Deciding between a few areas in Atlanta for our first rental

[Rebecca Cardona]

My husband and I have a max budget of $50k liquid cash to invest, and we are planning to purchase a buy-and-hold investment property in Atlanta in the $100k-$200k range. We’re looking at properties in Smyrna/Marietta, Stone Mountain/East Decatur like Gresham Park area, or Pittsburgh/East Point.

We know cash flow is king, but can’t help but be tempted by Pittsburgh or East Point for the potential appreciation, but CoCs seem lower with rental rates still low in those areas and home prices on the rise.

The East side seems like CoC opportunity may be better with rental comps right around the 1% of home value number, but not sure what the demand is like over there or what the appreciation opportunity will be.

Smyrna/Marietta is attractive because of the schools, but again not sure what the appreciation opportunity will be given they are a bit more mature markets. Either way, planning to hold for 10-20 years, maybe longer.

Any suggestions for us from you seasoned vets would be greatly appreciated!!

[Joel Owens]

If the 50k is a bulk of your wealth then would stay away from marginal areas of GA.

If your net worth is say 5 million and this is just taking a punt on something to see if it works out then risk factor might be much less. I saw a lot of up and coming areas in Atlanta lose 75% of value in the last downturn. I do not do residential but tend to like areas that have held up pretty well over time no matter the investment cycle.

If you have 50k to invest then at 20% down might be able to do a 200k house and 10k for closing costs. In good areas that is about entry level now.