Best "Off Market" Cities to buy and hold in Metro Atlanta

5 Replies

My husband and I are getting mentally and financially ready to buy our first investment property in Atlanta. We are looking to purchase our first duplex to buy and hold. Initially we have always thought about investing in the Marietta/Kennesaw area or in Norcross. However after digging into BP, many investors recommend investing in “off market” areas. Can someone let me know what cities these would be? We are looking at purchases in the 70-80K range and dont mind properties in need of heavy renovations but are basically looking for decent tenants. We don’t need amazing tenants, just decent. We also need an area where I would be safe going alone (a female).

We have thought about South Atlanta but are concerned with the quality of tenants. Is there a middle ground between South Atlanta and East Cobb for example?

Wow @rossana 

Frist welcome to BP. Few words in your statement that sounded my newbe alert that I once was and that if you are not careful, will lead you to people in your path to financial freedom that will separate you from your money.

1. 70-80K range for a rental? In my opinion that is to high unless it needs no renovations. If you look at the current market rents (sec 8) in cobb county rents are $900 to $1,400 based on the amount of rooms. If you are getting a mortgage or using OPM (other peoples money) for long term financing (like most mortals do). You are looking at a monthly morg. Payment of $550 to $800 per month plus property tax, insurance, etc. You are looking for an additional $200 to $400 per month once you do the math this leaves almost non, or no profit for you.

I seek houses in Cobb county (I like short drives to my properties) were the NOI is $300 to $500 per month at a minimum. For this reason, I seek houses between $30k to $60k

2. Heavy renovations? Unless its a flipping, I don't believe in "massive renovations" $10k tops. Unless I acquire the property at a massive discount the numbers just will not work to buy and hold unless you are doing some type of "subject to" arrangement. 

 Run the numbers of a $80k hous with $20k to $30k renovation and you will see that current market rents are not sufficient to cover the debt and make a dicent profit for the amount of risk.

3. Don't need amazing tennents? I seek life long tenants. If you don't do the same, turn over cost will eat you up.

It is not my intent to put your hopes down ( I personnaly like to move with care) but the market is hard now.  The only properties that currently meet my criteria without doing heavy marketing are in Austell, Mabilton, Powder Springs some areas of Marietta and Douglass Ville.  I don't touch Atlanta since not familiar with the market and it is too long of a drive for my trouble.. Hope this helps

@Rosanna Gonzalez  pay attention to what's going on in metro Atlanta and think about your target tenant. Between the new football stadium and trolley, the in town population is changing. Also think about the implication of the new Braves stadium in Cobb county. In town students (ga Tech, GSU, Morehouse, Spelman, CAU) are always looking for houses but we all know students aren't long term tenants. Consider your end user and find the right location for your market.

@Rosanna Gonzalez  - What @Luis Montanez  has written is very close to my view of the Cobb County market as well, read it over and over until you grasp it all because I agree with just about everything he is saying there. 

Also - might you be misinterpreting what "off market" means? To me that means homes for sale that are NOT listed on the Georgia MLS or FMLS services. Could it be you are open to 70k-80k purchases because those are the list prices you're seeing when looking up houses online?

If I'm right, you are doing exactly what I did with my first rental properties. Went to the MLS and picked out one I liked. Now that I've spent more time learning about investing I understand that many deals get done without ever seeing the MLS websites, and the keys to long term success include knowing how to find and close those types of deals.

I'm going to send you a PM with a book I recommend you and your husband read as you start your journey. It will help you get your minds right about what truly makes for a good long term real estate investment. Good luck! 

@Rosanna Gonzalez I will love to meet to talk about REI (real eastate investing). However, it is important that you establish a good foundation To short the learning curve and you don't get a nose bleed when we talk about so many different strategis, acronyms and consepts that exist within this one aset category. Some books that I personally recommend (I like audio books) are:

1. Loop holes to real estate investing

2. The Millionaire Real Estate Investor

3. Money Master the Game (new by Tony Robbins)

For me REI is one of several asset classes that I invest in and (as you will learn) Buy and Hold is an income acelarator for your financial future and a tax reduser for does like my self that seek ways to minimize tax liability.

PM me after you read this books and would like to talk about REI :-)

@Luis Montanez  ...

Thanks for the reccomendation...We are going on vacation in a few weeks and Ill make sure to bring these along with me for fun reading. Ill reach out once i have a better understanding of the lingo

..

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