buying duplex in Atlanta area
Member since 2022 · 48 posts · 10 votes
buying duplex in Atlanta area
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Investor · Cleveland · Member since 2021 · 247 posts · 240 votes
3yHey Doug,
I'm working with a few clients right now who are interested in a similar strategy. We've found the traditional "live in one half and rent out the other" is a little bit more difficult to accomplish these days but we've had luck pivoting to buying a single family home with an in law suite with separate access. This accomplishes the same thing, but it leaves more of the house available to lease so you can get higher rents and better cash flow.
Hope that helps. Feel free to reach out if I can help! (Contact info in bio)
26 Replies
- Real Estate Agent · Atlanta, GA · Member since 2018 · 24 posts · 19 votes3y
Hey Doug, I am a realtor in ATL and invest myself and currently have 10+ units in Atlanta.
When it comes to investing in real estate, cash on cash return is an important metric to consider.
Multifamily properties, including duplexes, can be competitive in the Atlanta area. However, there are also single family properties that can offer great returns as well.
As for navigating buying a duplex with tenants, it's important to do your due diligence and review the current lease agreements to see if they will fit your plans as a landlord. If vacant have a plan for how you will screen tenants or manage.
If house hacking is in the plans that can be a great strategy.
Please feel free to DM me if I can help in anyway
Hope that helps!
- Member since 2019 · 17 posts · 4 votes3y
Agree with the other poster. Duplexes are unpopular in the Atlanta and metro. You will not find many so usually they're over priced. When you run the numbers they don't work.
- Investor · Cleveland · Member since 2021 · 247 posts · 240 votes3y
Hey Doug,
I'm working with a few clients right now who are interested in a similar strategy. We've found the traditional "live in one half and rent out the other" is a little bit more difficult to accomplish these days but we've had luck pivoting to buying a single family home with an in law suite with separate access. This accomplishes the same thing, but it leaves more of the house available to lease so you can get higher rents and better cash flow.
Hope that helps. Feel free to reach out if I can help! (Contact info in bio)
- Real Estate Agent · Atlanta, GA · Member since 2020 · 1k+ posts · 1k+ votes3y
@Doug Davis, I concur with the others above, you're going to have a helluva time acquiring an owner-occupied small multifamily, especially if your pre-approval/budget is around $300k-$400k, the main acquisition cost for many investors. As noted by Ben, I highly advise that you target single-family homes with in-law suites or additional living space that can be converted into a separate unit and sourced as an STR via Airbnb or on another short-term rental platform. Do you have a specific market in mind? Needless to say, the metro Atlanta market is massive.
- Real Estate Agent · Dawsonville, GA · Member since 2017 · 206 posts · 144 votes3y
I concur with the above posters on the in law suite situations. Another option if could be building an ADU, currently in Atlanta, ADUs are allowed on R-5, R-4, and R-4A-zoned lots.
However, I believe there is a current proposal to expand that, not sure what the latest is on that measure.
- Member since 2022 · 48 posts · 10 votes3y
Thanks all.
I hope to get something this summer or later. Just looking at realtor.com now, I see some million dollar properties and not much else. Maybe I'm not sure what to look for when finding a property with an in-law suite. Or should i be building something?
Could someone point me to an example? And/or tell me what to look for in a listing for the type of house you are referring to?
Thanks
- Real Estate Agent · Atlanta, GA · Member since 2020 · 1k+ posts · 1k+ votes3y
@Doug Davis, building is going to be much more of a hassle/headache than buying a resale property. As I asked above, what markets have you been looking into? Location is crucial when it comes to real estate acquisition and adequately valuing a property. If you're only receiving notifications of properties priced at a million or more, you must be looking in a high-demand area. First things first, you need to get pre-approved by a lender to verify how much you qualify for. Once you have an established budget, it's much easier to include and rule out markets. Next, connect and work with an investor-focused agent, preferably, someone who works with house hackers like yourself on a routine basis. They know the market, and what works and what doesn't. Summer will be here before you know it. From everything I've seen/analyzed, I don't expect the market to slow down much. Are you currently renting?
- Real Estate Agent · Atlanta, GA · Member since 2020 · 1k+ posts · 1k+ votes3y
@Doug Davis, here's an example we're all referring to, link. Talk about a sweet house hack deal.
- Member since 2023 · 24 posts · 7 votes3y
Hey Doug, I have a duplex for assignment in Atlanta 30310. One side is on a month to month.
- Member since 2022 · 48 posts · 10 votes3y
Quote from @Michael Dumler:
@Doug Davis, building is going to be much more of a hassle/headache than buying a resale property. As I asked above, what markets have you been looking into? Location is crucial when it comes to real estate acquisition and adequately valuing a property. If you're only receiving notifications of properties priced at a million or more, you must be looking in a high-demand area. First things first, you need to get pre-approved by a lender to verify how much you qualify for. Once you have an established budget, it's much easier to include and rule out markets. Next, connect and work with an investor-focused agent, preferably, someone who works with house hackers like yourself on a routine basis. They know the market, and what works and what doesn't. Summer will be here before you know it. From everything I've seen/analyzed, I don't expect the market to slow down much. Are you currently renting?
So here is the full story: My sister is renting and has been for a while. Basically, her job doesn't pay much. She has been a good tenant for years, but wants a change. We recently inherited a house and are about to rent it out, and would like to continue with investment properties. I have some cash if needed. Her job is near the Atlanta Zoo and she currently lives in Lithonia. She would like to buy a home, but she doesn't want to do a one unit. This is something we want to work on together.
It seems that when I add "In law suite" to a search, the prices go up significantly. For the low cost ones, they don't actually have an in law suite, they just somehow show up in the search. Maybe it's that I don't know what to search for. Or maybe there is nothing specific to search for, I just have to look at many listings. We will get an agent, but I want to see what type of properties people are referring to so I can be more educated.On realtor.com, I am looking at a very large area, Stockbridge, Lawrenceville to Canton etc. just to get some practice seeing what's out there. However, I suspect that she will be ok with anywhere in Metro Atlanta except something too far north such as Canton. We will discuss that though.
She is going to look into an agent and someone to help with the loan. Previously loan officers have not been very optimistic, probably due to her income. Also, I'm not sure if the agent she was talking to previously has worked with any investment properties.
Thanks for the advice
- Member since 2022 · 48 posts · 10 votes3y
Quote from @Michael Dumler:
@Doug Davis, here's an example we're all referring to, link. Talk about a sweet house hack deal.
Ok thanks. I see it says this: "Basement has 2 separate apartments; one studio and one 2 bedroom"
To make sure I understand, does this mean that this has three units? The main one and two in the basement?
I'm not sure if I would know how to look for something like this. A Realtor may know, but I would like to be able to find them myself as well.
- 3yRyan ThomsonBusiness MemberReal Estate Agent · Colorado Springs, CO · Member since 2018 · 1k+ posts · 1k+ votes
House Hacking is amazing. Here are some resources I found really helpful on my journey.
1. For podcasts I really like the Huse Hacking episodes on Bigger Pockets Podcast and other channels. Here is a playlist with the best House Hacking Podcasts I’ve found: https://open.spotify.com/playlist/4A6uLsPfdWEMmJhG4TSjyb?si=743bb403548f47fb
2. Great beginners guide: https://www.biggerpockets.com/blog/wp-content/uploads/2022/08/Ultimate_Beginners_Guide_BiggerPockets.pdf
3. The Book on House Hacking Strategies by Bigger Pockets is also a fantastic book
4. Happy to talk if you want more advice
5. Connect with a realtor who understands house hacking and has invested themselves
6. Connect with a lender to see what you qualify for and how you can improve that situation
7. Go to local Real Estate meetups and learn from people there
The Assumable Guy544 Reviews - Real Estate Agent · Dawsonville, GA · Member since 2017 · 206 posts · 144 votes3y
@Doug Davis
Not to toot our own horn, but I really suggest you work with an agent on here! We know this story and how to navigate these waters.
We know what lenders work best for your situation. An investor savvy agent like any of the ones on this page will take a lot of the guesswork out of your search.
Just a thought ;)
- Member since 2022 · 48 posts · 10 votes3y
Quote from @Holly Barrett:
@Doug Davis
Not to toot our own horn, but I really suggest you work with an agent on here! We know this story and how to navigate these waters.
We know what lenders work best for your situation. An investor savvy agent like any of the ones on this page will take a lot of the guesswork out of your search.
Just a thought ;)
We definitely will, but I want to have a general idea of what I'm looking for. Thanks.
- Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes3y
Hey @Doug Davis - My advice is super simple and seems like you are already doing it.
1. Educate & learn (read, listen to podcasts, ask questions)
2. Network (local events are best, BP, Facebook groups, coffees w local investors)
3. Take action and be decisive
You should definitely connect with my partner @Bolanle Ogunmakin who is lives and is investing in Atlanta. We are a Chicago-based GC-tech (general contracting technology) company but expanding into the Atlanta market where my partner is.
Quality Builders4.968 Reviews - Realtor · Atlanta, GA · Member since 2023 · 3 posts · 2 votes3y
Quote from @Doug Davis:
Hi All,
This summer, I would like to buy a duplex to live in and rent half.
I subscribed to BiggerPockets so I have access to the tools.
I read this:https://www.biggerpockets.com/...
Is there any specific advice you would have about buying a duplex in the Atlanta area, or building one if that is possible/feasible?
Also, many duplexes that i see for sale already have tenants. Not sure how to navigate buying one specifically to live in. I'm not seeing many great options online.
Any thoughts would be helpful.Thanks
Hey Doug, Atlanta Realtor here and I would echo the above statements. Many of the duplexes are overpriced here in Atlanta but I do dig FSBOs and may have some options for you. We can develop a strategy to match the numbers you're looking for, please let me know if I can help : )
- Member since 2019 · 4 posts · 1 vote3y
Doug. My only 2 cents is I do love duplexes and own a few. You have to search hard o get a good deal. While duplexes tend to be harder to sell retail then a single family for obvious reasons..... cash flow can be really good. Wish you luck on your journey. Looks like a lot of good people on this thread could help you......
Quote from @Doug Davis:
Quote from @Michael Dumler:
@Doug Davis, here's an example we're all referring to, link. Talk about a sweet house hack deal.
Ok thanks. I see it says this: "Basement has 2 separate apartments; one studio and one 2 bedroom"
To make sure I understand, does this mean that this has three units? The main one and two in the basement?
I'm not sure if I would know how to look for something like this. A Realtor may know, but I would like to be able to find them myself as well.
Be careful with "basement apartments". It will be a hard sell for quality renters if the "bedrooms" and living area do not have windows, walls are too low or it overall feels dingy. Also, different counties and cities have different rules for house hacking. For example in Dekalb you must live in one of the units. Others have regulation and limits on how many people can live in it.
Quote from @Adah N.:
Quote from @Doug Davis:
Quote from @Michael Dumler:
@Doug Davis, here's an example we're all referring to, link. Talk about a sweet house hack deal.
Ok thanks. I see it says this: "Basement has 2 separate apartments; one studio and one 2 bedroom"
To make sure I understand, does this mean that this has three units? The main one and two in the basement?
I'm not sure if I would know how to look for something like this. A Realtor may know, but I would like to be able to find them myself as well.
Be careful with "basement apartments". It will be a hard sell for quality renters if the "bedrooms" and living area do not have windows, walls are too low or it overall feels dingy. Also, different counties and cities have different rules for house hacking. For example in Dekalb you must live in one of the units. Others have regulation and limits on how many people can live in it.
*in Dekalb homeowner has to live in main house or ADU or basement apartment as their primary resident.
- Member since 2022 · 48 posts · 10 votes3y
Quote from @Adah N.:
Quote from @Doug Davis:
Quote from @Michael Dumler:
@Doug Davis, here's an example we're all referring to, link. Talk about a sweet house hack deal.
Ok thanks. I see it says this: "Basement has 2 separate apartments; one studio and one 2 bedroom"
To make sure I understand, does this mean that this has three units? The main one and two in the basement?
I'm not sure if I would know how to look for something like this. A Realtor may know, but I would like to be able to find them myself as well.
Be careful with "basement apartments". It will be a hard sell for quality renters if the "bedrooms" and living area do not have windows, walls are too low or it overall feels dingy. Also, different counties and cities have different rules for house hacking. For example in Dekalb you must live in one of the units. Others have regulation and limits on how many people can live in it.
Ok thanks. So, in Dekalb, if the owner moves out, there's no way to legally rent both units separately?
- Doug
- Atlanta, GA · Member since 2016 · 13 posts · 12 votes3y
@Doug Davis
So question for you regarding the property you have in the above link. Why would this not be considered a triplex. Where is the difference or is it likely that there is only one meter for utilities so owner would likely have to pay for utilities. Also how do you find out if this is allowed in a certain area. I recently saw a property in Lawrenceville where there was enough space to do such a thing. My thoughts were to do a ground level 3/2 long term rental and use the basement to have a small 1 bedroom midterm rental since it was close to NORTHSIDE Gwinnett
- Atlanta, GA · Member since 2016 · 13 posts · 12 votes3y
@Adah N.
Very good point. Where can one research what the regulations are?
Hey I own a duplex in West End Atlanta. I was househacking for a while but will need to move. I would be willing to work out a deal if you are interested. One unit is rented below market and original. The other unit is where we live and I have put in a good bit of work there. DM me and we can talk if interested.
Quote from @Doug Davis:
Quote from @Adah N.:
Quote from @Doug Davis:
Quote from @Michael Dumler:
@Doug Davis, here's an example we're all referring to, link. Talk about a sweet house hack deal.
Ok thanks. I see it says this: "Basement has 2 separate apartments; one studio and one 2 bedroom"
To make sure I understand, does this mean that this has three units? The main one and two in the basement?
I'm not sure if I would know how to look for something like this. A Realtor may know, but I would like to be able to find them myself as well.
Be careful with "basement apartments". It will be a hard sell for quality renters if the "bedrooms" and living area do not have windows, walls are too low or it overall feels dingy. Also, different counties and cities have different rules for house hacking. For example in Dekalb you must live in one of the units. Others have regulation and limits on how many people can live in it.
Ok thanks. So, in Dekalb, if the owner moves out, there's no way to legally rent both units separately?
- Doug
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