There was article in the WSJ on May 16 titled "Single-Family Rentals Keep Pulling in Investors".  It ties in nicely with one of my earlier post concerning single family housing as the new asset class.  This article discussed Colony American Homes, a private equity firm, which has raised about $750 million so far and will have purchased more than 1,000 distressed homes by the end of June.

Their projections are based on annual rental cap rates in the 7 - 9 % range and they assume the rents and home values will increase 3-5% per year going forward.  This will equate to 15% returns to their investors.

Those seem like conservative projections to me based on what I see in my market and it does give some validation to the theory single family housing is becoming a viable asset class for investors.

I'm still not sure how efficient asset management will be on such a large scale,  but feel that smaller investor groups targeting 75 - 100 homes in specific market areas will do well.  Real Property Management Executives Greater Atlanta would like to partner with interested investor groups to pursue these opportunities.  Give us a call!

Rainy day in property management

It's Mother's Day, it has been a constant downpour and it's still a busy day. Reinforces my feelings that property management is a strong business to be in. I will be leaving my Mom shortly to hopefully go lease one of our properties. Happy Mother's Day mom!

Added our 30th property today. I'm very happy with our progress as a property management firm. My business plan projected two new properties a week and we are a little ahead of plan.

Property management at it's best. 110 miles, two new management contracts, one new lease, one strong prospect which I expect to turn to a management contract.

One of the best decisions I have ever made is to partner with Beth Hunter, THE CLOSER.

Another week in the books... no wait, we are property managers, there is still Saturday and Sunday to go!

Be sure and check out my next article for new landlords about the concept of depreciation.  Drop me a line at tim@rpmgreateratlanta.com if you would like to be added to the distribution list.

Single family housing as the new asset class?

A lot of press lately about single family housing becoming the new asset class for big investors.  I think it can be done profitably for small investors also.  Recently, one of our property owners picked up a 1,900 ft +/(-) property for $110,000.  Property needed $5,000 of cosmetic repairs to get it ready to rent.  It should rent for $1,300 per month.  $15,600 gross rents per year on a $115,000 investment...Not bad.

Life of a property manager

The life of a property manager-Saturday morning, service call scheduled, technician on the phone and I can't find the tenant;  Property showing at 11:00, prospect calls and is just leaving.....North Carolina.  Alas, the day is only half over;  more adventures for the afternoon.