Atlanta Investors- Where are you investing and why?

Question

There's no secret Atlanta is a HOT market right now. For this reason, finding decent deals in the area have become almost something of the past.  I'm finding many sellers are unrealistic with their asking price and agents are over reaching with ARVs.

For anyone investing in the Atlanta area, where are you investing? What are your numbers? Are you investing for cash flow or fix and flip? Airbnbs?

Just curious to see how others are fairing in the Atlanta market.

Ethan Henning · Answer

@John Christopher Campbell haha how about BTC right now?

My investors are buying all over GA... The market sentiment right now is very hot and I am seeing a lot of my investors really pushing the ARV in a wide range of areas. Good high school districts like Sprayberry and Walton are demanding high values north of Atlanta and there is a ton of appreciating pockets in downtown that are yielding good returns.  Decatur is also very popular. Let me know if I can be of any assistance to anyone here.

Eric Boakye · Answer

@Ethan Henning, @Canesha Edwards I am looking at the East Point, Atlanta market, Can you please share some views on this market. I am evaluating a deal there and would like to know if it is one of the up and coming areas at Downtown Atlanta

Ethan Henning · Answer

@Canesha Edwards I agree with @Rush Wall it is very competitive but I am seeing a lot opportunity there still if you can jump in at the right price. We are seeing the retail prices getting pushed higher and higher which is great for investors. Feel free to shoot me a message if you have any questions

Eric Telese · Answer

We are currently invested in a Riverdale duplex but always looking all over the Atlanta area. We are mainly focused on cash-flowing properties, with potential market appreciations being just a bonus to us.

If the property is hitting our benchmark numbers for monthly cash flow $ and ROI, were good with it, regardless of the price. Unfortunately, nothing on the MLS that meet these criteria, so we are trying to source more off-market deals like the one we picked up.

Sejj Jackson · Answer

@Canesha Edwards A whole lot of Atlanta investors are buying and selling in Birmingham right now.

Manesh Hardeo · Answer

I tend to agree that the market is likely on the higher end, but we have already seen our first nice correction starting from July of last year to Jan '19.

I personally listed 2 deals at that time...one in Kirkwood that listed for $550k and eventually sold for $505k and one in the Walton district started at $425k and now at $374.9k and still out there.

Since then, we've plateaued a bit, but I think we would be naive to think we're not in for more correcting.  But, Atlanta is also much different to me, than say it was in Texas where I was from 2004-2011.

There are still many parts of Atlanta that still have nice upward potential due to the developments and the beltline.  Those areas that we see as "rough" you'd be surprised just a few years ago how much more "rough" they were.

That's the difference between the investor that sees an excellent return vs one that's just marginal.  Risk thresholds are very different for everyone.

We had one listed for a client at the end of last year, but we saw it get pretty saturated, so we had them remove it, do a few additional repairs, then we relisted.  We went under contract within 2 weeks and I see parts of Decatur on the upswing again.

Either way, there are still many ways to make money in this market and I still believe there are buy and holds out there.  For example, I can get 2 rooming houses near the beltline that bring in about $13k per month for about $550k.  I want them myself, but have 2 more projects I have to get rid of!

Canesha Edwards · Answer

@John Christopher Campbell I experienced the same thing with Bitcoin. I'm holding until the market turns around.  I didn't consider all the risk there. However, with real estate

@Ethan Henning

I agree, there are still plenty of areas downtown that have great potential.  However, most of these neighborhoods are very rough and run down. The key is buying right and not going overboard with the rehab.

Ethan what are your thoughts on Decatur? I'm looking into this area for personal and investment purposes and would love your insight.

John Christopher Campbell · Answer

As someone in Atlanta who is just getting started  in RE investing, I am worried that the market is overvalued in the intown areas.  I feel like the experienced guys would say that means we have to work harder to find good deals.  I hope I am able to do that!  I have already had a "learning" experience in cryptocurrency about buying when things are "hot" and then watching it all tank.  Left with no choice but HODLing and wait for a return in the market.  I do not want to make the same mistake in RE.  Lol.

Atlanta Investors- Where are you investing and why?

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