Build my home in ITP Atlanta
Hello BP,
Hope all is well with y'all. Moving with wife kid and dog to Atlanta from Brooklyn in a couple weeks. We have a short term rental for a few months in the SW ITP. We are looking to buy a house in east ITP. Top of the budget would be 800k ish. Want a 4/3 at least with a driveway. In a decent elementary school district (don't need the school for 2ish years). I'm not super excited about buying in a sellers market :). It is what it is. I believe the economy is in shock and am hesitant to buy at the top of our budget when it's not critical that we get that space/location yet. Low interest rates and low inventory i believe is creating artificially high prices. However that is not the point of this post. I'm thinking of getting something 3-400k ish in not a great ITP school district that i can transition to a rental or sell when i get a better feeling for where the market is headed.
On to my question. We are also considering building on a tear down lot or lot. Wondering what peoples thoughts on that are? I have worked in construction my whole life and built homes in TX at the beginning of my career. I was a super for a few years before i went in to ops management. I built about 75 homes ranging from 1500 sqft to 5000 sqft. Can I hire the architect/expeditor and hire the subs? Thoughts? Is that even legal IE do i have to have a builders license in Atlanta? Thanks for your help!
I don't think that the 300-400k homes make good rentals in the Atlanta market from a cash flow perspective long term. I would rather be in 3 150k homes, instead.
Honestly, your best bet will be to chase homes that need significant work in a neighborhood you want to be in. You'll get a decent discount to retail, since most owner occupants want a finished product, and many flippers are pulling back since they can't get funding.
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#4 Tax, SDIRAs & Cost Segregation Contributor
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- Atlanta, GA
Mike -- have you thought about renting a home in East Atlanta for a year or two instead of buying a residence?
It might make a lot of sense in the current economic environment, maybe even more sense if you see yourself moving in ~2 years based on school district.
I always advise anyone who will listen...clients, family, friends...to rent the first year or two in a new city. Take time to get to know all of the neighborhoods and find one that resonates with you. This is especially true with Atlanta. Each neighborhood and OTP suburb has it's own vibe, restaurants, etc.
Best of luck.
Originally posted by @Josh F.:I don't think that the 300-400k homes make good rentals in the Atlanta market from a cash flow perspective long term. I would rather be in 3 150k homes, instead.
Honestly, your best bet will be to chase homes that need significant work in a neighborhood you want to be in. You'll get a decent discount to retail, since most owner occupants want a finished product, and many flippers are pulling back since they can't get funding.
Hi Josh, i agree. 300+ is sub optimal for rentals. Yeah i'm looking to network when i get there to see if i can find some houses that might need some work.
Originally posted by @Eamonn McElroy:Mike -- have you thought about renting a home in East Atlanta for a year or two instead of buying a residence?
It might make a lot of sense in the current economic environment, maybe even more sense if you see yourself moving in ~2 years based on school district.
I always advise anyone who will listen...clients, family, friends...to rent the first year or two in a new city. Take time to get to know all of the neighborhoods and find one that resonates with you. This is especially true with Atlanta. Each neighborhood and OTP suburb has it's own vibe, restaurants, etc.
Best of luck.
Thanks Eamonn, that is great advice. Renting for 1-2 yrs is def on the table. I mean i'm not going to pay a premium right now. Even though we can easily afford it. Not going to get in to a bidding war. My wife and I both bought houses in 2008 and ended up doing pretty well on them but this feels different. I just feel like we are in uncharted territory and i'm very nervous on a lot of levels. I don't want to spend 800k and then regret it when the bottom falls out of the market. I always tell my friends that are pushing buying housing in this market and are saying "throwing money away in rent" - well now might not be the right time if your having trouble getting a place and "there ain't no shame in renting".
Mike, I would concur that if you are in a ST rental that will give you some time to get your balance and perhaps rather than to knock down, possibly look to buy existing and remodel. We are doing two pop-tops in 30309 and you can possibly get the feel of new/your design but not have all the hassle and cost of ground up construction. You can build/remodel your own home without a license but obviously permits are still required and subs/specialties will need to be licensed.
