Home Buying in 30067>Question Details

Justin B, Home Buyer in Marietta, GA

Buying rental property in 30067 (between Powers Ferry Rd and I-75) for $90k. Will I get good ROI?

Asked by Justin B, Marietta, GA Mon May 7, 2012

All brick home built in 1962, 3/1.5, hardwood floors, good shape, ready to rent condition, car port, fenced in backyard, basement. Will I be able to rent it for $1,000 a month? Should I use rental management company or rent it myself considering time/value?

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Deryk Harper’s answer
HI Justin,
I have lived in the metro Atlanta area since 1965. I grew up off of Powers Ferry Rd and lived in several different homes there within about 5 blocks of each other. My mother has lived in the same home off of Oriole Lane for over 30 years. At one point, or another, I have been inside most of the homes in the area. I even attended Powers Ferry Elementary School.
The neighborhood has definitely changed. If you want to discuss the particular home you are purchasing, and rent values / ROI/property management, give me a call at 770-722-6922. I own my own property management brokerage and I am also an associate Broker with Keller Williams Realty for real estate sales. Marietta is not in my service area but I would be happy to share my experience there, and the pros/cons of property management, as a neutral 3rd party. If needed, I can refer you to a good property manager in that area.
Regards,
Deryk Harper
Broker/Owner
Key Locations Property Management LLC
0 votes Thank Flag Link Mon May 7, 2012
BEST ANSWER
Justin,

There is no substitute for competent leasing and management. Attracting and selecting tenants is a specialized skill, many of the tools are only available to professionals. Just because you can change the transmission in your car or install a garage door opener does not mean you should. Often it costs more to do it yourself if you are not experienced. Depending on the finish, size and elementary school, $1000 a month is not out or the range of possibility, but it is significantly harder to lease a home with less than 2 baths and $1000 is on the upper range in that area.. The amount of time you market also influences the price. If it takes and extra month to get $50 more per month rent, you have lost $400. Most owners will reduce rent to get a property occupied sooner rather than later. Send me an e-mail if you have additioanl questions.

Bruce Ailion,
RE/MAX Greater Atlanta
An Atlanta Real Estate Expert Serving Clients Since 1979
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Attorney
2050 Roswell Road
Marietta GA 30062
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678-760-6266 Buyer’s Agent Adam
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0 votes Thank Flag Link Mon May 7, 2012
Renting it yourself is less expensive then management company if that is what you want to do. question is do you have the time to do reference checks, back ground checks etc and do any necessary repairs or do you want someone else to handle all that for you. as for the amount for rent that sounds like it would be a good rental price for what you are offering and location and easy of acess to 75. Thanks and have a great day.

Denyse Brennan
Prudential Georgia Realty
0 votes Thank Flag Link Mon May 7, 2012
Hi all, thanks for your input so far. I will take out 15yr 3.375% mortgage with 20% down. I could comfortably put 60% down, but I want to keep cash for any possible repairs or down payment for next property purchase. Taxes are approximately $1,5k, home insurance let’s say $500.

I am married in my 30s and I have no debt other than my primary residence which is at 60% LTV. I want to see if being a landlord is for me and buy few more properties if things work out. Basically I want to diversify my retirement investments between maxing out 401k, Roth IRA and owning rental properties. Any advice would be greatly appreciated.
0 votes Thank Flag Link Mon May 7, 2012
You'll be alright. You seem like a smart guy.
Web Reference: http://Intowninsider.com
0 votes Thank Flag Link Mon May 7, 2012
Good morning, Justin....

There is not enough info here to give you a good answer, we do not know even how you financed the property, the taxes, well, you get the idea.

Best wishes, Jim
0 votes Thank Flag Link Mon May 7, 2012
Justin,
Difficult to figure ROI without knowing what your investment is. Is it 90K cash or are you financing? There is a big difference between 1.5 and 2 when it comes to rental properties. Please feel free to send me an email or give me a call and we can discuss this further. I am very familiar with the area with both sales and rental/ property management.
Thanks and I look forward to hearing from you.
0 votes Thank Flag Link Mon May 7, 2012
$1000 would be on the high end but not totally out of the question. With 1.5 baths I think a little lower is more likely and will rent faster. Cut down on your vacancy time.

I absolutely recommend that you do use a prop management company.
0 votes Thank Flag Link Mon May 7, 2012
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