friends I can purchase properties in Atlanta and Vicinity of about 9% gross This is Home Towns...

Then the bank asks: "What is the purpose of the loan?" What's your excuse?

Friends.

I can purchase properties in Atlanta and Visinity of about 9% gross

This is Home Towns.

Or purchase in Cleveland Ohio. In environments of 12% and in various cases even more than that. And this is SFH.

The reason I'm interested in this name is because of the connections and associates that can connect with me in these 2 environments.

The similarity between the 2 environments is the high population of blacks. Not that I have a problem with them personally, I even really like them and them too.

But I have heard of unpleasant passages of displacing flooring and disappearing tenants or a higher concentration of likelihood of not paying rent among these populations.

The difference is in the yield. In Cleveland, the cost of parking is significantly lower than in Atlanta, and the rent is not much less.

On the other hand, Atlanta is more likely to increase capital compared to Cleveland and housing demand in those areas is also higher.

In light of the above analysis.

While the return is king.

But what is really smarter I ask myself assuming I can focus on only one area in the near future…

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Responses

  1. Disagree, return is not the king. The relationship between the numbers you see today and reality will be partial. It depends very much on the environment and the property. If you buy low-cost and not something around, those numbers will remain theoretical. The important thing is value increase

  2. Two issues:
    1. The returns you mentioned are gross? Gross before taxes or before all expenses? For 9% gross I would not hesitate at all… 12% for a problematic population as I understand between the lines of what you wrote, I would not hesitate either…

    2. Lack of information about the areas where the properties are located… It is important that you know which deal you are entering into, regardless of the nice percentages on paper… the area may be on the face, a war area, but the yield there is even 20%. Even in this case, with how beautiful the numbers are, it is important that you understand well what adventure you are embarking on

  3. “In light of the above analysis…”
    Where did you see surgery?

    What are the differences in population between neighborhoods in each of the cities? Each of the cities has better and worse populations.
    What is the age of the houses?
    On what basis do you base your estimates that one place will cost more than another?
    Where is it more expensive to keep an empty house if it is not rented?
    Anyone who answers you to this question is a charlatan! I know Cleveland as my palm and I still can't answer you, because you haven't given anything to which you can give an educated answer.

    Risk management is the king, a return is its result.