“If you don’t own a home, buy one. If you own one home, buy another one. And if you own two homes, buy a third and lend your relatives the money to buy one.”

The above quote was made by John Paulson on September 27, 2010…

Mr. Paulson’s hedge fund made billions from his bet against the sub prime market during the housing boom.

The current Atlanta real estate market has created “the perfect storm”. Low mortgage interest rates and low prices.  Current Atlanta mortgage interest rates are hovering around 4.5% with plenty of foreclosure inventory available at unheard of low prices.  Investor rates will be about 1% higher depending on credit history.

When was the last time mortgage interest rates have hovered at 4%?  If you guessed President Eisenhower’s administration you would be correct.  That was fifty years ago.

If you are tired of earning less than 1% interest at the bank, buy a single family home and rent it.  Don’t like getting calls at 3AM to fix a toilet?  Don’t worry, it is rare.  However if you don’t like the hassle, you can retain a property management company.  Property Management companies in the Atlanta area typically charge 8% of the monthly rent.  A very small price to pay for letting someone else handle the 3AM calls and broken toilets.

Did you know that you can make money four different ways with a single family rental home.

1.      Positive cash flow every month

2.      Appreciation

3.      Tax deductions

4.      Tenant pays off your mortgage

During the coming weeks I will review in detail the four ways of making money from single family homes in the Atlanta real estate market.