Hi DT
These are the figures on one of my purchases in Atlanta in 2011.
I was considering selling the property below earlier this year and had an offer on the table at $127,000 but I decided not to sell.
If you can pick up something like this property today which would be good buying I guess at $80,000 with $10,000 rehab/reno you can work out the gross/net yields from my figures below. That is probably good buying in this market. I was buying properties around $18 per sq ft, it costs I believe around $90 per sq ft to build, just to give you an indication on how this market got well and truly hammered.
Of course you need to consider accounting fees, also county taxes are now increasing because property prices are increasing so may need to add $200?? guestimate to this figure.
http://www.realtor.com/realestateandhomes-detail/6120-Course-Side-Way_Lithonia_GA_30058_M52211-56194
FINANCIAL CASHFLOW ANALYSIS
PURCHASE PRICE $34,220.00
APPROXIMATE REHAB COSTS/BA FEE $19,182.00
TITTLE SEARCH AND SOLICITOR SETTLEMENT FEES
$1,200.00
LLC HOLDING COMPANY SETUP (GEORGIA ONLY)
INSPECTION $300.00
TOTAL PURCHASE COSTS: $54,902.00
MONTHLY RENTAL ESTIMATE $1,195.00
ANNUAL INCOME ESTIMATE $14,340.00
GROSS YIELD ON PURCHASE
26.12%
ESTIMATE BUILDING INSURANCE
$750.00
CURRENT COUNTY TAX (SUBJECT TO ADJUSTMENTS)
$935.08
YEARLY H.O.A. DUES (IF APPLICABLE)
$500.00
PROPERTY MANAGEMENT FEES AT 8% $1,147.20
ANNUAL EXPENSES
$3,332.28
NET INCOME
$11,007.72
NET YIELD ON PURCHASE
20.05%
.