Finding SFH rental around Atlanta GA

Atlanta, Georgia
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Finding SFH rental around Atlanta GA

Kam Ajani
Member since 2018 · 12 posts · 4 votes

Hey everyone! 

I currently live in Lawrenceville GA and am excited to be starting my real estate journey! I am interested in buying a SFH rental property, to buy and hold. As a new investor, I'm ideally looking for a unit that is close to turn-key, or needs minimal rehab. I feel like I'm a bit all over the place as far as determining the right location, and would love some tips on determining what is the right city/neighborhood for me to invest in. My budget is approx. $250-350k. Currently I have been looking in the following areas: Mechanicsville, Pittsburgh, East Point, Lawrenceville, Decatur and Lilburn. I choose these area's because A. I'm familiar with the demographic and location and B. I've done drive by's and seen several rehabs taking place, as well as checked out the amenities and C. I've read about upcoming developments in these area's (new Microsoft office coming, new commercial developments etc.

Based on all the deals I've analyzed to this point, I haven't come across nearly any that didn't have a negative cash flow. I'm wondering if I should continue looking into these areas, or if there are any other markets nearby that I should also consider. Within the current cities I have, are there any particular neighborhoods I should look into? What are your thoughts on my current list of target cities?

Thanks! 

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Miranda Micire
Real Estate Agent · Pittsburgh, PA · Member since 2020 · 82 posts · 55 votes
4y

Hi Kam. I'm an investor and soon-to-be real estate agent in Pittsburgh, PA. Let me know if you'd like to talk! With your budget, you could probably get two cash-flowing single family houses (depending on the area) in Pittsburgh. 

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  • Miranda Micire
    Real Estate Agent · Pittsburgh, PA · Member since 2020 · 82 posts · 55 votes
    4y

    Hi Kam. I'm an investor and soon-to-be real estate agent in Pittsburgh, PA. Let me know if you'd like to talk! With your budget, you could probably get two cash-flowing single family houses (depending on the area) in Pittsburgh. 

    2Reply
  • Brenden MitchumBusiness Member
    Rental Property Investor · Atlanta, GA · Member since 2019 · 1k+ posts · 872 votes
    4y

    Hey @Kam Ajani, welcome to the BP community!

    The problem you are facing is one that just about every buy & hold investor in Atlanta is facing right now. While rents are ticking up, home prices have shot through the roof. This, coupled with raising interest rates, has made cash flow close to impossible to find anywhere in the Atlanta MSA. This is especially true if you're looking on the market and for relatively turnkey properties. If you do happen to find one, you'll find yourself competing with the other hundreds of investors (and homebuyers) who have seen the same property. Likely, the closing price won't end up being anything that would have produced cash flow..

    However, there are still investors doing well in the buy & hold space here in Atlanta. These are the folks who are getting creative. Either in their strategy or in how they find deals. Have you thought of other ways to boost income beyond market rent? Or maybe developing a direct to seller marketing program of some kind, if you have the time. Essentially, the days of just doing the same basic strategy as everyone else to find cash flow are long gone. Now it takes creativity, time (yours or your team's) and patience. 

    Hope this helps a bit! Please, feel free to reach out anytime if you have other questions or just want to chat.

    [email protected]404-737-0018
    2Reply
  • Jingru Sui
    Real Estate Agent · Atlanta, GA · Member since 2014 · 683 posts · 317 votes
    4y

    Have you look into Norcross? I thought maybe Lawrenceville will have some options…. 

    0Reply
  • Jingru Sui
    Real Estate Agent · Atlanta, GA · Member since 2014 · 683 posts · 317 votes
    4y
    Quote from @Brenden Mitchum:

    Hey @Kam Ajani, welcome to the BP community!

    The problem you are facing is one that just about every buy & hold investor in Atlanta is facing right now. While rents are ticking up, home prices have shot through the roof. This, coupled with raising interest rates, has made cash flow close to impossible to find anywhere in the Atlanta MSA. This is especially true if you're looking on the market and for relatively turnkey properties. If you do happen to find one, you'll find yourself competing with the other hundreds of investors (and homebuyers) who have seen the same property. Likely, the closing price won't end up being anything that would have produced cash flow..

    However, there are still investors doing well in the buy & hold space here in Atlanta. These are the folks who are getting creative. Either in their strategy or in how they find deals. Have you thought of other ways to boost income beyond market rent? Or maybe developing a direct to seller marketing program of some kind, if you have the time. Essentially, the days of just doing the same basic strategy as everyone else to find cash flow are long gone. Now it takes creativity, time (yours or your team's) and patience. 

    Hope this helps a bit! Please, feel free to reach out anytime if you have other questions or just want to chat.

    Would love to hear how your experience with direct to seller marketing turn out. ROI etc.. ;)
    1Reply
  • Kam Ajani
    OP
    Member since 2018 · 12 posts · 4 votes
    4y
    Quote from @Miranda Micire:

    Hi Kam. I'm an investor and soon-to-be real estate agent in Pittsburgh, PA. Let me know if you'd like to talk! With your budget, you could probably get two cash-flowing single family houses (depending on the area) in Pittsburgh. 


     Hey Miranda,

    To clarify, I'm looking in Pittsburgh GA*

    Thank you though! 

    0Reply
  • Kam Ajani
    OP
    Member since 2018 · 12 posts · 4 votes
    4y
    Quote from @Jingru Sui:

    Have you look into Norcross? I thought maybe Lawrenceville will have some options…. 


     I haven't looked much into Norcross, though I've looked nearby in Lilburn. Have you had success in Norcross? Would love to hear about it 

    0Reply
  • Kam Ajani
    OP
    Member since 2018 · 12 posts · 4 votes
    4y
    Quote from @Brenden Mitchum:

    Hey @Kam Ajani, welcome to the BP community!

    The problem you are facing is one that just about every buy & hold investor in Atlanta is facing right now. While rents are ticking up, home prices have shot through the roof. This, coupled with raising interest rates, has made cash flow close to impossible to find anywhere in the Atlanta MSA. This is especially true if you're looking on the market and for relatively turnkey properties. If you do happen to find one, you'll find yourself competing with the other hundreds of investors (and homebuyers) who have seen the same property. Likely, the closing price won't end up being anything that would have produced cash flow..

    However, there are still investors doing well in the buy & hold space here in Atlanta. These are the folks who are getting creative. Either in their strategy or in how they find deals. Have you thought of other ways to boost income beyond market rent? Or maybe developing a direct to seller marketing program of some kind, if you have the time. Essentially, the days of just doing the same basic strategy as everyone else to find cash flow are long gone. Now it takes creativity, time (yours or your team's) and patience. 

    Hope this helps a bit! Please, feel free to reach out anytime if you have other questions or just want to chat.

    Hey Brenden, 

    I appreciate your response! That definitely makes sense. As far as getting creative - What i would consider "off market" deals I've found mostly through joining local Real Estate Facebook groups. Since I'm new and don't have many connections in the industry yet, I figure that's the best starting point to find off market deals and network. 
    Regarding getting creative with strategy - A newer idea that's come across my mind is to purchase residential lots or just land in general (to hold and sell once new constructions pick back up), while i continue to search for SFH. I've considered Airbnb too, but i don't think it's feasible with the amount of time that will require. If you have any more feedback on the strategy or off market deals, I'd LOVE to hear it! 
    I didn't strongly consider direct to seller marketing before because i thought that too may be too saturated at this point to be effective, but I will definitely reconsider that as I haven't seen much success yet anyways. 
    Thanks again!
    0Reply
  • Niyi AdewoleBusiness Member
    Real Estate Agent · Atlanta GA & Orlando, FL · Member since 2015 · 214 posts · 101 votes
    4y
    Quote from @Kam Ajani:

    Hey everyone! 

    I currently live in Lawrenceville GA and am excited to be starting my real estate journey! I am interested in buying a SFH rental property, to buy and hold. As a new investor, I'm ideally looking for a unit that is close to turn-key, or needs minimal rehab. I feel like I'm a bit all over the place as far as determining the right location, and would love some tips on determining what is the right city/neighborhood for me to invest in. My budget is approx. $250-350k. Currently I have been looking in the following areas: Mechanicsville, Pittsburgh, East Point, Lawrenceville, Decatur and Lilburn. I choose these area's because A. I'm familiar with the demographic and location and B. I've done drive by's and seen several rehabs taking place, as well as checked out the amenities and C. I've read about upcoming developments in these area's (new Microsoft office coming, new commercial developments etc.

    Based on all the deals I've analyzed to this point, I haven't come across nearly any that didn't have a negative cash flow. I'm wondering if I should continue looking into these areas, or if there are any other markets nearby that I should also consider. Within the current cities I have, are there any particular neighborhoods I should look into? What are your thoughts on my current list of target cities?

    Thanks! 

     Hi Kam, 


    I hear you on the cashflow piece. I agree with what @Brenden Mitchum wrote, rents are going up but the price of homes is rising faster in Atlanta with so many people moving here. The way that i have been able to make it work, is by shifting strategy from Long Term Rentals, to Short term rentals. Last summer i purchased a home for $460k in an awesome neighborhood in atlanta. As a long term rental it would bearly break even bringing in ~$2500 to ~$3000 per month. As a short term rental i have been bringing in $3000 (in slower months) to $5500 (in summer months) per month, and also have gained ~$50k in appreciation in less than a year. 

    I would look into the Short Term rental strategy. I am a realtor and Short Term Rental Investor, more than happy to connect live to discuss further. 

    What this

    [email protected]
    2Reply
  • Darrion P.
    Investor · Atlanta, GA · Member since 2021 · 43 posts · 26 votes
    4y

    @Niyi Adewole how has/will the new STR rules affect you?

    0Reply
  • Niyi AdewoleBusiness Member
    Real Estate Agent · Atlanta GA & Orlando, FL · Member since 2015 · 214 posts · 101 votes
    4y

    @D Phelps I have the primary and 1 additional unit approved and officially licensed (thankfully held off in purchasing 3rd).

    My original game plan was to purchase 7 STRs in atlanta, i will now move to the neighboring cities with less proposed restrictions (I.e. college park, east point, Decatur, Marietta, Smyrna, etc).

    The city of atlanta is still trying to figure this whole ordinance out, and over the coming months it will hopefully loosen up and introduce a pathway toward more than 2. Until then, onward and upward on the outskirts.

    [email protected]
    1Reply
  • Darrion P.
    Investor · Atlanta, GA · Member since 2021 · 43 posts · 26 votes
    4y

    Hey @Kam Ajani, Welcome!

    Lots of sound advice regarding strategy here. That part about the prices in Atl rising faster than the rents is absolutely correct! I've had that same conversation with REI in Atl. @Miranda Micire is right - you may want to consider OOS if you're 'married' to buy and hold. Best regards...

    0Reply
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