Atlanta Cash Flow Properties

[Shyam Panchal]

Hi BP Community,

I am relatively new to the BP community and am in the market for some rental properties in the Greater Atlanta area.  I currently have one rental property in Alpharetta, but was looking elsewhere as the price points are too high for my budget ($150k).  I've mainly been looking in North Atlanta, and the agent I am working with suggested areas such as Marietta, Dawsonville, Cumming, Sandy Springs, Woodstock, Doraville, and Brookhaven.  Dawsonville, she said, might be the next up-and-coming area.  

I have a friend who recently bought a few properties in West Atlanta with a high percentage of renters (75%+).  I was considering this strategy, but thought the areas he invested in didn't seem that great based on median income, vacancy and unemployment rates (30331, 30311, 30349, 30008).  Vacancy rates in these ZIP codes ranged from 10-20% according to NeighborhoodScout.  Median Income was lower than the national average and unemployment ranged from 10%-15% (taking these details with a pinch of salt).  

I suppose I have a few questions really:

1)  Has anyone recently invested in Atlanta and have any suggestions where else to look?  North Atlanta seems quite pricey at the moment, and I'm have doubts I will be able to pick up anything with my budget.

2)  Does it make sense to invest in rental properties in low income/high unemployment areas, IF there is a high percentage of renters compared to owner occupiers?  

3)  I am looking to sell my rental property in Alpharetta.  Unfortunately, the experience hasn't been great with the amount of repairs, bad tenants, and challenges selling the property (It almost sold last year, but due to the repairs that deal fell through).  However, I am not having trouble renting the property.  It seems to generate a lot of interest as it's near good schools (Brandywine Elementary, DeSanna Middle School, Cambridge High School).  I was considering doing a cash-out refinance to use the equity towards purchasing more property and renting it out as I am today.  Is it recommended to avoid doing a cash-out refinance on properties which have had trouble selling?

Thanks!

Shyam

[Kevin Tran]

Hey @Shyam Panchal and welcome to the BP community. 

1. There are so many opportunities to invest in Atlanta. Many of the single family houses in the historic districts are upgraded and are appreciating as a couple of large community projects (Quarry Park and Beltline) are nearing completion. 

2. This is subjective to what returns you are looking for. You won't find a problem with vacancy in South Atlanta because the demand to rent is high. 

3. Sounds like your rental property needs an update or a price break if you are still looking to sell. Are there properties in your neighborhood that are renovating?