Key Property - 11% to 17% Cap Rates
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Investment Process

When an investor purchases a Key Property home, they become a Key Investment Partner...for life.  Each Key Property home is individually selected based on specific criteria to ensure a predictable experience for the investor.  Projected Cap Rate (see definition below) factors are considered at the time of acquisition, such as, the condition of the home, the neighborhood (we do not purchase homes in seriously distressed/war zone areas), estimated repairs to bring the property up to our internal standards, and the combining of these elements with an acquisition price that will render a 11% to 17% Cap Rate for our investors.

Here's what it would look like for an investor with about $200K (cash flow if the homes they chose were roughly a 14% cap rate):
  • ≈ $4,600 per month net cash flow (after 6 years when loans are paid off using our financing...see "Services" page for more details)
  • ≈ $2,300 per month net cash flow (for all cash sale)

Available Inventory

Member Only area
Please click 'login' button below or if not a member yet, contact Concierge Team to request your free account 
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Sample Homes Below

Feel free to browse the slideshows of some sample homes below.  These are real life examples of Key Property homes we sold to our investors.  The purchase price of these homes were in the $45K to $60K range.  When you're interested in taking the next step, our Concierge Team will set you up in the members only area so you can see homes currently available.

Cap Rate refers to the Net Operating Income divided by the Purchase Price.  The Net Operating Income is derived from deducting the following expenses from gross annual rent amounts:
                    $600 per year property management fees (VIP rate of $50 per month),  $500 maintenance & repair allowance,  
                    $450 per year insurance,  actual property tax amount, 6% vacancy factor,  and HOA fees (if any).

Property Condition

Each Key Property home has gone through a rigorous evaluation once purchased.  Most homes include the following:
Kitchen, bathroom(s) and entry of most homes will see a nice tile (usually a travertine look) instead of linoleum/vinyl.  About 400,000 gallons of paint are used each year to create a nice two-tone neutral color wall and white trim look in most homes.  We use semi-gloss paint on the trim and a flat paint on the walls.  The flat paint on the walls saves the investor money by allowing a tenant caused nick in the paint to be fixed by spot rolling.  Carpet has been replaced with a neutral color berber carpet.  While it is slightly more expensive, it lasts much longer and stays looking nicer during the tenant's tenure.  Fixtures (i.e. ceiling lights, faucets, door handles) are upgraded to a brushed nickel and ceiling fans are added in certain areas of the home.  Occasionally the roof has been repaired or replaced, and many times even the furnace, appliances, and AC unit are replaced.


Guarantees  (no charge to owner)

  • 30 days:  No work orders  (even if someone throws a baseball through the window)
  • 90 days:  Rent to new owner
  • 6 months:  Scope of work (renovations done on property)
  • 1 year:  Tenant replacement (if tenant moved out in the first year...normally $500)
  • 1 year:  Appliances, AC, HVAC  (whether they are new or not)


Note - Guarantees are provided the property remains under management with Key Property.


Property Evaluation

We strongly encourage you to fly into Atlanta and see our operation.  This can happen either before or after your first purchase.  It is then that you will truly grasp that this is not so much about a particular property as much as it is about the operation as a whole...all parts working synergistically with each other.

If you come on the first friday of the month (during auction week), you will get a clear picture how we acquire properties and why it takes about 70 people to do it right.  As you tour neighborhoods and properties in varying stages of renovation, you'll see why we have 4 construction offices in different areas throughout the Atlanta market.  One of the most confidence inspiring things will be an understanding of how we manage each property, including tenant placement, maintaining the property, and the tools and reports available 24/7 for our investors to know exactly what is going on with each property.  Above all you will meet the people on the ground and get a sense of integrity and commitment to our investors and why we see them as our Key Investment Partners...for life.

Additional free resources to evaluate a property you're interested in:

Property Analysis Report
     Click Here for a free customizable property analysis report for those who want even more detailed information than what is provided on a property in the member only area of Available Inventory.  Included are calculations of sophisticated indicators such as capitalization rate, cash on cash return, financial and resale analysis.  See sample report.

Neighborhood Data
     Click Here and fill in the property address to retrieve extensive neighborhood data.  Community and demographic information, schools with ratings in close proximity to the property, nearby establishments and their distance from the property, etc.

Street View
     Click Here to view the property from the street.  Once you put the address in, click on the picture and you will get a street view (not available on some streets).  Use the arrows shown on the street to 'drive' the neighborhood.

Sky View
     Click Here to view the property from the air.  Click the "Bird's Eye" tab at the top and put in the property address.  This is different from a satellite view...pictures were snapped from an airplane flying over area.


Markets 

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Why Atlanta?

Atlanta is the 9th largest metro area in the nation (2010 U.S. Census) and of all U.S. markets, provides the best combination of the newest rental home with the highest cap rate (return on investment).  Key Property homes average 1984 with cap rates between 11-17% (factors rent, expenses, and price of home).

Atlanta was listed as the #1 Best City For The Newly Graduated by the Huffman Post and is #1 on mint.com's list of cities with the most job growth with an estimated 2.5 millions new jobs in the next 20 years.  For a list of more reasons to invest in Atlanta,  Click Here

Since 2000, metro Atlanta has grown by over 1.1 million people - a 27 percent increase.  Why is our population exploding?  Such reasons include our diverse economy, higher education opportunities, below average cost of living, active lifestyle, moderate climate and available air service.
We are proud to be the home of major companies that are recognized worldwide such as Coca-Cola, UPS, Delta, Chick-fil-A, TBS, Home Depot, Newell Rubbermaid, Southern Company, The Weather Channel and many more.  
Metro Atlanta employs over 2.4 million people.  The top three employment sectors are trade, transportation and utilities, professional  and business services and government.

Source:  Metro Atlanta Chamber of Commerce










© 2012 Key Investment Partners, LLC