Buying first property in booming market

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Buying first property in booming market

Scott Chapman
Atlanta, GA · Member since 2019 · 2 posts · 0 votes

I am currently in my “research” phase right now. Doing a lot of reading on BP and am currently in the middle of Brandon Turners book on rental properties. Figured I would pick some of your brains for a bit.

I will be a first time buyer in 2020. Going in, do you think this is a bad time to purchase “Ready to Rent” properties seeing as the market is at an all time high? Do you think the market will dip in 2020 as many predict?

I don't know if I'm ready to try the "BRRRR" method simply because I don't know if I can take on a rehab at the moment. So, as I see it my best option currently is to buy a property that is ready to be rented upon purchase.

The main issue is finding a property at a good price. I live and will be buying in the Metro Atlanta area and properties prices here are high, to say the least.

Thoughts?

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Tamara Deering
Real Estate Agent · Austin, TX · Member since 2019 · 235 posts · 194 votes
6y

@Scott Chapman

I don't know the Atlanta market but in the Austin market, another booming market, homes that have an existing tenant tend to sell for slightly below market.  This is because they don't offer the immediate equity boost of being able to raise the rents and fix up the property, nor do they allow an owner occupant to move in.  If I were you I would investigate these opportunities and see if there is something like that in Atlanta that would work for you.  If most of your mortgage was covered for the first year even if your not cash flowing huge numbers the deal could make sense.

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  • Tamara Deering
    Real Estate Agent · Austin, TX · Member since 2019 · 235 posts · 194 votes
    6y

    @Scott Chapman

    I don't know the Atlanta market but in the Austin market, another booming market, homes that have an existing tenant tend to sell for slightly below market.  This is because they don't offer the immediate equity boost of being able to raise the rents and fix up the property, nor do they allow an owner occupant to move in.  If I were you I would investigate these opportunities and see if there is something like that in Atlanta that would work for you.  If most of your mortgage was covered for the first year even if your not cash flowing huge numbers the deal could make sense.

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  • Jordan MoorheadBusiness Member
    Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
    6y

    @Scott Chapman I don't think it will dip but I don't have a crystal ball either so who knows?

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  • William Robison
    Rental Property Investor · Dawsonville, GA · Member since 2019 · 16 posts · 9 votes
    6y

    @Scott Chapman I’m not sure where you live at in the metro Atlanta area. Have you looked at house hacking or Airbnb? Projected growth is up the hwy 400 Corridor. Forsyth County is projected to have its population double in size by 2050. The prices might be high now, people also said that many many years ago when they were buying real estate and thought the market was high then.

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  • Brian Bourdua
    Member since 2019 · 6 posts · 4 votes
    6y

    Hey there Scott,

    I do like north Atlanta a lot, especially along the 400 corridor, but I wouldn't recommend Forsyth for Air BNB. A while back the commission voted to ban Airbnb. I heard that the ban would take effect in 2020, but haven't heard anything recently on the subject. Either way, I'm pretty sure the ban is coming at some point. If you do find a property you want to purchase I would make sure you have multiple strategies if you are going to try Air BNB in Forsyth. Make sure the cash flow is suitable for you as a rental or an STR. Here is a link to an older article on the subject:

    https://www.11alive.com/articl...

    Another spot you may want to consider is Gainesville.  It has a pretty strong rental market and should be growing in the coming years.  Good luck!

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