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Atlanta Rental Property Investment Opportunities

Atlanta Rental Properties

Atlanta is home to around half a million people. It is part of a larger metropolitan area that is home to around six million people. Many of the Atlanta suburbs are home to 100,000 or more. Atlanta Rental Properties are sought by all types of real estate investors because you’re paying for a quality real estate when you decide to buy them in good neighborhoods. Starting at $70,000, the Atlanta rental properties provide a cash flow of up to  $750/mo and a 3-year appreciation forecast of 9.3%.

atlanta rental properties

Photo Credit – Pixabay.com

Is It a Good Time To Invest In Atlanta?

The short answer to this question is yes. The longer answer is: yes, definitely, especially if you’re buying in the right Atlanta neighborhoods. If you asked about the Atlanta real estate market 15 years ago, the answer would be someone pointing at the suburbs. The city was expanding in all directions. The problem was that infrastructure couldn’t grow fast enough. Its urban core is seeing a wave of redevelopment as people choose to pay more to be close to jobs, amenities and public transportation.

And this has caused Atlanta real estate development to surge. Almost four billion dollars worth of real estate investing has poured into downtown over the past ten years, and that much more is either on the drawing board or under construction. The downtown population has risen roughly 2% a year per year since 2010.  While Atlanta home prices rose roughly 10% between 2016 and 2017, they are expected to go up nearly that much in 2018. Overall, the Atlanta housing market trend is much hotter than the rest of the nation. Here isn’t enough inventory for those moving to the area, and areas close to jobs, hospitals, quality schools and amenities can see bidding wars due to limited inventory.

Atlanta Housing Market Trend 2018

According to Zillow.com, the median home value in Atlanta is $239,600. Atlanta home values have gone up 13.8% over the past year and Zillow predicts they will rise 3.7% within the next year to $248,000. The median list price per square foot in Atlanta is $239, which is higher than the Atlanta Metro average of $124. The median price of homes currently listed in Atlanta is $355,450 while the median price of homes that sold is $231,500. The median rent price for Atlanta rental properties is $1,700, which is higher than the Atlanta Metro median of $1,495.

The percent of delinquent mortgages in Atlanta is 1.4%, which is lower than the national value of 1.6%. With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth. The percent of Atlanta homeowners underwater on their mortgage is 19.5%, which is higher than Atlanta Metro at 12.2%.

Single Family Homes For Rent In Atlanta

Atlanta, GA is one of the top markets for single family rental homes in the US. Many young families and couples thinking about the future are interested in renting such a property. Therefore, the demand for single family homes for rent in Atlanta is high. Another research regarding Atlanta’s population and demographics reveals that 49% of the population in the city lives in family households with kids. In comparison, 38% of the people are living alone. People who inhabit family households are more likely to rent single family homes rather than apartments because they offer more space and privacy. Currently, Zillow has 510 single family rental homes for rent in Atlanta, GA. You will find 859 Single Family Homes For Rent in Atlanta, Georgia on Trulia.com. If you are looking for turnkey real estate investmentNorada Real Estate Investments saves you time by finding you the best rental properties in Atlanta. They will provide you newly rehabbed properties with screened tenants in place. Properties starting at $70,000, providing up to $750/mo cash flow and 3-year appreciation forecast of 9.3%.

10 Best Places To Buy Atlanta Rental Properties In 2018

If you are dreaming of owning a rental property, what better place to do that than in Atlanta, GA? The city has a thriving real estate market that promises lucrative returns. Atlanta suburbs offer a diversified population in which a newcomer can easily fit. Most of the Atlanta rental properties in the suburb areas are single family rental homes. Now the question is, which neighborhoods of Atlanta are best for rental investment in Atlanta? If you looking to invest in Atlanta, here are the 10 best places to buy Atlanta rental properties in 2018.

Hanover West, Atlanta

Hanover West is a small, legacy development built in the 1960s. It offers a number of amenities that attract residents of all ages. Niche ranked this one of the best places to buy a house in Atlanta, but they rarely come on the market. This allows landlords to charge a median rent of $1100 per month. The average home value here is higher than the national average and well above the average for Atlanta, forcing many who want to live here to rent.

Midtown Atlanta, Downton Atlanta

Downtown adjacent areas like Midtown and Buckhead have seen prices rise substantially. If you can find a single family home here, you can rent it out for top dollar. These Atlanta rental properties will be valued for their space and privacy in an area quickly converting to multi-family housing. Median rent here is about $1800 per month. Properties close to Georgia Tech profit from the steady stream of renters.

Buckhead, Atlanta

Buckhead homes are worth a lot because of their proximity to downtown. Then there’s the fact that it is full of mansions and estate homes, though there are a few small cottages that can be rented out as starter homes. Or you could buy an old bungalow and replace it with the four to six bedroom executive homes becoming the norm for this area.

Gwinnett County, Georgia

This area is in such demand that time on market fell 20% in 2018. Median home prices rose 5% here year over year. Part of this is because Gwinnett schools are so good. Buford in Gwinnett County had the best public schools in the state.

Grant Park, Atlanta

Grand Park is the oldest city park in Atlanta, and the same name applies to the residential district around it. This area is close to downtown, but it is full of older single family homes that command high rents for the privilege of living here. You’ll receive significant cash flow from properties in the area if you can buy low, since median rent in 2018 was $1300 a month.

Decatur, Georgia

Decatur was ranked one of the best suburbs in Georgia by Niche.com. Even better, they were ranked 32nd on Niche’s best places to live in America list in 2017. It was also named one of the best suburbs for millennials in 2016.

Alpharetta, Georgia

Alpharetta is an attractive real estate market to home buyers and renters, and that makes it a good place for real estate investors. The real estate market is a mix of condos and detached single family home. Alpharetta had numerous schools rank 10 out of 10 at Greatschools.org.

Peachtree Heights West, Atlanta

Peachtree Heights West is located in southwest Atlanta. This upscale neighborhood has been ranked one of the hottest in the city due to increasing sales and rental activity. It is a short distance south of the already overpriced Buckhead Forest. This area is a great place for investing in Atlanta rental properties, since median rents are well above average at more than $1700 per month.

Ormewood Park/Glenwood Park, Atlanta

Ormewood Park/Glenwood Park is located between Grant Park and East Atlanta Village. This area is dotted with 1920s Craftsman style homes. Redevelopment in the area is replacing affordable single family homes with multi-family housing and upscale homes. Many move here to be close to its top notch charter schools. That’s part of the reason why median rents were a little below $2000 in Ormewood Park.

Old Fourth Ward, Atlanta

Old Fourth Ward is a historic industrial district that was, at one point, nearly abandoned. It is being revitalized into a hip neighborhood commanding rents of around $1700. There are significant opportunities for real estate investors, since there are still properties in the area that need to be renovated to be attractive to renters.

Should You Invest In Atlanta Rental Properties?

It is obvious by now that Atlanta real estate market is very strong. This leaves some worrying if it is a bubble that’s going to pop. The answer to that is no. The metro Atlanta area has seen stellar growth second only to Houston real estate market. Demand has caused home values to rise around ten percent a year for the last few years. Housing prices in Atlanta dipped in 2017, allowing prices to adjust. Average home prices today are similar to where they were at the 2006 peak, but they’re actually more affordable when you take inflation into account.

You should consider buying a rental property in Atlanta, if you want to diversify your holdings beyond stocks and bonds. Remember, choosing the right property, maintaining it, dealing with tenants—all that takes work. A rental property should be turnkey and rent ready. A good rental property is the one which is fully refurbished or a new construction residential property. The property must be in growth markets and must produce a positive cash-flow. There are 13 tips to follow when buying a rental property for single family dwellings.

If you are a beginner in rental property investing, it very important to read good real estate books and learn from the savvy investors who have made fortunes by investing in some of the best real estate markets Birmingham Real Estate Market and Chicago real estate market. We also recommend these 8 hottest real estate markets 2018 for investors looking to build their portfolio of single family rental homes. Following the housing market decline in 2007, single family rental properties became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate. Single family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.

References:

Downtown investment of four billion to date, four billion in the future
https://www.bizjournals.com/atlanta/news/2018/03/08/atlantas-downtown-becomes-a-hot-real-estate-market.html

Metro growth rate
https://en.wikipedia.org/wiki/Atlanta_metropolitan_area#Demographics

10% growth rates in home prices                                            http://www.homebuyinginstitute.com/mortgage/buying-in-atlanta-georgia-2018

Days on market data
https://atlanta.curbed.com/2018/4/17/17247758/atlanta-housing-prices-sales-remax

Grant Park, Hanover West
https://www.mashvisor.com/blog/atlanta-real-estate-market-investments-2018/

Housing price dip                                                                                        http://www.atlantamagazine.com/list/where-to-live-now-in-atlanta-2018/atlanta-real-estate-bubble-will-burst

Decatur rankings, Gwinnett County’s schools
https://www.ajc.com/news/local/you-live-one-georgia-best-suburbs/Ef0lUjpjyMhOQbRZ9uR7XJ

Alpharetta
https://www.movoto.com/guide/atlanta-ga/best-atlanta-suburbs

Buckhead                                                                                 http://metroatlantasuburbs.com/communities/buckhead-real-estate

Peachtree Heights West                                                      https://atlanta.curbed.com/2017/12/7/16746602/peachtree-heights-atlanta-hottest-neighborhood-2018

Ormewood Park                                                                             https://www.greatamericancountry.com/places/local-life/5-great-neighborhoods-in-atlanta

Old Fourth Ward                                                                 https://atlanta.curbed.com/2017/12/7/16746602/peachtree-heights-atlanta-hottest-neighborhood-2018

*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified.


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