Looking to house hack in or around Atlanta GA
Hey everyone! Currently reading Craig Curelop's book on house hacking AND I'm planning on moving to the Atlanta GA area soon so I figured hey when life gives you lemons! I was wondering if anybody had some insight as to what would be the "best" area to do this. By best, I mean up and coming towns currently in transition from b- to b+ that aren't exactly in downtown Atlanta, but aren't farther than a 10 minute drive. Ideally looking for something in 200-300k range. I was looking through some old discussion threads that talked about massive development in the College Park area. Would this be a wise place to house hack, and make some lemonade so to speak? Haha thanks everyone!
@Geoffrey Gelorme
Hey Geoffrey-
Welcome to Atlanta. As a long time resident and agent...here’s my 2 cents.
If you’re looking for something outside the city in that price range... College Park would be a good place to start. This is where I currently reside.
I would also consider East Point. You’re close enough to the city but not in the city. These areas are more so on the South side which is still affordable in price compared to other areas of the city. The funny thing about college park is that it’s split between two counties- Clayton & Fulton. Clayton county school systems have a long way to go in terms of educational quality. So, keep that in mind as well. I will say that my home in college park has seen nice appreciation since I bought it in 2016 regardless of the bad school system.
You should also look into Marietta, Austell, Decatur- these areas have higher prices than the ones mentioned above but these areas have better school systems and more attractions and command higher rents.
I hope this helps. Feel free to reach out anytime. I’m happy to help.
Best,
Canesha
@Canesha Edwards Thank you so much for your opinion Canesha! I'm glad you mentioned the school district because it seems that this really is the only drawback to the area, and the fact that it doesn't seem to affect appreciation all that much is nice to hear. Is the 30337 zip code an area that would be desirable for aspiring actors and actresses to rent as an alternative to higher priced apartments smack dab in the middle of the action in Atlanta? Would you advise renting to aspiring actors? haha forgive me if these questions are amateurish, I'm from CT and don't know the area at all...YET:)
@Geoffrey Gelorme
No worries about the questions. That’s the best way to learn.
That’s the zip code for College Park. If actors/actresses is your target tenant base.... I would say that would that’s a good area for that. Tyler Perry Studios is close by. The airport resides in college park and its close enough to the city.
Also, there is tons of new development coming to the area. Here a news article about the new development
https://www.ajc.com/news/atlanta-news/college-park-breaks-ground-on-15b-mixed-use-project-six-west/VX5NGN4ORVCXZAPXCR234TOHKI/
Thank you so much @Canesha Edwards! You're the best! As I understand it, the price per square foot for this house falls below what is typical in College Park. I'm looking to do a little forced appreciation in the form of cosmetic work, so this one has definitely piqued my interest. Would you be willing to give it a look? If not, no problem!! You've already been so helpful:) https://www.zillow.com/homedet...
@Geoffrey Gelorme
I took a look at the property. One it’s too high and it needs a lot of work cosmetically. The pool is a concern. It looks to be in pretty bad shape, that’s extra cost.
As an investment, this house is more of a fix and flip than a rental. This is an SFR and not a duplex although, I guess the basement area could be an considered another unit. But in my opinion...this would make a great family home. The property is close to Woodward academy....award winning private school in East Point/College Park.
I can’t really give you details about the renovation without seeing the property in person, but a big ticket item to consider would be the roof. I can really tell it’s condition from the picture. Flooring looks to be in good shape from the pictures though.
When purchasing investment properties you want to buy the property at 70% discount ( based on ARV) - rehab cost- profit margin.
Example: Let’s say a property is worth $100k completely renovated. 70% of that is $70k - $30k rehab-$20k profit.
You would want to pay $20k for the property.
Let me know how else I can help. I would love to be your agent and help you find your first investment property.
Best,
Canesha
Your breakdown is much appreciated @Canesha Edwards
To give you an idea of what I plan to do, Ideally I'd want to rent a SFR by the room, so the added basement space was a plus for me. I have no qualms with renting out the entire space while living in a trailer in the driveway - going the aggressive house hacking route here! As for the roof, could that be something negotiated with the seller? As in I buy the house conditional upon them fixing the roof?
@Geoffrey Gelorme
Anything is negotiable. Just depends on whether the seller accepts.
Fair point! Again, thanks for the insight @Canesha Edwards As an agent, have you had a lot of clients who house hack?
@Geoffrey Gelorme
Some do and some don’t. Since you’re fairly young... house hacking would be a great way for you to get into real estate.
House hacking using an FHA loan would allow you to put down 3.5-5% on a property 1-4 units. You live in one unit....the tenants pay the mortgage and hopefully there is extra money left over for you to put in your pocket. After a year...you move out and you have a solid investment property.
With interest rates being so low....it’s a good time to look at buying.
@Canesha Edwards My thoughts exactly!