Hello friends,

My name is Chauncey and welcome to my second post. Since my first, I have gotten my ideas in order and have settled on a market in which I’d like to purchase my first investment property: Atlanta. 

I have curated a list of neighborhoods based on my personal metrics of:

1. Duplex/Triplex opportunities. 

2. Urban area.

3. Rental population vs. homeowners.  

3. Proximity to great schools and universities (Georgia State, Emory). 

I have not considered cash flow as of yet which is most important nor have I analyzed any of the listings I’ve seen. 

Still, here are my ideal neighborhoods (in no order):

1. Downtown Atlanta 

2. Midtown Atlanta

3. Buckhead

4. Inman Park

5. North Decatur

6. Virginia Highlands

*Druid Hills is close to Emory as well but quite expensive and has a low percentage of renters at 33 percent. 

Can anyone provide insight? 

Has anyone invested in these areas?

Thanks,

Chauncey

@Chauncey Glenn

The locations you listed are great and very desirable but will be more expensive to get into. You might have to consider a tear down or something that requires extensive repairs/renovation.

@Kelli Huang  

Hi Kelli, thanks for your response! (:

Some of these areas are quite expensive indeed. However, I have seen 2-3 bedrooms units (condo’s, townhouses) reasonably priced here and there (400K or less in some of these neighborhoods). I don’t have the time or wherewithal to repair anything and that isn’t my goal (to renovate initially). I’d also potentially live in one of the units and so I don’t want to be far from transportation and accessibility that urban areas bring. Though living further out would bring lower property cost. 

In living in one of the units I intend to access a FHA loan (being able to afford a 3-5 percent down payment of 10-15K max) making my investment more affordable.

With this new information, what would you suggest? Have you invested in the Atlanta market?

@Kelli Huang also, would you then consider lease option agreements in these desirable areas?

Do you know if there are restrictions in terms of subletting with such an agreement?

Yes there are affordable condo/townhouse in these areas, but some comes with high monthly maintenance/HOA fee plus subletting restrictions. Make sure to ask the complex management about them.

For me, finding a 2-4 unit that's FHA eligible would be one of the best way to go.

I haven't invested inside of the perimeter but I am looking for deals myself. 

I see. Thanks! Where then (neighborhood wise), are you looking?

Not knowing your price range or exactly the cap rate your looking for would be a better way to determine which area would be best to invest in. Atlanta is a very tricky place to invest in as neighborhoods change quite drastically as opposed to a cities like Decatur or Marietta. I work with many investors and in regards to Atlanta, most don't invest in those area's do to the price as mentioned. Instead they invest in places like Grant Park,Kirkwood, East Atlanta Village, Capitol View, East Point, Hapeville, or Old Fourth Ward. They focus on these places due to the appreciation and low entry price where you can build equity. Look up the appreciation in these areas its steadily going up each year. One investor in particular bought a property in East Atlanta last year for 73k rented it out for a year and recently sold it at 125k at 1100 sq ft. 

Look at the southwest and/or west beltline neighborhoods. Something between I-20 and the Westside Park/Bellwood Quarry will likely be your best bet for a speculation play. The neighborhoods are quite livable by an owner-occupant, but not nice enough that people are actually *looking* to live there yet. If I was making speculative investments in Atlanta right now, this is where I'd be looking. With the surrounding investment going on in both infrastructure and commercial projects, it's just a matter of time. The only real question is...how much time? Might be 5 years, might be 15. But as long as it has positive cash-flow in the meantime, does it really matter, especially if it checks the other boxes you need for your own situation like transportation, etc...

@Elaunte Brown Hi Elaunte. Thanks for your reply! I am not so concerned with appreciation as I don’t intend to sell for some time. I am concerned with cash on cash return. 

I’d say that my budget is 150 to 200K; if settling for a not so urban/desirable area. 

I am looking to cash flow at 3 to 5 (or more) hundred dollars per month.

I will check out the areas you’ve recommended however. Thanks!

@John Ford Thanks John for your response. I am not too interested in speculation but I willl give those neighborhoods a look. Especially if they’re affordable and close to public transportation. 

@Chauncey Glenn I am an Atlanta native and also looking to make my first investment purchase with a similar budget. The feedback you're seeing on here is accurate - the neighborhoods you've outlined are very expensive to get into for a turnkey property, and if you're looking to use an FHA loan and only put 3.5% down, you're mortgage note will be way too high for you to make the kind of cashflow you want. I'm debating now between the Southside towards the airport, close to public transportation, and where development is starting to pick up (i.e. East Point, College Park, Hapeville, etc) or a suburb north of the city where there are consistently really great schools to attract families. Best of luck in your hunt!

@Elaunte Brown

Based on your suggestions, here’s a bit of research I’ve conducted. 

1. Grant Park (C- schools, C+ crime, A diversity, 38% rent vs. own).

2. Kirkwood (C- schools, C+ crime, A diversity, 43% rent vs. own).

3. East Atlanta (C- schools, C crime, A diversity, 32% rent vs. own).

4. Capital View (C- schools, C- crime, B diversity, 46% rent vs. own).

- near 2 colleges (a plus).

5. East Point (C+ schools, C- crime, B+ diversity, 58% rent vs. own).

- a park (a plus). 

- high rent to own ratio (a plus).

- affordability (a plus). 

6. Hapeville (C schools, C- crime, A+ diversity, 66% rent vs. own).

- near airport (a plus).

- high rent to own ratio (a plus).

- high diversity rating (a plus).

7. Old Fourth Ward (B schools, C crime, 76% rent to own).

- two parks (a plus).

- a medical center (a plus).

- a market (a plus).

- high rent to own ratio (a plus).

Based on this information —as it aligns to my personal ideals— I’d only be interested in Old Fourth Ward and possibly Hapeville as potential neighborhoods. 

@Rebecca Cardona Rebecca! Let’s connect and continue this conversation, as a native and person with a similar budget, we can help one another. I’ll send you a request. 

I have just looked into Hapeville as someone here has suggested it, and it seems OK. My main concern and reason for choosing those urban areas initially, is my lack of mobility. I don’t own a car and would need one in considering more suburban and affordable areas. 

Do you drive? What is your take on this? You also appear to be a millennial! Do you think that it’s reasonable or necessary to budget for carpooling services such as Uber as a solution to this mobility issue?

Hey Chauncey,

I've lived in Atlanta for 5 years. Depending on where you are going ubering or walking to Marta can be effective. My wife did that for a couple years for work. But trying to do any grocery shopping without a car would be problematic for me. 

We're also looking to purchase in the next year but won't have the benefit of FHA.

I'm curious how successful you and @Rebecca Cardona will be. I'd love to chat with the both of you on your thoughts on the Atlanta area.

Thanks for your response! I haven’t been so active in continuing my research of the Atlanta Market. 

Any thoughts about Grove Park? I heard that area will appreciate in the next years, is it a good neighborhood to rent right now?

@Chauncey Glenn

Hello Glenn,

I’m from Atlanta if you want to DM me I can tell you about the areas, and how they have changed from back then to now. I’m new to RE too!

Hello all-

I am also looking at investing in a real estate property near Atlanta. Seem like Covington, GA has a lot of potential for real estate appreciation. Any thoughts would be greatly appreciated.

Thanks,

Hey y'all

Looking into purchasing a second rental investment property. Looking for recommendations on best areas for:

1) Single Family Home

2) 275K max

3) In good school district (7+ elementary)

4) ITP or within a few miles of

Please pm me.

Thanks,

Joel