Investing a SFH in Johns Creek area Atlanta?

Question

Hi BPers,

I’m an OOS investor interested in investing in a property around Johns Creek area in Atlanta. And learned a great deal of information from the forum especially with Mr. James park analysis. Realized it’s been a while and wondering is it still a good time to buy in the area mainly focused the top school district? Or maybe too late? Or shall I be paying attention to some other areas in Atlanta with a much better ROI since it’s been a while from the discussion a few years back?

Thanks in advance!

Clarence Gong

Clarence Gong · Answer

Hi, gentlemen,

Just persuaded my wife to look for a cash flow property with good ROI instead of getting that pretty house in Johns Creek.

Around 500k with finance for a rental property investment in Atlanta. Any suggestions?

Thanks guys!

Clarence

Micah Redden · Answer

Hello Again @Clarence Gong,

As much as I would like to answer your questions it would be difficult to give you solid numbers on how much you can get per month. Also, this area might make you want to ask a different question like; "How long will my tenant stay in my Class A property?"

The market is strong and the school districts are in high demand but every time you change from one high school district to the next your monthly rental amount changes. Property taxes are higher here, but again, you are looking at stronger appreciation, greater neighborhood stability and an easier tenant to manage.

Without dumping a spreadsheet worth of data on you about each school district, price point and rental value, you would want to evaluate where you want your investment along the Cash Flow to Appreciation spectrum.

Clarence Gong · Answer

Thanks very much. Gentlemen.

My daughter is 3YO now and my wife plans things very early. She just fell in love with those houses around 400k right away and starting talking to lenders.

We do plan to move to Atlanta 3-4 years time but as Mr. Park was comparing Johns Creek vs Irvine in Cali. We did live there for a Short while. She is kind worried that price in Johns Creek will increase dramatically again in the next 4-5 years time. Anybody sees that coming?

How is the rental market going up there? Say a SFH with 4bds/3bths, how much can you get for a month?

Property tax situation? Any suggestions there?

Thanks very much guys?

Clarence Gong

Curtis Rouse Jr · Answer

@Clarence Gong as the others have mentioned, this is not an ideal cash flow market that I would be targeting unless you get something from an auction or off market from a VERY motivated seller. With that being said it would be very tough to find those returns, so I would recommend looking in more rural areas away from the city as cap rates are starting to compress. Look in areas like Macon/Middle Ga and North Ga in my opinion if you want to find better returns like I have been finding. Just make sure in these areas you have boots on the ground or a good management company you trust that familiar with the area you are targeting. Real estate can be very street/block specific that's why I give warning to know your market. Also, if you ever need help analyzing deals, I've built a financial model (example on my website) that I help investors with all the time underwrite their deals from the smaller SFR's to the larger million dollar apartment complexes. Best of Luck and let me know if I can be of any assistance!

Micah Redden · Answer

@Clarence Gong

I am an agent and investor and I live in Johns Creek. There are investment opportunities here but I feel it is important to be realistic about what your goals are. Great schools, established neighborhoods and strong earners don't necessarily lend to high cash flow properties. However, because of the aging properties here there is potential for value add situations.

Be smart about what your objectives are and choose the property that fits your needs. Let me know if I can help in anyway.

Richie Choy · Answer

I would not call it a cash flow market - a lot of parents with kids graduating are moving to Cumming which is also seeing a ton of new development.

Probably still some specific value-add strategies that people are implementing in that area if you could find those people.