967 Burns Drive SW                Atlanta, GA 30310         

3 bedrooms, 1 bath         Rented at $800 per month

This very attractive bungalow style home was built in 1920 and is filled with charm. The home features high ceilings, a giant front porch and large back yard, gorgeous expanded kitchen, separate laundry room,  a large living room with classic built in book cases, gorgeous hardwood floors throughout and a separate dining room. This home could be easily expanded in the future with a master suite upstairs in the very large attic space. The location is great, less than ¼ mile from Perkerson Park, less than 10 minutes from the airport and about 5 minutes from the Capital building downtown. Public transportation is extremely convenient. This home has received an extensive renovation to including kitchen and bathroom updates, exterior and interior paint, new heating and air conditioning, extensive plumbing and electrical upgrades and all new appliances.

The great location coupled with this homes fantastic charm offer excellent future appreciation potential.

This home is offer either as a Turn-Key investment or for an owner occupant.

Price:   $48,000

INVESTOR SALE:

This property is available as a Turn-Key investment property. All renovations have been completed, and a qualified tenant will be placed into 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%)