Trying to figure out investing in Atlanta

[Josh Stralko]

Hey everyone,

First and foremost, thanks in advance for any insight that you can provide.  I'm just starting down my investment journey (I have been a part of quite a few deals in my original home state, but now I'm going out on my own). I am trying to get a good grasp on the market and started out with my team (Lender, Agent, PM, and Contractors) but in finding an ability to do BRRRRs here or converting properties, I noticed it to be very difficult due to some of the zoning (All of the zoning) limitations that are here.

I am currently struggling to find properties that cash flow positive pretty consistently (From a duplex-fourplex perspective) and even if I look at living in it personally, it can easily still be "cutting it close".

I noticed that most agents are focused on appreciation here (even the investment minded RE Agents) and were curious if anyone had any stories they might be able to share or some suggestions/learnings from being in the greater ATL market.

All the best,

J

[Brenden Mitchum]

Hey @Josh Stralko, welcome to the BP community!

@Ryan Shyng too

I will admit that I am not well versed on all the zoning laws for every Atlanta county. However, other than some restrictions recently put on new construction on the West Side, I am not aware of other restrictive zoning outside of the norm. Obviously, taking a SF and turning it into a duplex will be a zoning issue and yes, getting these approved is quite tough. Would love to dive into some of the other zoning issues you have ran into though!

In regards to finding great deals on the market, this is something that is quite difficult in any hot market. Atlanta is one of the hottest right now and has been for some time. However, the greater Atlanta metro is huge and there is growth happening all over. Have you looked at deals in the border counties like Henry, Douglas, Paulding, etc.? 

Appreciation-happy agents are quite abundant here because that is a big upside to investing in the Atlanta area. With cash-flow so sparse, this is becoming a focus for many investors and agents in the area. That being said, there are those of us still out there who would not bet on appreciation ourselves thus will never ask a client to do so (unless that is the client's goal). Cash-flow and decent spreads do still exist if you know where to look and are prepared for the ensuing bidding wars. You might even get one that slips through the cracks. One of my clients closed on a deal last month that was about $75k with $1k/mo rent that had been on the market for a few months. It only needed a few grand in repairs. Definitely more of an exception than the rule here but these deals do still exist if you're diligent and patient. 

Now, if you're real serious about finding multiple deals in a shorter span of time here, you will want to go the off-market route. I'm not talking wholesale deals since these seem to be even more sparse than market deals. You'll want to start your own marketing campaign, but remember you will be battling with all the wholesalers and agents who are doing the same. Therefore, you will want to get real specific with your campaign and try to hone in on a niche that is not yet saturated.

Lastly, keep in mind, just because you aren't buying deals left and right does not mean you aren't being productive and moving closer to your goals. If the deals aren't coming and you're doing your best to find them, that is out of your control. So, focus on things that are within your control, like expanding your network and education. Make sure you are positioned so that the moment a deal does come up you're ready to go. That's the name of the game here in Atlanta.

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