Hi all, I'm new to BiggerPockets, and have been listening to the Podcasts. There is a ton of great info in there and I'm enjoying learning about real estate investment.
I live in the Atlanta, GA area, and have been trying to do some research on the market opportunity in the area, but have come across some conflicting information. Some articles I've read said Atlanta is a hot place to get into real estate investing, because there is a shortage of homes available, while others have said that Atlanta is a poor place to invest compared to other cities because of increased costs for labor, rehab, etc.
I was wondering what the BP community thinks and what they would advise.
My current goal is to get as quickly as possible to ~25 single homes (which is predominant in my market, not a lot of multifamily homes currently in the market) that I hold and rent, as the profit from this would be enough to supplant my current salary, allowing me to go full time into real estate. Is this doable in the Atlanta market?
I know this is a broad question, but I'm just looking for peoples opinions on whether they'd go for it.
Thanks in advance.
@Linda R Harley Both of your assumptions are correct. Atlanta is a hot market. But some people just stay away from "hot" markets because of the low inventory, high labor costs, overall competition, etc...
It will certainly take hard work and resourcefulness on your part but your goal is very doable!
@Linda R Harley Your goal to have 25 SFR in and around your neighborhood that are cash flowing is certainly an attainable goal.
People are still investing in Atlanta every day. It is a hot market which means that what you might find immediately on the MLS might not be the best way to find your deals. Although there are still deals to be found that way, the number one thing to do is just get yourself out there and start hunting.
Have you narrowed down your criteria? Is it a price point per home? Do you want to do any renovation? How much cash flow much each home bring in? Is there a total ROI you are looking to achieve? Will you be buying the houses in cash or with financing? Do you currently own your primary residence?
Lots of questions to work through that will help you be able to really dial in your search. Be persistent in your search and ready to jump when the property that fits your criteria presents itself.
@Josh Hooper those are all excellent questions and ones I have been thinking about. Don't have all the answers yet as I'm still doing my homework. I think my biggest fear is screwing up and losing money unnecessarily. I gues this makes me a cautious buyer. I want to cross all my i's and t's before I dive in.
As a follow up question... I've been wondering what are the pros/cons of hiring a property manager? And what criteria to use in selecting one? I'm sure there is a post about the topic somewhere, I've just not gotten there yet. What's your opinion?
@Linda R Harley I didn’t mean to come off as if I was interrogating. But those are questions you should think about. Being a cautious buyer is necessary but you need to be ready when the deal that fits the criteria comes along, otherwise you might miss out.
Property management companies allow your income to be a lot more passive. People normally mention they prevent you from taking the middle of the night call about an overflowing toilet (I’ve never had that call). I would recommend self managing your first few rentals to understand what it takes and what you should expect. You may love it or hate it. At some point property management will be necessary. With more properties, you may get a better deal or just be able to afford the cost better due to diversification across properties.
There are certainly posts about selecting a property manager. I would almost say that is a detail I would not get super bogged down in before your first purchase. I would work more towards figuring out what you need to know to purchase your first property. Once you own several, a pain point will show up that will Make property management more of a priority.
Best of luck and I hope to hear of your successes in the not too distant future.
@Josh Hooper thanks for the solid advice. I appreciate it.
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