San Ramon, CA · Member since 2017 · 21 posts · 6 votes
Hi Bigger Pockets,
I am new(ish) to this forum and it's my first post. I've been listening to the podcast and have listened to Brandon's Book on Rental Property Investing and I have chosen Atlanta as my next market to invest in rental property.
I am really impressed by what I see so far on BP and would appreciate any recommendations for realtors, property management companies, contractors, and portfolio lenders in the area.
My goal in the short and medium term is cash flow and I would appreciate any recommendations for areas to AVOID in Atlanta as well.
Thank you all in advance for your help!
Sam
Financial Advisor · Atlanta, GA · Member since 2016 · 256 posts · 350 votes
9y
@Sam Leung I live and work in Atlanta, so I am admittedly biased. But I think it is a really interesting time to own affordable single-family homes in the City of Atlanta. If you are looking in the southern half of the city, you are probably seeing that you can buy houses that rent for $1,000+ a month for less than $100k. And unlike many of the cash flow-centric markets @Ali Boone listed, you have the potential for meaningful appreciation if the positive trends in many of these intown neighborhoods continue. What's happening is that neighborhoods that used to be 100% renters (and often blighted with vacant houses) are becoming attractive to owner-occupants looking for affordable homes and short commutes. To be sure, home prices in lower-income neighborhoods are quite sensitive to economic conditions and availability of financing, so a recession or credit crisis could quickly stop (or at least delay) the positive trend.
I'll add the caveat that I believe that long-distance investment in rental property is generally a bad idea. But if you are going to do it, there is opportunity in Atlanta.
Hi @Sam Leung! While I may not have any firsthand experience buying in the Atlanta market (yet), I am an Atlanta local and very familiar with in-town neighborhoods. Areas to avoid would really depend on what you're looking for in a property. Feel free to reach out to me with any locations in question and I'd be happy to give you some insight on the neighborhood. Happy hunting!
Real Estate Agent · Atlanta, GA · Member since 2016 · 127 posts · 48 votes
9y
Hi @Sam Leung, welcome! I am an agent working through the Atlanta area and would be happy to answer, questions, run comps, or help you with the investment search. The Atlanta market is on fire right now and essentially at pre-recession peaks. Feel free to send me a message and let me know how I can be of service.
Hi @Sam Leung, welcome! I am an agent working through the Atlanta area and would be happy to answer, questions, run comps, or help you with the investment search. The Atlanta market is on fire right now and essentially at pre-recession peaks. Feel free to send me a message and let me know how I can be of service.
Residential Real Estate Broker · Cartersville, GA · Member since 2015 · 575 posts · 581 votes
9y
Hi @Sam Leung we can assist for sure just give me a shout. Discussing areas not to invest in is probably best done via telephone but Atlanta is a fantastic place to invest.
Hi @Sam Leung we can assist for sure just give me a shout. Discussing areas not to invest in is probably best done via telephone but Atlanta is a fantastic place to invest.
Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
9y
Hi Sam! I'm from Atlanta and my properties are there, and I also live in CA. Is there any reason why you've chosen Atlanta as the city you want to invest in? A few years ago it was literally the #1 market to invest in, but now the market dynamics have changed a lot and I don't really recommend it any longer. I won't even buy there, and that's where most of my stuff is. Just curious. And happy to help if I can.
San Ramon, CA · Member since 2017 · 21 posts · 6 votes
9y
Hi Ali Boone - Thanks for reaching out. We've chosen Atlanta because the numbers for quite a few of the properties that we've looked at in the south part of the city work out and many of them work out very well. We see some opportunity there in the B and C areas. The numbers are definitely not as good as they were a few years ago, but still decent. What areas of Atlanta are you currently in? Why are you so against buying something there now?
Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
9y
Honestly, the numbers you're going to find there are going to be low compared to a lot of other markets out there now. That's the main reason I'm against it- more bang for your buck elsewhere. The other problem with Atlanta is it became very saturated with the investing boom. I don't know how it is right this second because I haven't had a vacancy in a while, but there was a point where it became hard to rent out my properties as quickly as usual because there were so many rental properties because of all of the investor action. So my vacancy times increased, my tenant quality became less stable, and it just got a bit hairy.
But most generally, I think there are better markets in terms of price points, rentability, cash flow, and stage in the growth cycle. Atlanta isn't the worst in the country, but I think there are plenty better. That's why I don't advocate it much now.
San Ramon, CA · Member since 2017 · 21 posts · 6 votes
9y
Thanks for the insight Ali Boone . What are the other markets you're looking into at the moment? We've looked at others as well, so it would be interesting to compare notes.
Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
9y
Right now I've been working most heavily with Chicago, Kansas City, Indianapolis, Philly and Baltimore. Which ones have you been checking out? Message me or email me anytime if you want to talk in more detail!
Rental Property Investor · Ramsey, NJ · Member since 2016 · 72 posts · 55 votes
9y
Hi Sam,
I'm also a new investor, starting with Atlanta. Just bought my first BRRRR property (a foreclosure). It was an okay deal but not a home run. Will probably cap 13%. A busted HVAC unit took a bite out of my initial equity position. While I'm looking in the suburbs surrounding Atlanta - and not the metro area - my impression thus far is that it's much trickier to find amazing deals than what I see from even a year or two ago. It seems to have gone from "Get in now while it's cheap!" to "Looks decent because prices are still rising."
There is quite a bit of migration of blue collar families to the area and the employment outlook looks quite good. So the economic factors seem to support long-term health of rentals. But you'll likely have to really work to find a home run of a deal.
I'm buying in cash, rehabbing and then going for financing. There seems to be a decent amount of inventory if you're cashed up at least. But I think the gold rush is over and I feel like I'm rooting for scraps.
The reason I settled on Atlanta was because I found good people there to work with, which business has taught me is generally more valuable than how a given deal looks on paper. I had also been looking at Tampa and Orlando, Florida and Austin, Texas (too tenant friendly).
San Ramon, CA · Member since 2017 · 21 posts · 6 votes
9y
Ali Boone I've checked out KC, Chicago and Indy as well, but have also looked at Memphis. Seems like all are good choices. I decided no on Chicago because of the high property taxes. Of the remaining Atlanta is the easiest for me to get to and I have family there that I can lean on. Seems like the lowest barrier to entry at the moment. The other markets are still on the table.
Turnkey is great, but I still want to see what I'm getting into before I pull the trigger.
Lender · Norcross, GA · Member since 2015 · 65 posts · 23 votes
9y
There are definitely still deals in Atlanta. Though I don't know other markets and I'm sure there are others that are better (aren't there always? I've personally thought of looking in Memphis & Indy too but they are also getting investor-heavy it feels), if Atlanta is what you've chosen there are deals that work.
Atlanta, GA · Member since 2017 · 7 posts · 5 votes
9y
I am new to the US rental market; but had been a landlord in the UK for 15 or so years. Living in Atlanta; I am starting to look at locations too. Would welcome counsel from Atlanta based current investors too...
Sam - Atlanta is super diverse in housing and schools. I would recommend visiting specific areas as it gives you an idea of where to consider.
I am looking at higher quality areas north of midtown.
Investor · Bushnell, FL · Member since 2016 · 456 posts · 224 votes
9y
My 2 cents .. I loved investing in Stone Mnt area .. unfortunately I never moved there like i planed and found the distance flipping to much without a boots on the ground person I could trust .. good luck
Real Estate Investor · Memphis, TN · Member since 2016 · 940 posts · 695 votes
9y
@Sam Leung and @Jeff Dimock - let me know if I can do anything to help you in the Memphis area.
@Jeff Dimock - you are right: there are lots of investors (local and OOS) here but that is because it is such a renter heavy area. One reason why we have such growing TKPs.
I'm obviously biased towards Memphis but I'm sure all the other cities folks in this thread have suggested would be great too.
Real Estate Professional · Newnan, GA · Member since 2016 · 9 posts · 3 votes
9y
Welcome to Atlanta!! I'm in the Metro Atlanta area, if there is anything I can do to provide you with any resource or advice I'd be happy to offer my assistance to you.
Nikki Jones
Residential and Commercial RE
Financial Advisor · Atlanta, GA · Member since 2016 · 256 posts · 350 votes
9y
@Sam Leung I live and work in Atlanta, so I am admittedly biased. But I think it is a really interesting time to own affordable single-family homes in the City of Atlanta. If you are looking in the southern half of the city, you are probably seeing that you can buy houses that rent for $1,000+ a month for less than $100k. And unlike many of the cash flow-centric markets @Ali Boone listed, you have the potential for meaningful appreciation if the positive trends in many of these intown neighborhoods continue. What's happening is that neighborhoods that used to be 100% renters (and often blighted with vacant houses) are becoming attractive to owner-occupants looking for affordable homes and short commutes. To be sure, home prices in lower-income neighborhoods are quite sensitive to economic conditions and availability of financing, so a recession or credit crisis could quickly stop (or at least delay) the positive trend.
I'll add the caveat that I believe that long-distance investment in rental property is generally a bad idea. But if you are going to do it, there is opportunity in Atlanta.
I am new(ish) to this forum and it's my first post. I've been listening to the podcast and have listened to Brandon's Book on Rental Property Investing and I have chosen Atlanta as my next market to invest in rental property.
I am really impressed by what I see so far on BP and would appreciate any recommendations for realtors, property management companies, contractors, and portfolio lenders in the area.
My goal in the short and medium term is cash flow and I would appreciate any recommendations for areas to AVOID in Atlanta as well.
Thank you all in advance for your help!
Sam
Welcome to the site! Good luck to you & I'll see you around the forums.