Starting Out
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Is Georgia attractive for Real Estate Investment in 2024?
Hi everyone!
I am new to real estate investing and am eager to gather knowledge about real estate investments, specifically in the state of Georgia. I am curious if, in 2024, Georgia is still considered an attractive location to buy real estate for rentals.
As a new investor, I am contemplating the best approach to take. Initially, I considered investing in multifamily units, but they seem to be hard to find in the current market. Consequently, I am looking into townhomes as an alternative. From my research, townhomes appear to have lower maintenance costs compared to single-family properties and potentially offer higher cash flow.
My primary goal is to find avenues to park money while also building wealth, achieving high cash flow, and growing in the real estate sector. Would you recommend starting with townhomes and transitioning later into single-family units and apartments?
Additionally, I would appreciate recommendations on which areas in Georgia to consider for investment. My top choices for now are Kennesaw, Marietta, Alpharetta, Woodstock, Roswell, Smyrna, and Sandy Springs.
Thank you for your advice and guidance!
In the Atlanta market, I am seeing many LTR SFRs do well. They have moderate cash flow and strong appreciation. If the goal is higher cash flow, I would look at more midwest markets, or some of the Georgia submarkets and rent out the properties as section 8 rentals.
Franck: There is alot to unpack in this post. So much so that you might consider breaking it up into separate posts on each subject. That said:
I stay away from townhomes due to the presence of HOAs; they can make decisions you are not party to which can materially effect your cash flow. Also, you should define if cash flow or appreciation are your goals, as that will dictate the area of Georgia you decide to invest in.
I owned apartments in Fort Oglethorpe but that's because it was close to Chattanooga, TN and I have heavily invested there a few years ago. I'm not sure about the areas you mentioned. But the question to ask is if there is anything new coming to those areas. Manufacturing, tech, basically are there new jobs coming? If not, then I would not be looking there. My guess is these are relatively close to you so you can drive. Here's my investment motto: "Live where you want to live, Invest ONLY where it makes sense". So, you might need to go out-of-state since the goal needs to be to invest in growth markets. DM if you want to learn more about how I'm doing this.
Lived in GA my whole life almost 50 years now. Woodstock one of the safest cities in all of GA. Nothing here is cheap. Hard to find anything below 350k here now. All those other areas you mentioned are expensive as well. You are mentioning highly sought after parts of GA.
I do commercial real estate over 20 years now specializing in NNN properties.
Don't expect monster cash flow here for residential. It will likely be more rent growth and property appreciation over time.
When I sold my starter house here in Canton next to Woodstock it sold for all cash in 3 days. New York buyer moving here with a family. To them 500k is cheap. Growing up my mom and dad built a new house in the 1970's for about 39,000.
STR Townhomes in Chattanooga TN are definitely booming. Used to be south of around 5900 back during covid. Dwindled down to about 3800 now. Great area to start in, Lots of OOS investors narrowing down on the Chattanooga market!
@Franck Armand, as noted by others, unfortunately, you'll have a tough time sourcing on-market cash flow deals in those respective areas unless you intend to put down a significant amount of capital. Also noted, most townhomes reside in HOA communities that have rental restrictions/caps and HOA fees that'll eat into cash flow.
As I've informed most of my clients, due to interest rates and overall market conditions, Atlanta has become an appreciation-based investment market unless you're implementing a creative strategy such as rent-by-the-room, STR, MTR, etc.
Where do you currently reside? Most experienced investors recommend that newer investors look into their local markets to explore options. Nevertheless, I'm happy to connect and discuss investment strategies that my team and I have seen work well in ATL.
If you are considering STR's, you may want to look at areas in the Blue Ridge Mountains.
Quote from @Michael Dumler:
@Franck Armand, as noted by others, unfortunately, you'll have a tough time sourcing on-market cash flow deals in those respective areas unless you intend to put down a significant amount of capital. Also noted, most townhomes reside in HOA communities that have rental restrictions/caps and HOA fees that'll eat into cash flow.
As I've informed most of my clients, due to interest rates and overall market conditions, Atlanta has become an appreciation-based investment market unless you're implementing a creative strategy such as rent-by-the-room, STR, MTR, etc.
Where do you currently reside? Most experienced investors recommend that newer investors look into their local markets to explore options. Nevertheless, I'm happy to connect and discuss investment strategies that my team and I have seen work well in ATL.
Hi Michael, I would like to connect with you and discuss investment strategies. What is the best way to reach you?
Quote from @Daniel Hyman:
If you are considering STR's, you may want to look at areas in the Blue Ridge Mountains.
Hi Daniel, thank you for your input. I am actually considering long-term rentals
Quote from @Jeff Costa:
Franck: There is alot to unpack in this post. So much so that you might consider breaking it up into separate posts on each subject. That said:
I stay away from townhomes due to the presence of HOAs; they can make decisions you are not party to which can materially effect your cash flow. Also, you should define if cash flow or appreciation are your goals, as that will dictate the area of Georgia you decide to invest in.
Hi Jeff,
Thank you for your input on my post. You're right, and I had considered that too. I initially leaned towards townhomes because of the lower maintenance as I get acclimated to real estate investing. However, HOA fees can be high & eat into the profits, and rental restrictions aren't ideal. To answer to your question,my goal is to hold onto the property long-term, so cash flow is a priority for me. Given this, would you recommend single-family homes over townhomes for a buy-and-hold strategy?
Quote from @Daniel Hyman:
If you are considering STR's, you may want to look at areas in the Blue Ridge Mountains.
Hi Daniel, I am considering LTR's for this project
I would search for a SFH or a small multifamily.
Just to give an idea one of my residential agent friends listed a house here recently for 2,400 sq ft for 650,000. Not a new house either but sitting on larger lot in Canton about 10 minutes from Woodstock.
I have lived in GA all my life and have never seen anything like it for the growth. I only drive on the interstate when I can use my peach pass or you will sit in traffic for hours barely moving.
Lots of CA and NY buyers moving away from political views and government changes they do not believe in. It's causing an up wave of price increases here. The first time homebuyers get priced out of the market because the all cash buyers moving in from out of state gobble the properties up. So that will have more first time buyers looking for years and have to keep renting because they can't afford the higher priced homes they want with current interest rates. Some home builders are eating profits buying down the rates with the lenders to get into the 4's or 5's fixed but it comes at a steep cost many tens of thousands in fees upfront to the lender. The cost of labor and materials now is insane.
The type of work on my custom house is about 400 a foot. Cheap box builder grade trash they are building now is about 250 to 275 a foot. The builders basically throw veener stone and brick upfront to make look nice and put laminate and crap like that inside. It's all junk that will fail fast.
Pre-corona homes tend to be built way better and you get a bigger lot.
If you are holding these for decades then rent growth and appreciation over time should be there but nothing is guaranteed.
GA in some areas has low crime, good schools, and weather. There are plenty of crap hole areas though. The upper ring MSA suburban areas above Atlanta tend be better. Still some good ones on the lower ring but not as many.
@Michael Dumler so what do you think of house hacking or turning a single family into a multi- unit in the Bankhead area in terms of cash flow?
or rather any of the areas Frank mentioned above?
Hey there! If you’re diving into real estate investing, Georgia’s a hot market in 2024, especially in places like Kennesaw, Marietta, Alpharetta, Woodstock, Roswell, Smyrna, and Sandy Springs. Townhomes are a great start because they often have lower maintenance costs and better cash flow than single-family homes. Just keep an eye on HOAs since they can affect your bottom line. It’s important to decide if you’re aiming for cash flow, appreciation, or both—this will help shape your investment choices. Also, look at job growth in your target areas, new jobs usually mean a strong rental market. Starting with townhomes and then moving to single-family homes or apartments is a smart plan. Keep learning, and you’ll find the right strategy. Good luck, and ask questions whenever you need!