Beware of the SW Atlanta Beltline hype.

[Gordon Vaughn]

I have read a lot of hype about the Atlanta Beltline over the past few years here in Metro Atlanta. Usually a strong market buzz precipitates it's realization as people jump on the bandwagon and fuel the market dynamic. Unfortunately not the case with the beltline homes. Small levels of appreciation have been seen in areas where the beltline has been completed, but these are the areas that carried strength in values before the beltline was developed. Most of the distressed areas where the beltline is projected to be built still show no signs of appreciation, even in the midst of investor activity in the area. I'm not saying that all the good stuff we're hearing about in some of these areas will never happen, but there are currently no viable trends in most of these areas that would substantiate all the hype. The city still faces big funding and planning obstacles that could prolong the remaining development for many years to come. Many local investors that I have talked with, whom have purchased next to the beltline in SW Atlanta still have the same problems and issues with crime, vacancy rates, and stagnant values, and many of those investors are regretting their purchases. If investing along the beltline is your gig, beware of the hype and do as much research as you can. Investigate the future development of these areas, area crime rates, and value changes. Many agents and bird dogs will show you 1 or 2 strong comps in a particular area, but hardly a trend when there's a sea of low sales prices in the area to which you may or may not be seeing. Make sure that trends around the beltline are viable ones backed by strong facts and numbers before considering a purchase.   

[Rick Baggenstoss]

@Gordon VaughnSorry Gordon, but I'm going to say that your posts are pretty ignorant.  I've not made a comment like that about any post out of a thousand so I hope readers of this post don't interpret me as an abusive poster. 

The Beltine has driven tremendous appreciation and will continue to do so.  Have you been to any meetings?  Have you tracked the impact on 'dangerous areas' like Reynoldstown and Old Fourth Ward?   On the Westside, the Beltline isn't complete.  If you tracked Reynoldstown, then you'd understand how much appreciation might be left vs. Reynoldstown/O4W experience.    

"East Lake is dangerous!!!" What a joke this comment is.  You missed the boat on this neighborhood too.  East Lake has had a tremendous amount of appreciation.  You could have bought cash flowing rentals in this area and doubled or tripled you money over 10 years.   Your tenants would be going to one of the highest rated schools in GA -- Drew Charter School. 

Now, I'll forecast.  The Beltine is reshaping the City of Atlanta.  I would not underestimate the longterm shift of jobs and living centers around the Beltline.  Already jobs are concentrated intown but along Peachtree and 400. We're also seeing the Beltine be a draw with Ponce City Market and new business locating along Memorial.   

West End, Adair Park are the anchors for SW Atlanta doing well.  This area is seeing significant appreciation.  It's coming off an irrational low that savvy investors like @Michaela G recognized.   I've flipped several houses in the West End.  The demand for a well done house in the West End is greater than any part of Greater Atlanta (except for City of Decatur).  

As for crime, there are apps for that.  You can see that crime occurs more frequently around the high traffic areas -- more people more crime.  I've not had any issues there, but I have suffered from theft in just about every other part of town including the 'burbs.  

SW Atlanta does require you be a more experienced investor.  There are more low income tenants and with that comes more issues, education, appropriate flexibility, and discipline.  Sounds like your clients were ill prepared to be landlords and picked a more complex market.