Area to BRRR in Atlanta

[Frida K.]

Hi, I moved to GA a few months ago but live 45 mins North of ATL so don't know much about the city. I'm looking to BRRR two properties in the next couple of months. My main goal for this is to give to my 7 &4 year old when they are old enough to potentially live in, so somewhere that is still very affordable and rentable, and has potential to be a safe good area for my kids in the future should they chose to stay (I realize it's all speculation but best guess based on info now). I'm not as concerned about cash flow, but definitely want the numbers to make sense/maintain itself. What areas would you recommend <$250k/u all in? Based on my research I've seen Grove Park, Pittsburgh areas but get mixed reviews online. Also what other areas would you recommend? I've heard around West of belt-line but so many areas there too. I'm looking for at least 3 area codes to focus my efforts on. I appreciate your help.

[Brenden Mitchum]

Hey @Frida K., welcome to the BP community!

First off, I love this idea. Creating a nest egg now for your kids to enjoy down the road is a beautiful thing and definitely goes above and beyond the efforts of most parents.

But, in order to make this happen, one must be realistic. First, completing two BRRRRs in a couple months in this market as someone who just moved here and is not familiar with the area is simply not possible unless you team up with an experienced investor here. This is even less likely if you have never completed a BRRRR or flip before. That being said, getting a BRRRR or two started in the next couple months could happen if you really work your tail off.

Another issue is that there is a ton of unknowns out there right now. It's probably not the best time to dive into something that barely cash flows. Vacancies could sky rocket, rents could plummet, who knows. If you can keep the property afloat for a couple years with negative cash flow this could still be a good option but if it's going to be narrow you might want to wait until these unknowns become knowns. 

Now, if we're talking inside the perimeter, no one really has a clue when the rougher areas will get better (if ever). Like you said, it's all speculation and that's a dangerous game to play, especially with your children's inheritance. That being said, if you purchase near the belt line you'll have a pretty good shot at success over the next decade. Pittsburgh has been a good example of this but has been flooded with investors for a while now. I'd recommend looking in Oakland City/West End. This area is quickly heating up though so you can even look north of HWY 20 but then you will really be playing the speculation game. Plenty of investors doing this right now though. Grove Park is not a terrible idea since it is right next to the Westside Park. The park was slated to start opening Spring 2020 but with COVID + typical municipal large scale construction delays this did not happen. Remember, any location that might be nice one day but isn't quite there yet is going to have a million opinions on the matter so mixed reviews should be expected.

I hope this helps a bit and please feel free to reach out to me anytime if you have other questions or ever just want to chat!