All Forum Posts by: Kevin Polite

If you know a Realtor they can look it up for you as well.

Good thread here. I'll comment on "transitional' class C/lower B in Atlanta. What I've found is that many investors will purchase in these neighborhoods and wait for appreciation and rent to class D/lower C tenants, when if you put a little more money you'll find better tenants who like living in these areas because they are close to more desirable areas with restaurants/etc, but can't afford those areas. Many don't have good schools, but most of the renters and buyers don't have kids yet or are single or gay, so that isn't so much of an issue for them.  Along with better tenants you get higher rent. Now this is a totally different animal than suburbs where it's easy to compare House A with House B, C & D.

You'll have a neighborhood with $500k and $100k on the SAME block. I think it's difficult to purchase in these areas, but can be very profitable.

I have a home in East Atlanta all of my tenants have been under 32 with good jobs (current one works at Delta in IT) and they love living in this area. On the otherhand I had a someone coming from Alpharetta who once they got near the n'hood called and made an excuse why they couldn't come. Perception of crime is as much of a factor as crime itself.

Stay out of Belevedere Plaza 'cause I want at least 2-3 more homes there and the prices have already risen about 20-30% on investor grade homes in the last couple of years.

The time to buy in transitional homes are when they are exactly that, but you must be very careful because for instance off Glenwood/Candler there is one street even I was a little nervous, but go 2 blocks and you have $400k homes. I think that's why it's so fun to invest in these areas.  Plus the neighbors will love you and watch out for your homes if they see you are improving their neighborhood. I give them my number and encourage them to call if they see anything during or after renovations.

3 of my homes are within a 1/4 mile of each other with 2 of them next door to each other. They are in a neighborhood that is close to an intown Atlanta city that it one of the most sought after cities. As this area has become very high priced, the areas surrounding it are seeing price increases. I've always believed that you should include appreciation in your strategy. I would never invest in an area, right or wrong, that I didn't believe had room for appreciation. I purchased 2 of the properties from another investor that was sick of landlording and improved on the property for the tenants that wanted to move to that area as opposed to a few that were renting in this appreciating area. So far so good. I guess get back with you on that in 5 years.

if anyone uses Ikea cabinets they are selling the frame and doors for 75% off through Feb. 1 with caveat they are changing their entire line Feb. 2. These are so easy to put up because they have this fantasic rail system, so someone could install them alone, but you have to assemble the cabinrts. My contactors don't like but they look exeptional, And hold up very well, but wouldnt use in Class C properties. 

@James Park 

sound advice. Where do you find up to date demographic data like you're describing? It's easy to find census data, but not less than then the latest census data especially on the zip code level.

@Andrew Cordle count me in!

@Paul Timmins have you attended GAREIA or Atlanta REIA? There are several meetups within both of those groups.

SE/SW city of atlanta or the metro area? 

 My accountant insisting everything before going into service, but he is very conservative. Some on BP say if you repair a HVAC during this time you can deduct in that year. Not being accountant I really believe it's how aggressive you want to be. I understand IRS just came out with a new huge book indicating what can and cant be written during rehab

 Ben,  I've followed this thread and you put it perfectly. I always wondered why anyone would purchase a property that cash flowed, but gave no consideration to appreciation. It seems if you keep a property for any length of time and if the area is not at least stable your rents will begin to decrease as the area becomes less desirable.