2nd Chance Venture,
Contractor, Marietta, GA
Now is certainly the time to invest in Atlanta real estate. A $100k will buy you a pretty nice property...there's 4bed/3bath in east cobb for about that: http://www.youtube.com/watch?v=EWNm9NBQEsQ
Alot of newbie investors gravitate towards SW Atlanta and similar areas where home can be purchased for $20k...sometimes less. The issue there is as Robert stated below...who wants to live there? In transitional neighborhoods, your tenants are marginal and it is difficult to keep the property occupied and rented...meaning...they actually pay the rent. I spent 3 years in that market handling rentals, brokering and actively investing. SW will do well 5 to 10 years for now...but you have to think in terms of "I am at "a" when I invest and need to get to "z" when I sell....it can be a long & difficult path between the two points. I lived in a transitional neighborhood and it's just too difficult for most investors to make any money there short term....longer term, if you have the stomach for it, I think the payouts will be there on houses like one in the historic district, mostly renovated which you can buy for about $40k. This one was purchased by an investor 2 years ago and appraised at the time for $200k.....now it's prob worth about $90K for a 4bed/2.5 bath
Finding good property managers for lower priced properties is difficult at best. There just isn't any money in it to attract good talent. Try to network with other investors online and see who they are using. If you are just buying one unit, you may wish to consider managing it yourself. We still rent houses for clients and because our firm also does credit repair & sets the tenant up to buy....while providing them with credits towards their downpayment fund for every month they pay you on time, we've had more success. You may also want to split the monty rent in half as we do as it makes it easier for the tenants to pay....and ultimately keeps them in the house longer!
I'm not sure where you live in atlanta...but I would to buy something that is in your immediate area or along your commute to work....if you have one. That way you can keep an eye on things and swing by once in awhile to eye-ball the place. Happy to help anyway that we can. Real estate is the last place in this country where you can create steady eddie wealth. You make your money when you buy and the time to buy is now.
We also have a small real estate partnership where starter investors like yourself, or passive investors can earn a great return with minimal risks. Our clients put typically put in $40k to $50k towards purchasing and renovating a single family home; title goes in the investor's name & the properties are typically purchased from the banks without mark-ups; my group puts in the remaining funds to buy, renovate and market the property. Many of our buyers come through our credit repair program http://(www.tossmealifeline.com) but we market extensively with video and open houses. We guarranty our partners a 25% return per deal and split the backend profits 60% to the investor and 40% to our group. In this model, we only get our own investment back and profit WHEN we sell so the performance burden is on us. It took us over 15 years to come up with this model. Our intent is to turn the money over 2 or 3 times per year. A typical example of what we buy is: http://www.youtube.com/watch?v=7-GmhQpe1ck
In the end, it's all about networking and getting the right people on your team! Our group runs a program that is a win-win for most everyone. I can be reached at 770-265-9017 Best of Luck!
Alot of newbie investors gravitate towards SW Atlanta and similar areas where home can be purchased for $20k...sometimes less. The issue there is as Robert stated below...who wants to live there? In transitional neighborhoods, your tenants are marginal and it is difficult to keep the property occupied and rented...meaning...they actually pay the rent. I spent 3 years in that market handling rentals, brokering and actively investing. SW will do well 5 to 10 years for now...but you have to think in terms of "I am at "a" when I invest and need to get to "z" when I sell....it can be a long & difficult path between the two points. I lived in a transitional neighborhood and it's just too difficult for most investors to make any money there short term....longer term, if you have the stomach for it, I think the payouts will be there on houses like one in the historic district, mostly renovated which you can buy for about $40k. This one was purchased by an investor 2 years ago and appraised at the time for $200k.....now it's prob worth about $90K for a 4bed/2.5 bath
Finding good property managers for lower priced properties is difficult at best. There just isn't any money in it to attract good talent. Try to network with other investors online and see who they are using. If you are just buying one unit, you may wish to consider managing it yourself. We still rent houses for clients and because our firm also does credit repair & sets the tenant up to buy....while providing them with credits towards their downpayment fund for every month they pay you on time, we've had more success. You may also want to split the monty rent in half as we do as it makes it easier for the tenants to pay....and ultimately keeps them in the house longer!
I'm not sure where you live in atlanta...but I would to buy something that is in your immediate area or along your commute to work....if you have one. That way you can keep an eye on things and swing by once in awhile to eye-ball the place. Happy to help anyway that we can. Real estate is the last place in this country where you can create steady eddie wealth. You make your money when you buy and the time to buy is now.
We also have a small real estate partnership where starter investors like yourself, or passive investors can earn a great return with minimal risks. Our clients put typically put in $40k to $50k towards purchasing and renovating a single family home; title goes in the investor's name & the properties are typically purchased from the banks without mark-ups; my group puts in the remaining funds to buy, renovate and market the property. Many of our buyers come through our credit repair program http://(www.tossmealifeline.com) but we market extensively with video and open houses. We guarranty our partners a 25% return per deal and split the backend profits 60% to the investor and 40% to our group. In this model, we only get our own investment back and profit WHEN we sell so the performance burden is on us. It took us over 15 years to come up with this model. Our intent is to turn the money over 2 or 3 times per year. A typical example of what we buy is: http://www.youtube.com/watch?v=7-GmhQpe1ck
In the end, it's all about networking and getting the right people on your team! Our group runs a program that is a win-win for most everyone. I can be reached at 770-265-9017 Best of Luck!
Web Reference: http://www.buywithequity.com
Robert Whitfield,
Broker, Roswell, GA
Hi Nick,
I work with investors and always suggest you do what has always been the most effective strategy - go for location, location, not just price. Your ultimate goal is to get and keep quality tenants, and have a property positioned for the possibility of good and dependable long term appreciation when it is time to cash out. You do this by buying in the right location with the greatest appeal to the largest mass of buyers when it is time to sell. Gambling on a neighborhood "transitioning up" is just that, a gamble. Go where an area is already desireable to the average buyer.
There are plenty of agents who will suggest in town and downtown areas of Atlanta near the stadium, or near the airport where there are extremely cheap homes - the problem is elevated crime, breakins etc. Also consider- is a person who would consider renting a $100K home (especially in these areas) all that likey to need an airport - not likely. You dont get good tenants in poor quality and transitional areas, and if quality renters would not live there, neither will the largest demographic of buyers be interested. I am not saying you cant make money in these areas - but you have to know what you are doing if you go into an area where the main customer is what I call the "urban pioneer" - they dont mind or are willing to put up with the crime - at least for a while. This type area is not for the novice investor - it often has poor quailty public schools and will not attract the most buyers.
I will be happy to help you target quailty investments, and as the only realtor in Atlanta who is also an ICC Certified Building Inspector, I can assure you make a sound investment in a sound property.
I work with investors and always suggest you do what has always been the most effective strategy - go for location, location, not just price. Your ultimate goal is to get and keep quality tenants, and have a property positioned for the possibility of good and dependable long term appreciation when it is time to cash out. You do this by buying in the right location with the greatest appeal to the largest mass of buyers when it is time to sell. Gambling on a neighborhood "transitioning up" is just that, a gamble. Go where an area is already desireable to the average buyer.
There are plenty of agents who will suggest in town and downtown areas of Atlanta near the stadium, or near the airport where there are extremely cheap homes - the problem is elevated crime, breakins etc. Also consider- is a person who would consider renting a $100K home (especially in these areas) all that likey to need an airport - not likely. You dont get good tenants in poor quality and transitional areas, and if quality renters would not live there, neither will the largest demographic of buyers be interested. I am not saying you cant make money in these areas - but you have to know what you are doing if you go into an area where the main customer is what I call the "urban pioneer" - they dont mind or are willing to put up with the crime - at least for a while. This type area is not for the novice investor - it often has poor quailty public schools and will not attract the most buyers.
I will be happy to help you target quailty investments, and as the only realtor in Atlanta who is also an ICC Certified Building Inspector, I can assure you make a sound investment in a sound property.
Web Reference: http://www.thehomebuyersrep.com
Richard Reid,
Broker, Decatur, GA
Nick,
There are a number of areas around town that are well suited to rental properties. There are several factors to consider, including the stability of the property, rental competition, commute time and employers likely to draw renters, etc. Properties near the airport are well suited to renting to pilots, flight attendants, and others. Properties in town have shorter commute times, and are in demand right now. It is easier to move into the market with established tenants, so you are learning one part of the business at a time.
I happen to have a listing that may be of interest to you: http://www.trulia.com/property/1072113955-4622-Puckett-St-Fo… It is a stable duplex, near the airport, has tenants in place - one for 9+ years and another for 2+ years. Positive cash flow on this property is $300+ per month, and it is listed for $89,000.
Whether this property is of interest, or not, I would be happy to assist you in locating and purchasing or selling rental income properties in Atlanta.
There are a number of areas around town that are well suited to rental properties. There are several factors to consider, including the stability of the property, rental competition, commute time and employers likely to draw renters, etc. Properties near the airport are well suited to renting to pilots, flight attendants, and others. Properties in town have shorter commute times, and are in demand right now. It is easier to move into the market with established tenants, so you are learning one part of the business at a time.
I happen to have a listing that may be of interest to you: http://www.trulia.com/property/1072113955-4622-Puckett-St-Fo… It is a stable duplex, near the airport, has tenants in place - one for 9+ years and another for 2+ years. Positive cash flow on this property is $300+ per month, and it is listed for $89,000.
Whether this property is of interest, or not, I would be happy to assist you in locating and purchasing or selling rental income properties in Atlanta.
Web Reference: http://www.DirectLinkRealty.com
