Atlanta Market

Of all the new RE investment startups I like HomeUnion’s model the best. You own the whole house, not a slice of some illiquid fund. The value add they provide is to easily search and buy properties in many markets, and their property management crew. So you can spread your bets far and beyond the Bay Area market.

I got this email from them today:

That’s the detail if you click the details link:

I am sticking with Bay Area for now. Just throwing it out there in case some folks are interested… No, I don’t get a penny from them. Maybe I should… :thinking:

If I remember correct, Florida/Tampa has highest cap rate at 15% level. I do not invest outside of bay area. Nowadays, I prefer liquid REITs, than direct RE, as I can invest or start with small amount each REITs. They provide better returns, but there is no leverage of low rate mortgage.

That’s the beauty of buying a house directly. Also the 27.5 years of depreciation makes sure you are not paying any tax on rental income for practically rest of your life.

I have said it many times. People tend to over-estimate their own investment capability. With a liquid investment the tendency to over trade can be very hard to resist. Everybody talks about buying low and selling high. In real life only saints can resist selling at the depth of pessimism. With real estate, because it’s illiquid, and you have to jump thru so many hoops to sell, it acts as a brake to emotions. So at least for me, illiquidity is actually a feature not a bug.


RE requires much attention. You can’t buy and forget about it.

If you have a good PM you can pretty much forget about it.

Reduced return😊

How do you manage your Austin rentals?

PM for a reduced return which is still higher than the gross yield in SV but lower than East Bay.

So far, didn’t buy any fixer upper or in places that I would not live.

We could probably have a great discussion on this as a separate topic.

1 Like

Update on Atlanta rental market. Got this mail from HomeUnion today:

9.1% yield worse than Pflugerville :zipper_mouth_face: ad cash flow is based on 20% down Payment? What mortgage rate?

Rent yield looks good to me though. Know nothing about Atlanta.

San Diego is very cheap inland. Why?

No need to go to dangerous Atlanta. Inland San Diego is safe, upscale and super cheap!

I couldn’t believe the cheapness of inland SD

Someone I know was developing this: Feel free to check it out.

Cost of appliances are about the same everywhere, and any repairs and asset replacement are large percentage of the price of the house. And given the adverse weather conditions there, it is critical to control repairs and frequent asset replacement. How do landlords achieve such control?

Yep, one reason I haven’t invested in sub 100K houses without high margins. Today those generate 2-3% more than say 250K+. Also another reason I just want to go straight to multi-family.


Where are you looking for multifam?

All over the place. Reno, Atlanta, Fort Worth. Mainly following the big guys syndication 15+ mil and reading through their offering report.

Not sure why you think Atlanta is dangerous. I’d rather buy Atlanta than SD. More upside, better cashflow.

1 Like