Rental Property in Atalanta Decatur 30035

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Rental Property in Atalanta Decatur 30035

Tzook Bar Noy
Rental Property Investor · boca raton, FL · Member since 2015 · 43 posts · 20 votes

I just go a lead on a rental house in 30035, it will need some fixup, buying price is 55, and I think I should invest 20K more.

Rent is approx 750 I think, it's a 3 rooms and 1 bathroom apt, 1050 sqf.

What do you think on the rental status in the area, and future house prices?

Thanks for any help :)

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Andy Luick
Real Estate Investor · atlanta, GA · Member since 2013 · 456 posts · 237 votes
10y

I haven't bought anything in that area although I like things around 20.  I wouldn't be interested in buying a 1-bath anything....just wouldn't.  There are some 4/2s in that market for under $60k.  If this is your first shot at something, find something with quick and multiple outs if you need to get out....a 3/1 isn't going to turn quickly.  What are you spending the $20k on?  If the walls are wrecked and the wiring is even partially stolen...move on to something else....if they neighborhood stole from it once...it will happen again either during your rehab or if it ever goes vacant.  There are some deals floating up now until January/February.  Mix with enough wholesalers and you will find something off-market that might make more sense.  I personally think another huge crush is coming and that's not a zip I'd want to be holding a rental in....happy investing!

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  • Sam Valme
    Rental Property Investor · Arlington, VA · Member since 2015 · 160 posts · 53 votes
    10y

    Hello @Tzook Bar Noy, I've been looking in that area myself. My dad lives in Stockbridge so I've been up to Decatur a few times. There has definitely been a lot of talk about ATL being a "rising" market. But with appreciation and you won't realize it until its realized. So I wouldn't buy into an area just to wait. 

    You should consider your overall goals before you buy. Especially when it comes to HOW you buy. If your all in is 77k and you use your own money. What happens when that rehab goes over? If possible, leverage another source for the downpayment and/or the rehab. Another thing would be to get actuals on the expenses for the house. This will dictate whether $750 will be adequate for your ROI.

    I'd take a look a the calculators at www.biggerpockets.com/calculators. Run the numbers and see if it makes sense after everything is said and done. Good luck!

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  • Account Closed
    Wholesaler · Santa Cruz, CA · Member since 2014 · 79 posts · 12 votes
    10y

    Welcome to BP @Tzook Bar Noy

    I would say that not all rentals really NEED to be fully upgraded...   Honestly for the square footage - pushing your full all in price up to over $70K is not sounded like the best way to spend your money.   I also like this area for rentals but it has to be the right property and the right price...   $20K in rehab should get you quite a bit and you will not get that money back very quickly at $750 in rents a month.  Especially not if you plan on having a property manager.   I would say keep looking but you can find a better deal.   Good luck to you. 

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  • Andy Luick
    Real Estate Investor · atlanta, GA · Member since 2013 · 456 posts · 237 votes
    10y

    I haven't bought anything in that area although I like things around 20.  I wouldn't be interested in buying a 1-bath anything....just wouldn't.  There are some 4/2s in that market for under $60k.  If this is your first shot at something, find something with quick and multiple outs if you need to get out....a 3/1 isn't going to turn quickly.  What are you spending the $20k on?  If the walls are wrecked and the wiring is even partially stolen...move on to something else....if they neighborhood stole from it once...it will happen again either during your rehab or if it ever goes vacant.  There are some deals floating up now until January/February.  Mix with enough wholesalers and you will find something off-market that might make more sense.  I personally think another huge crush is coming and that's not a zip I'd want to be holding a rental in....happy investing!

    1Reply
  • Account Closed
    Wholesaler · Santa Cruz, CA · Member since 2014 · 79 posts · 12 votes
    10y

    @Andy Luick I would be curious to understand why you believe another crash is in our future?   I don't think any of us want to hear this kind of thing, but in the event that it does, people still need to rent houses.   I really would like to hear your perspective.

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  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    10y

    Jeannie it's how you define a crash. That could mean many different things to multiple people.

    A correction. min-bubble, etc. are all terms describing the ebb and flow of a micro market.

    Some investors simply wait for the news to tell them the market is peaking. Others who understand cycles have peaks,declines, flat lines. etc. are making moves ahead of the market.

    When you see a cycle fixing to go down you need to either realize the gain and get out  or hold the property long term with locked in financing waiting for the cycle to come back.

    Where people get into trouble is overpaying in a market using short term debt based on rents that might reverse course in a down turn.

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  • Tzook Bar Noy
    OP
    Rental Property Investor · boca raton, FL · Member since 2015 · 43 posts · 20 votes
    10y

    Thanks everyone  for your answers!

    I think it is quite high as well, I just view zillow and trulia and the price seemed like just in the middle, and the calculator gave me like bottom like 7% ROI

    So I decided to consult with the experts :)

    1Reply
  • David Cohen
    Investor · Decatur, GA · Member since 2014 · 56 posts · 16 votes
    10y

    Where is it?  North or South Decatur? Is it already rented? I might be interested.

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