Atlanta Investors out there??

Question

Hey all, we own a property just outside Atlanta and need a feel for where the market is headed. Any insights??

The home is 23 yrs old and needs some minor cosmetics, however plumbing and roofing may need attention as well. Due to PM costs, we are negative each month. Conversations with agents in the area said that the market is picking up. However, our PM took 3 months to rent the house last year and advised against a rent increase this year due to high inventory.

Let me know your front line experiences. Thanks!

Frank Iglesias · Answer

Hi Vanessa.  Depending on where the house is, prices are going up.  The odds are in your favor that prices have increased but would need to know where it is specifically to answer that.  Rents have gone up in some areas but generally speaking are relatively stable.  Everything is area specific around here.

Curt Smith · Answer

Hi Vanessa,  Sorry to hear of your negative cash flow situation,, and being stuck with a property manager.  We manage our own rentals and thus keep that 10% extra positive cash flow.

We see the cost of finding REO inventory sky rocket and availability drop, but selling prices of finished rehabbed properties only somewhat increase.  IE a squeeze on the flippers profit.  Rents haven't gone up yet that I've seen.  Creative Loafing had a piece where Hedge fund management of their rentals, were jacking up rents in big steps.  This hasn't worked through the system if it does at all.  To me it "feels" like a glut of rentals in the lower rent area of town.  Good school districts will fair much better since there's fewer properties and lower vacancy.

Have you looked into a 1031 exchange of your property for one that is closer so you can manage it yourself?

Good luck,  Curt

Vanessa R. · Answer

Thanks, Curt! Sounds like investors are feeling the pinch there. We're feeling it in Cali too. Do you know of any cost help for the repair work? There's no equity in the home either. Appreciate all the insights!