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

8Reply
128 views

Most Popular Reply

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

80 Replies

Jump to latestLatest
  • Developer · Decatur, GA · Member since 2011 · 1k+ posts · 1k+ votes
    9y

    @Michaela G.  How was the meeting?  I didn't get to go, but I'm interested.  Any announcements?

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

    @Rick Baggenstoss , I got there a little late, but I understand that the Westside trail is expected to be finished by July 31st, which is not that far away.

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

    Here's a new article about the development of the Beltline along University Ave - Pittsburgh/Capitol View Manor/Adair Park

    http://www.bizjournals.com/atlanta/news/2017/03/21/beltline-seeks-study-for-redevelopment-of.html 

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

    And another brewery signed on at the Lee+White complex on the westside Beltline 

    http://atlantarestaurants.blog.ajc.com/2017/03/22/wild-heaven-beer-opening-second-brewery-and-taproom-on-beltline/

  • Investor · Atlanta, GA · Member since 2017 · 53 posts · 14 votes
    9y
    The official belt line thread imo.
  • Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    9y
    Originally posted by @Chris Schuler:

    The official belt line thread imo.

     I figured, since I started this thread with the Beltline in mind, I assume that those who are interested in it are subscribed and thus aren't as likely to miss any new developments, as it's become pretty difficult to stay on top of the number of threads on BP

  • Investor · Atlanta, GA · Member since 2017 · 23 posts · 10 votes
    9y

    I regularly run the westside trail and the progress is clear. Last time I was on it i was able to get on at Lena St. in Washington Park and run it all the way to the Kroger on RDA. I eventually had to get off b/c of mud. That was like 2 weeks ago. I image it's probably paved from Washington Park to Kroger. Of course it's paved from Adair Park to those burnt out buildings. 

    All that to say that I can easily see them completing it on time by the end of July. 

    I used to live in Ashview Heights and it was not the best. At.All. However, the influence of the Beltline is already apparent. Curbed(!!!) did a spotlight of a home there this week.  

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

    Something happened yesterday that might have an effect on the intown market: Part of I-85 collapsed due to a fire underneath. North and Southbound lanes are going to be closed for the forseeable future. This is one of the major freeways and will create chaos.

    Traffic along that route, which also feeds to I-400 is already terrible. This is just north of Midtown, so anyone that's working intown and lives in the North or Northeast of Atlanta is going to have to deal with a major clusterf...k for possibly months to come. 

    We always tend to take our freeways for granted and now people are going to maybe rethink the 'work in town and live in the suburbs' lifestyle. How many people have been looking around to buy a house in the N/NE of Atlanta and who will now reconsider? How many people will now look at rather buying a house intown, if they work close to town? 

    These are just my thoughts - what do you think?

  • Investor · Atlanta, GA · Member since 2016 · 51 posts · 28 votes
    9y

    I was thinking about that this morning.  Obviously I'm very new to this so take my thoughts with a grain of salt, but I agree with your thinking that this might cause those looking N/NE to reconsider or at least put off moving.  If that's the case I wonder if it might depress prices (or at least slow appreciation) up there, leading to some opportunities.  

    In the long run I hope this spurs more of the city to be motivated to have good mass transit.  

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

    Third brewery coming to the Lee + White development on the Beltline in West End. This is going to Atlanta's 'beer haven' .  

    http://atlantarestaurants.blog.ajc.com/2017/04/14/...

  • Wholesaler · Indianapolis, IN · Member since 2014 · 137 posts · 40 votes
    9y

    @michaela G. do you think this will work in other areas?

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

    @michaela G. do you think this will work in other areas?

     What exactly are you referring to?

  • Real Estate Investor · Alpharetta, GA · Member since 2017 · 2 posts · 0 votes
    9y
    Originally posted by @Michaela G.:
    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

    Hi Michaela, is there another meetup? This one you shared was in Feb.

    I am a new investor currently residing in North GA.  I am excited about the potential in SW area of Atlanta with the beltline development. Not sure if it is already to late to jump in now to invest but would definitely like to network with local investors and find out. 

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

    @Wai Leong , there are different meetings every month: Pittsburgh neighborhood association, Annie E. Casey Foundation about 352 University and the Beltline has all kinds of meetings that you can find at www.beltline.org

  • Real Estate Investor · Alpharetta, GA · Member since 2017 · 2 posts · 0 votes
    9y

    @Michaela G. Thanks! I will look it up.

    Do you know a good local RE agent who knows the area well and don't mind working with a new investor?

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

    You might want to contact Derrick Duckworth. He's lived in Adair Park for 10-12 years and is also working in Pittsburgh. And there's also an agent that lists some properties for Annie E. Casey foundation, but they can only be bought by owner occupants. You'll have to google them, as I can't put contact info in here.

  • Investor · Atlanta, GA · Member since 2017 · 23 posts · 10 votes
    9y

    @Wai Leong I would also add that if you're considering investing in the area think through how you plan on financing. I've been bidding along the westside beltline in Washington Park, Ashview Heights, Mozley Park, and it's more or less all investors selling to investors. No end users are involved so, loans aren't all that welcomed. The exception, of course is hard money loans. 

    So, come prepared to offer cash - or - have your HML ready.

    mc

  • Santee, CA · Member since 2015 · 17 posts · 1 vote
    9y
    I'm an investor from San Diego and are there still areas of the belt line that can still get good cash flow? Also is it a better strategy to find something that needs work or something that's already in good condition in the area?
  • Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    9y

    @Will Chitwood , it all depends on what you call 'good cash flow'. The better the cash flow, the bigger the risk - so, where's your risk threshold? 

    There're 22 miles of tracks in the ring around Downtown (about 2 miles out) and it goes through many neighborhoods. Some are already established and others are transitional. 

    The transitional get you the biggest cashflow, but you also have to deal with more difficult tenants, who live paycheck to paycheck, so, if there's an emergency, they don't have a safety net and it's often the rent that is not paid. 

    Being long distance, I would think twice about the transitional neighborhoods, as it's difficult to find property managers that are willing to work the neighborhood at a good rate (they usually have minimums per door per month that end up being more in the 20% range or higher.

  • Santee, CA · Member since 2015 · 17 posts · 1 vote
    9y

    I'm looking for around a 1% return like a 100k property with 1000 per month rent. Is that doable? I'd be nice to stay under 160k. I agree transitional neighborhoods are hard. 

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

    @Will Chitwood  Yes, that is doable.

    Keep in mind that, by definition, you are talking about a neighborhood where houses sell for $100k and rent for $1,000.  I don't know if that counts as "transitional," but you're not talking about an affluent neighborhood in a good school district.  You also aren't talking about newer construction or a high quality renovation, since $100k is less than the build cost for a new house.

    On the higher end of your range at $160k, the rent won't be $1,600, it will be more like $1,200-1,300.  This is consistent with @Michaela G.'s observation about cash flow and risk.

  • Investor · Snellville, GA · Member since 2017 · 4 posts · 4 votes
    9y

    If you are simply trying to land in the path of progress with a reasonable cash flow what area's should one look at? I'm very interested in this area myself. I've looked at Peoplestown and West End. Are other areas better for what I'm looking for? I'm interested in single or multi-family (2-4 unit). 

  • Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    8y

    Interesting new article by Atlanta Magazine 

    http://www.atlantamagazine.com/list/where-does-atlanta-beltline-go-from-here/future-atlanta-beltline-4-benchmarks-watch/

  • Real Estate Agent · Alpharetta, GA · Member since 2017 · 85 posts · 30 votes
    8y

    Love the beltline. We stumbled onto an amazing deal a few months ago. Picked up 2 duplexes with 2 beds and 1 bath for $60K each. Put $40K into each so we're all in at $100K a piece. We're done with one and both units are rented out for $895 each side. Finishing up the other duplex shortly and renting those at $895 as well. Would kill to find a few more of those!

  • Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    8y

    Groundbreaking of Pittsburgh Yards on Saturday - the 31 acre tract at 352 University

    https://www.bizjournals.com/atlanta/news/2018/03/07/long-awaited-pittsburgh-yards-project-to-break.html

Join the conversationCreate a free account to reply, vote on answers and follow this thread.