Investing in Affluent Areas?

[Anthony Gioia]

I am in the process of researching the feasibility of investing in a property management franchise.  The territory I am looking at is primarily an affluent area in the North Atlanta suburbs.

Is this a smart move to secure such a location or does it make sense to focus in more distressed territories?  Of course would prefer to engage in higher end, just trying to gauge if the demand will be there.  Are single family homes a target investment to buy and rent?

Thanks for any feedback,

[Travis Sperr]

@Anthony Gioia I own and manage 10 properties in class c neighborhoods, I have found that it is all about picking the right tenant and has very little to do with the properties. I have had tenants I never hear from, pay on time and the place is spotless when I do inspections. Of course that doesn't mean it will be that way all the time, but at the same time I have witnessed high end rentals get trashed- and it is a lot of money to rehab a 4,000 sq ft house. You will pick your niche and have to build a business. No question that it is more likely that a higher priced rental should attract a tenant that can do some of the small repairs and not call you. 

Two things that stand out to me:

You mentioned traffic - as a property manager your highest value is not driving to the properties. I very rarely get in my car after a lease up - I make phone calls and every person I use for repairs gives me a progress report.

If you already have property management experience, why buy the franchise? why not find and close the leads on your own?