Atlanta investing

Atlanta investing

Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes

I've seen a number of posts by people that are thinking of investing in Atlanta from out of state, so I'm bringing this up, as it's likely not a topic that's well known outside of the city - The Beltline www.beltline.org

This is a 22-mile ring of railroad tracks, circling around Downtown about 2 miles out. It's been in the making since 1999, when a college student discovered that there are old, mostly unused, railroad tracks circling downtown. He wrote his thesis about the possibility to create a functioning railroad system, which would transform the inner city.

One of his professors liked it and it somehow made it out into the world. First it was just a mythical beast, but it's been put together piece by piece. The city has been buying the land. It's been split up into different portions and parks and jogging paths have been built in stages all around. They've been getting funding from various sources, grants, TADs etc.

So, I would suggest, for any of you who are thinking of buying and holding ITP (Inside the Perimeter) to look how close your proposed properties are to the Beltline. I'm not suggesting to speculate and only buy because you hope the values will go up. But I would say, if you have the choice between 2 properties, that are very similar in ever other regard, I would likely choose the one that was close to the Beltline, because once that is functioning, I believe the values near will increase substantially.

Myself, all of my properties are in a low-income neighborhood right next tot he Beltline. I have great cashflow now, but I expect the value to increase tremendously, once the Beltline is built. The only thing between my neighborhood and the Beltline is a 36 acre vacant piece of land, owned by UPS' non-profit division, who's planning to build a mixed-use development, which would be a further boon to the area, which is right off the freeway.

http://www.yardi.com/blog/news/atlanta-beltline/8095.html

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Atlanta, GA · Member since 2016 · 60 posts · 39 votes
9y

@Michaela G. Great point.  Property values have risen quite nicely lately.

One other underreported aspect is the fact that there has been the addition of short-term/vacation rental demand in areas nearby the Beltline.  For instance, Poncey-Highlands was recently named on of the 15 fastest growing Airbnb markets in the world.

If there are investors looking to pursue a short-term rental investment strategy in the area, feel free to direct message me or call me. I have some experienced individuals in the area who can help you get the place rented out while you are out of state.

See this reply in the discussion

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  • Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    10y

    Here's an interesting article from the New York Times about the Beltline 

    http://www.nytimes.com/2016/09/12/us/atlanta-beltline.html?_r=0

  • Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    9y

    I've seen quite some increases in prices in SW Atlanta, around the Beltline. Prices seem to be equal or higher than what they were before the crash - but before the crash they were falsly inflated through fraud, while right now the prices seem to have grown organically. 

    West End and Adair Park have many sales in the high 200's and Pittsburgh recently had its highest SFH sale at K 170. Investors are now buying to flip in Pittsburgh, which really changes things around here.

  • Atlanta, GA · Member since 2016 · 60 posts · 39 votes
    9y

    @Michaela G. Great point.  Property values have risen quite nicely lately.

    One other underreported aspect is the fact that there has been the addition of short-term/vacation rental demand in areas nearby the Beltline.  For instance, Poncey-Highlands was recently named on of the 15 fastest growing Airbnb markets in the world.

    If there are investors looking to pursue a short-term rental investment strategy in the area, feel free to direct message me or call me. I have some experienced individuals in the area who can help you get the place rented out while you are out of state.

  • Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    9y

    Old post, but I'm bumping it back up, because it's more relevant than ever. SW Atlanta/West End is hot..hot..hot. 

    Here's a project in West End,  Atlanta , that will make a huge impact  

    http://streamrealty.com/monday-night-beltline-brew...

    And here's just a new announcement for a future potential development on the corner of University and Metropolitan - Adair park/Pittsburgh. 

    http://atlanta.curbed.com/2017/2/22/14692978/westside-trail-beltline-property-up-redevelopment 

    In addition they just leveled a huge warehouse on a lot on University, that is presently looking for buyers. 

  • Real Estate Agent · Atlanta, GA · Member since 2016 · 127 posts · 48 votes
    9y

    I was looking at condos on Formwalt last year to buy and rent out and they have gone up about 30k in 12 months....missed the boat on that

  • Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    9y

    @Ryan Johnston , with all the stuff that's happening around there, what's to say that they won't go up another 30k the next 12 months?

  • Real Estate Agent · Atlanta, GA · Member since 2016 · 127 posts · 48 votes
    9y

    @Michaela G. True and I may still pull the trigger on one.  I am not as bullish about the Atlanta market in the SW quadrant as a lot of others.  Mechanicsville will most likely be a safer play than some of the others, will definitely be interesting to see how the Beltline and Turner re-development progress.

  • Salt Lake City, UT · Member since 2016 · 23 posts · 11 votes
    9y

    @Michaela G. how would you currently rate Adair Park by tenant class? I'm looking to get into a house hack situation around the Atlanta area to move closer to work and the town has been on my radar. My only worry is the class of tenants that would be interested in living in the area currently.

    I too am very optimistic on the Beltline development project and its added benefits to the surrounding areas. My friends and I are constantly enjoying the trails and activities along the more developed areas of the project. I think all in all that ITP will continue to see a large influx of upper middle class workers in the coming years. I would love to get into the area now while I can before it booms in the coming years like I think it will.

  • Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    9y

    Keaton, I don't know about tenants there. The neighborhood has come up by owner occupants. They have a big social group on facebook and have lots of interactions and social plans.

  • Dan MahoneyPro Member
    Financial Advisor · Atlanta, GA · Member since 2016 · 256 posts · 350 votes
    9y

    @Keaton Roberson if you are comfortable with living there you will probably also be comfortable with the tenants you can attract.  

    A lot of the appreciation in Adair Park has already happened but there are still a handful of blighted properties to be cleaned up before you'd say the transition is complete.  Multi-family probably won't appreciate as much as single family, so that is something to consider for your strategy.

  • Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    9y

    @Keaton, if you're a little more adventurous and since you're going to live in one side, take a look at Pittsburgh. Yes, some pockets aren't so great and other streets are really cute. Prices are way below Adair Park, even though it's just on the other side of Metropolitan. 

    I live in Pittsburgh myself and have not had anything happen to me. It's not as scary as some people make it out to be. No, it's not yet as gentrified as Adair Park, but I know this neighborhood is on the verge of exploding. 

    I don't recommend Pittsburgh to out of the area landlords, but if you're living in one side, you'll have much more control over what's happening and you'd likely have nice cashflow, even after you pay your rent.

  • Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    9y

    For anyone that's interested - there's a meeting tonight about the Westside Beltline development

    https://www.facebook.com/photo.php?fbid=1010301206...

    I'm going, so if anyone sees me, say 'hi'

  • Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    9y

    @Keaton Roberson , just for your info, here's a duplex in Pittsburgh, that needs extensive work, but it would allow for a renovation loan through Invest Atlanta and 20K in down payment assistance. So, you'd get the purchase price back, put in 50-60k in rehab , all on a loan that allows you to roll over into a normal mortgage. So, maybe your PITI is $ 250/month and you get $ 500-600 rent on one side.

    Only for owner-occupants, because this is owned by the Annie E. Casey Foundation, which is working on elevating the neighborhood. They have a number of properties in Pittsburgh with the same criteria.

    This one is pending, but you never know if it'll fall through and they have other properties.

    https://www.redfin.com/GA/Atlanta/791-Coleman-St-S...

  • Investor · Atlanta, GA · Member since 2017 · 53 posts · 14 votes
    9y
    I love that the first line in that listing is, "NO INVESTORS!" We truly are terrible people...
  • Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    9y

    @Chris Schuler , there is the perception here of investors really hurting the neighborhood and unfortunately, I've watched it myself happening. 

    For one thing, investors destroyed this neighborhood with mortgage frauds in the mid 2000's. 30310 was number one for mortgage fraud in the whole U.S. I think probably more than 50% of the neighborhood ended up in foreclosure because of it. That increased the crime, because there weren't enough people to keep an eye on properties and calling police etc. Houses were torn apart.

    When I started buying, after the crash, there were other investors buying, but keeping the houses boarded up and waiting for the market to come up, which is difficult, if most of it is boarded up. 

    Now, the wholesalers are going crazy here, offering the fixer-uppers at absurd prices and offering at crazy, fake ARV, that newbies, who believe and buy these properties, will not get. Yes, there are houses that sell in the mid to high hundreds, but unless you really know the area, you don't realize that those sales have a background that a normal rehab probably won't get.

    So, there's a reason why there's a lot of mistrust of investors. I get it.

    Annie E. Casey Foundation is working on stabilizing the neighborhood with owner-occupants.

  • Investor · Atlanta, GA · Member since 2017 · 53 posts · 14 votes
    9y
    Michaela G. I totally get it. I've been looking at a lot of properties in the South Atlanta neighborhood and see the boarded up vacant properties that "investors" are sitting on. The big culprit I see down there is VPS, Inc (Vacant Property Services I think.) Seems as though the strategy of some is to just buy at rock bottom, leave properties vacant, and pray that someone brings up the community for them. Contrast that with a "problem solving" approach investor that sees the opportunity to improve a community through updating comps, decreasing abandoned vacant properties, and still making profit (win win win.) There is still plenty of non-zero-sum scenarios down here, but I understand the negative perception; bad apples have spoiled the bushel.
  • Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    9y

    Actually VPS and VIP are companies that board up properties with their metal equipment for investors. They're not usually the owner

  • Smyrna, GA · Member since 2016 · 14 posts · 1 vote
    9y
    Wow this thread has been really informative. I purchased a home near the new stadium and we're currently renovating it to rent out. This seems to be the best area to be in right now, especially for beginners like me. Thanks for all the great information everyone!
  • Investor · Atlanta, GA · Member since 2017 · 53 posts · 14 votes
    9y
    That would make sense, Michaela G. as I see homeless walking in and out of the vacant properties that aren't boarded up and metal reinforced.
  • Salt Lake City, UT · Member since 2016 · 23 posts · 11 votes
    9y

    @Michaela G. that definitely looks like something I would be interested in. How common are the Invest Atlanta program homes coming available? I wasn't aware of them until your post. I am going to try and make it to the meeting tonight so I can talk to you then if I see you!

  • Dan MahoneyPro Member
    Financial Advisor · Atlanta, GA · Member since 2016 · 256 posts · 350 votes
    9y

    @Chris Schuler Often times the "investors" are just leaving the properties to rot and the Atlanta Police Department code enforcement division has to board up the house or pay VPS/VIP to put up their metal barriers to keep squatters out.

    There is even a program to use jail inmates to do this work.  Even with this program there are way too many open/vacant properties for the City to keep up.

    When the City boards up an abandoned house, they put a lien on the property for the cost of the work.  However, in my observation, they do not try to foreclose on the lien, they just let it sit.  Every once in a while they will demolish a house if it gets really dilapidated.  

    The owners of blighted properties are supposedly subject to criminal prosecution, but again, as far as I've observed, the City does not put a lot of energy into finding and charging the owners criminally (with one notable exception).  I tend to think issuing bench warrants for arrest would get these owner's attention.

  • Investor · Atlanta, GA · Member since 2017 · 53 posts · 14 votes
    9y
    Relevant, Dan M. , since we're talking about South Atlanta... http://www.ajc.com/news/crime--law/jailbreak-atlanta-inmates-escape-sneak-back/G17XWRFtFTXU20jYCE8XvN/
  • Atlanta, GA · Member since 2016 · 57 posts · 16 votes
    9y

    @Michaela G. The link to the meeting you posted is not working.  Do you have another one?

  • Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    9y
    Originally posted by @Michael B.:

    @Michaela G. The link to the meeting you posted is not working.  Do you have another one?

    Sorry, was from a private FB group. This should work 

    http://beltlineorg.wpengine.netdna-cdn.com/wp-content/uploads/2017/02/Westside-Southwest-Study-Group-WST-Construction-Update-and-Purple-Line-2.27.17-1.pdf 

  • Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    9y
    Originally posted by @Keaton Roberson:

    @Michaela G. that definitely looks like something I would be interested in. How common are the Invest Atlanta program homes coming available? I wasn't aware of them until your post. I am going to try and make it to the meeting tonight so I can talk to you then if I see you!

     The homes are owned by the Annie E. Casey Foundation, who work with Invest Atlanta on the financing end. AECF also owns the 31 acre lot at 352 University Ave and they hope to start building this year. They list those rehab homes with the same agent, so, you might want to contact her: 

    Tia McCoy

    www. areawestrealty .com

    not allowed to post contact info

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