Has anyone done a neighborhood comparison for atlanta to compare the average rent to purchase price ratio? Or maybe an average return on investment analysis for atlanta neighborhoods? Just curious. Not sure if I am asking the request ion correctly. I guess I am looking for advice on which neighborhoods are best for rental properties in atlanta. I think something below the $150k price point on average would be ideal.
Define "best." Best cash flow? Best quality tenants? Best mix of the two? It all just depends.
For me, the best would be a cash flowing property with the best chance of above average rent and house value appreciation, reasonable turnover (8%), and well-understood maintenance needs.
Modest rehab would increase rent. Major rehab not required.
Long-term, I'd like to sell the rental so it also has to have some longer term "flip appeal" ... I think I just coined a new phrase. :-)
@Dan Hooper Not all my holds emphasize the same criteria, but the portfolio tends to strike a nice balance of these goals. Point being, if you're buying several, don't stall out looking for a perfect rental but average it out over several.
@Heather W. I think I would start with best quality tenants, then compare at the cash flow. I am not sure how to find quantitative data on how good tenants are though (may just be my inexperience), but I would think there would be enough data available online to do a quantitative analysis of the atlanta market and break it down into submarkets, or neighborhoods, etc. I am a bit new to real estate investing and thought maybe that analysis had been done before. What do you think?
Atlanta is really dozens of micro-markets, each different than the next. It's very difficult to compare different parts of Atlanta using strictly financial measures.
In my experience, Atlanta was an *amazing* buy-and-hold market up until about 2 years ago. Then, the large institutional investors started moving in, as did the out-of-state investors who were "tipped off" to the great deals the city had.
When I left last summer, it was very difficult to find good deals under $150K in most parts of the city, as large investors were bidding everything up. While I don't live in that area anymore, I'm still somewhat familiar with the market (from other investors I know), and I don't think things have gotten much better in the past year from a buy-and-hold standpoint.
There are always deals in any location, but Atlanta is unlikely to be the place to find great publicly listed deals on the MLS; instead, you'll want to look for off-market deals where you're not competing with the institutional money or the strong local investor presence.
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