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Updated over 12 years ago on . Most recent reply

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266
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Jeremiah B.
  • Investor
  • Portland, OR
128
Votes |
266
Posts

Out-of-State Rental in Atlanta???

Jeremiah B.
  • Investor
  • Portland, OR
Posted

I've been thinking a lot about investing out of state, and after doing some research, I'm leaning towards Atlanta. However, there is no better source of information online than the BP forums, so I wanted to ask: What do you think about Atlanta for a long-term, out-of-state, SFR rental investment(s)?

Because every investment's value is unique to the investor - here's what I'm looking for.

The house we're looking for:
1. Ready to be rented/Turnkey. Finishes don't have to be strong, but the place needs to be rentable from day 1.
2. 3 bed, 2+ bath SFR. Slightly larger also works.
3. Newer homes. Probably newer than 1990, but the newer the better.
4. Decent lot size (>.10 acre; preferably .15 to .25)/basic landscaping.
5. Suburban feel. Sidewalks, and tree lines streets are big deals for us.
6. We target higher-than-average rental units (60th percentile?), and are willing to pay a little more upfront and sacrifice some cash flow to do so.
7. Lots of house for the money. Certainty <$100/sqr foot. This rules out most of the US...

The city that we're looking for:
8. In a city/metro area that is larger than Portland. I think this rules out Austin.
9. A good cash flow on the type of SFR described above. Though this is a long-term investment, so cash flow is not the sole-priority.
10. A decent long-term outlook for their economy. This rules out Detroit and Vegas.
11. A non-extreme climate. This rules out Phoenix.
12. A rental market that isn't saturated.
13. Taxes and Rental/Tenant laws that are not prohibitive.

My research is suggesting that Atlanta is the best place for us to be looking. Am I missing something about the Atlanta market? Or - are there other obvious locations that I should also be considering?

Thanks for any advice, guidance, or thoughts that you might have.

Most Popular Reply

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15,182
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11,270
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Joel Owens
  • Real Estate Broker
  • Canton, GA
11,270
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15,182
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Joel Owens
  • Real Estate Broker
  • Canton, GA
ModeratorReplied

Hi Jeremiah,

I mainly do commercial and multifamily only. I have lived in Georgia all my life.

In Atlanta we have the actual city and then we have the (MSA) Metropolitan Statistical Area which encompasses over 20 counties.

The city part of Atlanta has some nice areas but also some very depressed areas. The city has high water and sewer rates and an aging water and sewer system that in some place is 100 years old at the streets.

The taxes inside of Atlanta are extremely high for the rental rate you can get and investor and owner occupants have appeals going on for years now that have not been resolved and are still pending.

Many local investors here like to invest outside the city limits and in surrounding counties where taxes are much less but you get the same or more rent for purchase price.

If you are looking at little houses J Scott a moderator on here knows those well as he does rehab and flips with some holds.

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