Newbee, wants to invest in Atlanta
NYC · Member since 2022 · 3 posts · 5 votes
Newbee, wants to invest in Atlanta
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Real Estate Agent · Atlanta, GA · Member since 2020 · 1k+ posts · 1k+ votes
4y@Antonio Cordova, the best way to go about implementing your investment strategy out of state is by doing exactly what you're doing now, connecting with investors and vendors here on BP. More likely than not, your first point of contact should be an investor who has experience in the market or a real estate agent that primarily works on investments. I will point out, however, that it's important to recognize that what you're pursuing is also what hundreds if not thousands of other investors are looking for, SFH/2-4 unit deals that cash flow in a rapidly growing area. Also, flying out to look at different properties and neighborhoods is fine initially to get a sense of the area, but don't expect to be doing this for every potential deal. Needless to say, the real estate market is hot with properties sitting on the market for an average of 6-8 days and investments more so seeing 2-3 days before they're under contract. With all that being said, as an out-of-state investor, you must have someone that can be your boots on the ground. Moving forward, I would reach out to several investors and agents to get a sense of what is being seen in the market and the best approach to utilize to lock up a deal. Hope this makes sense and helps!
12 Replies
- Real Estate Agent · Atlanta, GA · Member since 2020 · 1k+ posts · 1k+ votes4y
@Antonio Cordova, the best way to go about implementing your investment strategy out of state is by doing exactly what you're doing now, connecting with investors and vendors here on BP. More likely than not, your first point of contact should be an investor who has experience in the market or a real estate agent that primarily works on investments. I will point out, however, that it's important to recognize that what you're pursuing is also what hundreds if not thousands of other investors are looking for, SFH/2-4 unit deals that cash flow in a rapidly growing area. Also, flying out to look at different properties and neighborhoods is fine initially to get a sense of the area, but don't expect to be doing this for every potential deal. Needless to say, the real estate market is hot with properties sitting on the market for an average of 6-8 days and investments more so seeing 2-3 days before they're under contract. With all that being said, as an out-of-state investor, you must have someone that can be your boots on the ground. Moving forward, I would reach out to several investors and agents to get a sense of what is being seen in the market and the best approach to utilize to lock up a deal. Hope this makes sense and helps!
- 4yBrenden MitchumBusiness MemberRental Property Investor · Atlanta, GA · Member since 2019 · 1k+ posts · 872 votes
Hey @Antonio Cordova, welcome to the BP Community!
As @Michael Dumler said, your focus should be on building a team here because flying back and forth is not going to be sustainable. Fly out a few times to get a feel for neighborhoods and meet/build your team. Then, start getting serious about what you're looking for and where. Next, effectively delegate and manage your team to secure properties.
That's the simple, high level version of an OOS investing plan. In reality, it will be much more complicated and difficult than that. Your biggest hurdle will be just finding cash flow here in Atlanta, especially if you want to purchase traditional turnkey investments. This just doesn't really exist here or in most major U.S. metros right now unless you're going direct to seller or at the top of several wholesalers' lists.
My advice would be to look into coliving investing. This strategy would certainly help generate more income but you will also need to build processes to properly manage expenses. Fantastic strategy and really the best option I'm seeing to produce solid cash flow from turnkey properties here in Atlanta. This is especially powerful for OOS investors, granted you can build the right team of knowledgeable agents and managers.
Hope this helps a bit! Please, feel free to reach out anytime if you have other questions or just want to chat about the ATL market!
- Rental Property Investor · Oakland, CA · Member since 2021 · 22 posts · 61 votes4y
Quote from @Brenden Mitchum:
Hey @Antonio Cordova, welcome to the BP Community!
My advice would be to look into coliving investing. This strategy would certainly help generate more income but you will also need to build processes to properly manage expenses. Fantastic strategy and really the best option I'm seeing to produce solid cash flow from turnkey properties here in Atlanta. This is especially powerful for OOS investors, granted you can build the right team of knowledgeable agents and managers.
Hey Antonio,
I've just had a great experience with Homeroom in Indianapolis. They specialize in co-living property management. Check my posts to read about my entire experience start to finish. Good news, they just expanded to Atlanta! I got an email days ago with a really beautiful property that I wish I could buy right now. Homeroom was a game changer for me. Maybe they could be your answer too. Best of luck!
Cheers!
- Real Estate Agent · Atlanta, GA · Member since 2022 · 2 posts · 0 votes4y
Hey @Antonio Cordova!
It sounds like you are on the right track! As @Michael Dumler said, building a team that you are comfortable with and can understand your goals and see eye-to-eye is the main key. Once you have a team that you trust it basically becomes second nature.
- 4yNiyi AdewoleBusiness MemberReal Estate Agent · Atlanta GA & Orlando, FL · Member since 2015 · 214 posts · 101 votes
You are taking the correct first step, which is connecting with other investors on the biggest real estate forum in the world! Atlanta is a solid market with diveristy of jobs and growing population. I currently own 2 short term rentals, manage an additional 6 (8 total) , in atlanta and surrounding counties, would be more than happy to connect to discuss neighborhoods and potentially set up your first visit to ride along.
- 4yDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
Your biggest question shouldn't be WHERE to invest, but HOW you will invest!
Many OOS investors set themselves up for failure because they don't truly take the time to understand:
1) The Class of the NEIGHBORHOOD they are buying in - which is relative to the overall area.
2) The Class of the PROPERTY they are buying - which is relative to the overall area.
3) The Class of the TENANT POOL the Neighborhood & Property will attract - which is relative to the overall area.
4) The Class of the CONTRACTORS that will work on their Property, given the Neighborhood location - which is relative to the overall area.
5) The Class of the PROPERTY MANAGEMENT COMPANIES (PMC) that will manage their Property, given the Neighborhood location and the Tenants it will attract - which is relative to the overall area.
6) That a Class X NEIGHBORHOOD will have mostly Class X PROPERTIES, which will only attract Class X TENANTS, CONTRACTORS AND PMCs and deliver Class X RESULTS.
7) That OOS property Class rankings are often different than the Class ranking of the local market they live.
8) Class A is relatively easy to manage, can even be DIY remote managed from another state. Can usually allot 5-10% vacancy factor and same for maintenance.
9) Class B usually also okay, but needs more attention from owner and/or PMC. Vacancy and maintenance factors should be higher than for Class A as homes will be older, have more deferred maintenance and tenants will be harder on them.
10) Class C can be relatively successful with a great PMC (do NOT hire the cheapest!), but very difficult to DIY remote manage. Vacancy and maintenance factors should be higher than for Class A or B. Homes will have even more deferred maintenance and tenants will be even harder on them.
11) Class D pretty much requires an OWNER to be on location and at the property 3-4 times/week. Most quality PMCs will not manage these properties as they understand most owners won’t pay them enough for the time required and even then it’s too difficult successfully manage them.
***Only exception is if an owner has plan & funds to reposition Class D to Class C or higher.Also, SERIOUSLY consider - do you really have the time to be a DIY landlord or should you hire a PMC?
Good luck with whatever you decide😊
Logical Property Management4.9459 Reviews - Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes4yAre you set on Atlanta as the market you want to jump into? Only reason I ask is because cash flow there is next to nonexistent now. I'm from Atlanta and most of my properties are there. I hardly hear of anyone buying there anymore because most properties have shifted into appreciation plays.
Close to there is Birmingham, and there's been a lot of cash flow there more recently, but even that cash flow is next to gone (prices have jumped a ton and then the interest rates have blown out whatever was left).
BUT, if you're wanting to put work into something, that will help. I would try to find an investor friendly agent wherever you look, one who's savvy on rehabbing, and see where they can point you. - Developer · Decatur, GA · Member since 2011 · 1k+ posts · 1k+ votes4y
In addition to the above, you should subscribe to the Atlanta Business Chronicle. You'll get a lot of info on the growing, changing landscape of greater Atlanta. They will do large inserts on the surrounding counties' fundamentals. Dig through the archives. The recent articles on highest % appreciation zips for the last two years is an example, must read for out-of-state investors.
Atlanta is a sprawling city, so it really helps to pick an area that will likely meet your cash flow and appreciation goals.
- Real Estate Agent · Dawsonville, GA · Member since 2017 · 206 posts · 144 votes4y
@Antonio Cordova
You’ve gotten a lot of great feedback from others. If cash flow is what you are after I would personally look outside of ATL into third tier markets throughout North and South GA. I’m partial to North GA, but that’s just for vanity reasons ;)
I think the first step is to start conducting zoom calls interviewing realtors and pick ONE to work with who can be your partner.
Narrow down a few areas you are most interested in. If they are super far apart maybe ask your realtor you’ve partnered with to refer you to a trusted agent in their network to help tackle that region as well. That way everyone is working as a team to accomplish your goals.
Then come down and go scout out properties with them. Have some figured out that already meet your parameters and be ready to take action!
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