Atlanta, GA or Sugar Land, TX?

[Vicky Liu]

Hi guys!

I’m getting ready to purchase my first rental. Looking for a buy and hold property but hopefully it cash flows a bit. I’m debating between Atlanta, GA and Sugar Land, TX. Here are my thoughts:

Atlanta

Pros - potential for growth. Younger crowd. Lots of job opportunities. Prices are a bit cheaper. Lower property tax.

Cons - neighborhoods are not as safe as Sugar Land. Weather might be more unpredictable.

Sugar Land

Pros - very residential. Very nice neighborhood in the Houston area. Also got potential for growth.

Cons- Property tax rate is lower than general TX rate but still around 2.5% so that might eat into the cash flow if there’s any.

It will be a long distance investment for me as I reside in CA. I have connected with agents in both areas.

Anybody familiar with these markets can you please help and provide some insights? Much appreciated!

[Vicky Liu]

@Pete Harper

That is true about the hurricanes. ATL also gets tornados and storms. I will look into insurance rates for both cities more carefully. Thank you!

@Alvaro Rodriguez

Correct. At least the agent that I connected with said the homes rent out quickly in Sugar Land. However, I haven't been able to find one that makes numerical sense whenever I do the analysis. The high property tax rate really does consume a big chunk of cashflow. 

@John Ford

The agent from ATL says the same thing. People are snatching up properties like crazy. I'm thinking to use a more creative way to myself more competitive. However I'd honestly rather wait than engage in a bidding war. 

@Ian Fortney

The potential of flooding is a major concern to me. Especially I'm not there. Thank you for emphasizing that. I will also study Pearland. Thanks again!

@Jay Ragland

Great! That's good to know. Thank you!

@Kenji Otokawa

At least from my analysis, I would get more cashflow than Sugar Land. My goal is long term growth overtime, but I don't want to be cashflow negative. 

@Sarita Scherpereel

I see... That actually clears a lot of my confusion. Thank you so much for sharing. It definitely helps a lot. 

@Leslie George

Thank you Leslie! I'll PM you.

@Amit Dhawan

The agent actually says the same thing. And the only way to get your offer accepted is to bing all cash and above asking. What a crazy market.

@Jeffrey Donis

Great thanks for the input! I guess the trick is to actually get one without engaging in a bidding war. ugh 

@Ann Watkins

That is actually a great advice. Do you know if  hospital workers usually rent long term? 1 year or 2 year contracts? Thank you!