I agree with pretty much everything Lee said, but there are some good options out there for you in this price range, that will cover your mortgage and then some by leasing it. Buying a HUD house (an FHA foreclosure) or a foreclosure or short sale in the right neighborhood would be your best option.
For example there's a foreclosure on the Memorial-side of Grant Park currently listed for $82k, that was bought for almost double that 3 years back. It's listed as a three-bedroom, but is really a 2 bedroom, and needs some fresh paint, washer/dryer, the carpet replaced, and a good scrub. Then you could probably rent it out for about $1000-$1200 a month. Great buy, in an appreciating area. However, as I write this, I'm sure the bank is receiving half a dozen offers.
If you're going to go the foreclosure/HUD/short sale route, you need to be flexible (closings tend to get pushed around), and unattached (because you'll probably loose a few before you win one), and ready to move quickly (because good deals in good areas get scooped up fast).
Areas where you have a good chance of swooping in on a pre-foreclosure, foreclosure, HUD, or short sale that are highly desirable areas for Renters: Grant Park, Ormewood Park, Edgewood, Reynoldstown, Kirkwood, and East Atlanta.
Atlanta has the highest surplus of HUD owned homes/condos in the nation, and I am part of one, of 28 Agencies in Georgia, certified to show and sell HUD homes. So, if you need any assistance in that department, I'd be more to speak with you one on one about that.
Also - As of May 20th, Georgia is going to be one of 17 states listed as a "declining market." Therefore, almost every Mortgage Broker/Bank is going to require that you bring some money to the table for a conventional loan. Currently I've heard, 10% down for personal property (possibly 8% for single family & 10% for condos), and 15-20% for investment property (it all depends on the individual company/bank). The only loop hole to this after the 20th will be to qualify for a FHA loan. If you have any questions the declining market or FHA loans, then you can contact me individually about that as well.
Great question & good luck!
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