Houses in Decatur 30034, is it safe area?

Question

Rick Baggenstoss · Answer

"Decatur isn't the greatest place but if you want extra yield for marginal tenants then it might be a fit."  @Joel Owens

I'm pretty sure Decatur is the greatest place.  Here are a few references:

"Atlanta's most desired suburb" Creative Loafing

http://clatl.com/atlanta/NeighborhoodGuide?neighborhood=1287067

Constantly changing and evolving, downtown Decatur's character comes from the successful marriage of historic and contemporary buildings and uses"

http://www.bizjournals.com/atlanta/morning_call/2014/01/decatur-named-a-top-10-neighborhood-by.html

Decatur's restaurant scene separates this town from all other Atlanta suburbs. Walk through downtown Decatur and you'd swear it was designed by foodies.

http://livability.com/top-10/top-10-foodie-cities-2013-second-helping/decatur/ga

Rents in Decatur

http://www.decaturish.com/2013/10/rent-city-turns-to-apartments-in-housing-crunch/

Decatur Real Estate on Freakin Fire

http://atlanta.curbed.com/archives/2013/10/08/analysis-decatur-real-estate-is-on-freakin-fire.php

However, there are tiers in the Decatur market.  The above references refer to the City of Decatur (a subset of 30030).

30032, is the southern ring and IMO will see some benefit from its proximity.  The schools for 30032 are mostly run by the County (which has a huge impact on house values and rental quality).

30002 is more likely to see appreciation because of its alignment with MARTA, housing stock, etc.

30034 is not Decatur.  It's south of I-20 and lacks the benefits of being in-town or out-of-town.

Like I said, you might find a good deal, but long-term you'll do better in a different location.

Rick

Lisa Phillips · Answer

@Bobby Beard Nice! Thanks for the shout out.

Hey, check spotcrime.com, put in the zipcode, and see if you're comfortable. I always tell people that its block to block, and crime .25 miles away is actually quite far. Theft and burglary are things I see in my super expensive area of northern, va, so that is not a huge deterrent, but you should be able to make it work.

I actually did the search for you-Its a stable neighborhood in some parts, other parts maybe not so much. Now, You have to put  specific addresses you see in the mls and see block by block which neighborhoods are desirable, and which arent:

http://spotcrime.com/#30034

Hope this helps! And, if you want to see how I do my leveraged analysis technique step by step, you can check this out:

Leveraged Analysis Technique

Lisa

Bobby Beard · Answer

i would recommend listening to Podcast 54. they cover this exact question.

http://www.biggerpockets.com/renewsblog/2014/01/23/bp-podcast-054-30k-real-estate-lisa-phillips/

Rudy Saibun · Answer

Hi All,

I really appreciate all feedback, advice and links to some sites. I will use them for my property adventures in Atlanta.

Thank You All.

Joel Owens · Answer

30034 is what we are talking about right??

My comment was more centered on 30034.

Rick you live in Decatur according to your profile so obviously you know it very intimately.

According to city data for that zip code median price was 110,000 back in 2008 and dipped to 50,000 in 2012 and is now at 70,000 in 2014.

Seems this zip code is night and day not even close to the others in how it's performing which you have cited multiple examples of.

I will say it's eye opening how expensive that rancher was that was 2.000 plus sq ft asking 900k ! I think with prices rising like that you could have an overinflated micro bubble waiting to happen. Some will win big with values rising and others will lose a ton when it pops.

Again I do not focus on SFR so I would say the most value will be hearing from those who do SFR there such as Rick. Thanks Rick for providing the links and information.

Brent K. · Answer

http://web.co.dekalb.ga.us/dk_police/pol-crimetrac.html

Joel Owens · Answer

Rudy are you moving to Decatur??

You ask if it is a safe area to live in. If you are talking just as an investment only that question really doesn't do anything.

Your definition of safe and tenants for the area might be completely different. Just because bullets are not whizzing by nightly I wouldn't make that my criteria for investing from overseas. Maybe if you shared what you are trying to do more opinions could be offered.

Decatur isn't the greatest place but if you want extra yield for marginal tenants then it might be a fit.

In urban areas yes block by block. For suburban and rural it's more spread out. Look at violent versus non violent crimes and if the numbers are average statistically for that size of a population level.

Another factor is how much capital you are investing from across the pond??

If you are buying a dumpy house for 40k cash and you have a million net worth if the investment takes a dive and you lose a little no worries. If it's most of what you have I strongly advise against that situation for risk to capital versus reward. Not being here to control such a property is very hard. I have overseas clients on the commercial side but capital is typically 400k and into the millions investing over here. They have many assets so risk is reduced and properties are larger and have more scale to be hands off.

Ali Boone · Answer

I have a nice house in 30035, so right next door. It's a safe area, the neighborhood mine is in really isn't half-bad in general, but I do have problems finding decent tenants for it. When I moved it over to a different property manager he warned me that that area, for whatever reason, can be harder to rent to. Nice property, nice neighborhood, but still not great tenant selection. I've had a bummer amount of vacancy there (due to bad property management originally, but worth noting).

Rick Baggenstoss · Answer

I'm not a big fan of 30034.  It seems to be a dead zone.  There are some decent houses there.  Good rental area, but the value of the house will degrade over time.

Mark Graffagnino · Answer

I don't own property in that zip code but I have 3 private loans out with an investor who invests heavily in that area.  By heavily, I mean 50+ houses in that area.

I've been there to see the houses I was making loans on and it seems like a pretty good area for rental properties.  Not someplace I personally would buy a primary residence but solid working class.  I had no reservations about making loans on property in that area.

Houses in Decatur 30034, is it safe area?

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