Is Atlanta Overheated?

[Stephen Grass]

I've been driving and scanning online, and perusing broker feeds, looking for small rental opportunities in the greater Atlanta area. Currently, I have a couple properties and would like to add two more. I'm wanting to buy in the 150k to 200k range, and get rents that approach the magic 1%.

However, in the metro Atlanta area, this seems to be a thing of the past. I am not equipped by skill or temperament to do major rehab. Paint and paper, fine.

What I have been finding is that the real estate market here is heated to the point where this is easier said than done.

Are other Atlanta investors finding the market too hot to handle, or am I jus too cheap? I'm curious about the experience of others.

[Michaela G.]

It seems to me that your price point is too high. When people can afford rents of $ 1500-2000 - they can usually buy cheaper than that. 

Increasing value does not increase the rents in the same percentage. 

Some years ago I rented a $ 1M house in the San Francisco Bay area for $ 2495.00 . 

So, if you were to look in the 100,000 range you'll probably find houses that rent for $ 1000.00