1375 Richland Rd.Atlanta,GA 30310   

3 bedrooms, 2 bath.       Rented at $800 mo.

This large and cute home is located on a great looking street very close to West End shopping, public transportation and easy access to Downtown, the Airport, I-20 and I75/85. Ft. McPherson is located 1/2 mile away and the Beltline redevelopment will be ¼ mile to the north. This home has received an extensive renovation including the addition of an upstairs laundry room, plumbing updates, complete new heating and air systems, kitchen updates, extensive bathroom renovation, hardwood floors being refinished, upstairs master suite upgrades, complete interior paint, total exterior repaint and the addition of an updated front entrance.

1375 Richland Road has 2 bedrooms and 1 bath downstairs on the main level and a master suite upstairs. This home features a very large fenced back yard and a large deck to the side of the home accessed through a small office area. The home has a large living room and separate dining room. There is ample storage in the unfinished basement area.

The tenant in this home would like a lease to purchase agreement and wishes to purchase the home in 2-3 years so any potential buyer has the option to structure an exit strategy should they so desire.

This home is offered "Turn-Key Investor Ready" at $48,000

INVESTOR SALE:

 

This property is available as a Turn-Key investment property. All renovations have been completed, and a qualified tenant is currently in the home at a monthly rental amount of $800.00.

 

ROI:    $48,000 purchase price.  $800 monthly rental at an extremely conservative 85% occupancy rate = $8,160 annual revenue.   Property Taxes = $790 per year,  Estimated Property Insurance = $550 per year,  Property Management = $700 per year,  Estimated Annual Maintenance = $750.   Total annual estimated expenses = $2,790.

 

$8,160 revenue - $2,790 expenses = $5,370 net.   

 

$5,370 / $48K costs =  11.19% annual return assuming zero property appreciation.

 

This property meets all of my investor targets:

 

  1. Property can be purchased for 50% of its replacement costs.
  2. Monthly rent = 1.66% of purchase price… well over my 1% minimum target
  3. Property purchase price is more than 50% off the recent real estate bubble highs
  4. Potential owner occupancy total mortgage payment is less than 50% of the monthly rental amount.

 

OWNER OCCUPANY SALE:

 

This property is eligible to qualified buyers for down payment and purchase assistance of $5,000 through the “Georgia Dream” program sponsored by the Georgia Dept. of Community Affairs. This $5,000 grant can pay all down payment costs and closing costs allowing a potential buyer to purchase this home with close to zero out of pocket expenses. 

 

Below is a sample scenario for such a purchase. Please note that this is only a sample scenario and is not an offer of credit, interest rate quote or other guaranty of credit in any form. The seller of this property is not a lender or creditor. To obtain a full mortgage pre-qualification on the “Georgia Dream” loan program or FHA or other available mortgage options please contact the seller directly for a referral to a lender that specializes in these types of mortgage programs.

 

$48,000 purchase price.   $5,000 Georgia Dream Grant to fund 3.5% FHA down payment ($1,680) and all loan closing costs.

 

$46,320 Loan Amount

30 Year Fixed Rate FHA

4.625% Interest Rate*

$238.15 monthly Principal and Interest Payment

$35.00 FHA Monthly Mortgage Insurance

$67.00 Monthly Escrow for Property Taxes

$46.00 Monthly Escrow for Homeowners Insurance

 

$386.15 Estimated Total Monthly Payment

 

This monthly mortgage payment would allow a buyer to own this home for less than 50% of what it would cost to rent!

 

(*estimated APR = 5.5%)