Hi, my name is Brian Lee in Atlanta, GA area. I am just getting started with real estate investing so I would love to connect and learn.
So, I am looking for my first investment property. I am trying to house hack with small multi-family home. Please let me know if you have any recommending location or areas to avoid or properties that might be a good deal. I am looking more in northern and eastern part of Atlanta area, starting from downtown to up and east (Sandy Spring, Norcross, Duluth, Suwanee, Johns Creak, Decatur, etc). I am very open to any potentially good deals. Thank you!
I invest in duplexes. I almost never seen 2-4 in the area your mentioned. At least not under the price I’m trying to stay under. Alpharetta has duplexes. Lawrenville, Sneilville, smyrna, Marietta, Mableton etc might be good area to look into as well. Good luck
@Brian Lee awesome to hear that you are looking for a house hack deal. With limited inventory, the one thing I'll note is that 2-4 unit on market deals in the areas you have mentioned are fairly difficult to obtain. More often then not, you are usually up against cash offers that are willing to go 15-20k over asking. I advise most investors that are looking to house hack to identify properties that have in-law suites which can either be used as a long term rental or potential AirBNB. There is also rent by the room, which would be more hands on, but that is entirely dependent on your strategy/criteria. I would also add Marietta and the surrounding areas on your radar as well. Hope this helps!
I invest in duplexes. I almost never seen 2-4 in the area your mentioned. At least not under the price I’m trying to stay under. Alpharetta has duplexes. Lawrenville, Sneilville, smyrna, Marietta, Mableton etc might be good area to look into as well. Good luck
My first house was a house hack was a 5 BR/ 2BA house on nearly an acre in a stable, less desirable area. One of 20 houses had been renovated in the last few years. However, there were a lot renovations nearby and good housing stock, so I expected the trend to continue. Also, it was a very tough year for buying real estate --- prices were at an all time high. I had several roommates live with me. They almost paid the mortgage while I renovated the house.
Twenty years later, City of Decatur is pretty desirable now. House is now worth triple --- I guess I overpaid at the time.
Buy a good house you can afford. Over time, you'll do great. Your location will likely improve in desirability over time if you consider the desire to be close to the city core, walkability, etc.
As others have pointed out, these are very tough areas to purchase MF in. The main reason is that there just isn't much small MF throughout most of the MSA and what does exist is often traded off-market or at incredibly aggressive terms on-market. Chances are you won't be able to compete as an FHA buyer. You'll be left with the garbage that likely won't pass FHA appraisal regs. anyways.
That's the bad news...The good news is that opportunities still exist in the small MF space if you go direct to seller. Remember, you will still need to negotiate FHA financing so this could be tough but you have a better shot with less competition this way. There are pockets throughout the MSA with small MF. I know there is a decent amount in Lawrenceville & Conyers but Norcross also has a small supply. I can probably track down an address for a pocket of small MF in Norcross if you're interested.
The good news continues if you're ok with going the SFH w/mother-in-law suite route. This comes with it's own complications but these homes are easier to find and negotiate. Plus, you can now use low-down conventional financing, which is more appealing to sellers than FHA. This is what we did at the end of 2020 and it has been going well - happy to share any tips if you do decide to go this route.
Hope this helps a bit! Please, feel free to reach out anytime if you have other questions or just want to chat!
Of the list you provided, the sweet spots are Norcross, Lilburn and Decatur for small multifamily units. You did not mention budget, if you message me your general criteria, happy to help you hone in on areas that work best for you. Best of luck house hunting!