Other Free Encyclopedias » Online Encyclopedia » Encyclopedia - Featured Articles » Featured Articles: 0 Car Finance - What Does 0% Car Finance Mean to Black Tv Stands

Atlanta Rental Property - How to Invest in Atlanta Rental Property

real estate investment investors

Atlanta, sometimes referred to as the Atlanta Metropolitan Area or the Metropolitan Atlanta Area, is the capital city and most populous city in the State of Georgia. Metro Atlanta has more than 5.6 million people, making it the seventh-largest city nationally in terms of population. The most populous metropolis in the Southeastern United States, Atlanta has experienced explosive growth since the late 1970s adding about 1.1 million residents between 2000 and 2008. Atlanta is considered to be a top business city and a primary transportation hub of the Southeastern United States—Hartsfield–Jackson Atlanta International Airport has been the world’s busiest airport since 1998. It should be obvious at a glance that the Atlanta metropolitan area is one of the country’s fastest growing areas. Another fact is that all of those people need someplace to live.

If you are interested in investing in Atlanta rental property remember that real estate is a local business. In addition to becoming knowledgeable concerning the various real estate investment strategies and techniques you must also familiarize yourself with Atlanta’s real estate trends. For example, real estate website Zillow.com has a proprietary home value index that compares local markets with the national scene. From 2006 through April 30, 2010 Atlanta (along with the rest of the nation) experienced a decline in home values. Economists and experts refer to the vaunted S&P/Case-Shiller home-price index, a closely watched gauge of U.S. home prices while ascertaining that the market nationally is perhaps two-thirds of the way through its ultimate total decline in this cycle. This spells opportunity for the savvy real estate investor. Once you’ve made the choice to invest in rental property, your real effort starts. Locating a money-making rental property typically takes time, contacts and lots of research. Here’s what you need to know to get started:

Know your investment strategy and your risk tolerance

Just like any other investment, you need to have a firm idea of how long you plan to own your rental property before you buy it. Keep in mind you usually face more investment risk with a shorter time horizon; although your rental property will almost surely appreciate over twenty to thirty years, it could definitely lose value in the next five years, particularly if you’re buying during a tough time in the Atlanta real estate market. Only a larger potential annual return will compensate for that risk. For most small real estate investors, long-term investments make the most economic sense. Long-term investment will give you ample time to weather any fluctuations in the real estate market.

Establish your Atlanta rental property network

When you first begin investing in rental properties in Atlanta you would be wise to build a strong network. Veteran Atlanta landlords find their rental properties in an assortment of ways. A number of investors search for foreclosures and pre-foreclosures, networking with public records clerks, employees in the Lis Pendens office, or bank employees who know which Atlanta properties are about to be sold. Some run ads in local newspapers. Other investors work with real estate agents or Realtors who alert them to possible investment opportunities.

Many experienced landlords recommend joining a local landlord association, property owner’s association, or real estate investment association (REIA) to develop these much-needed connections. Consider local groups as well as the National Real Estate Investors Association and the Georgia Real Estate Investors Association (GaREIA). You can bolster your real estate investment education; obtain tools, education, training and mentoring.
Through investor meetings, networking, and related activities, you can also find potential partners, service providers, as well as what properties are for sale. You can also try approaching other investors or property owners directly to see if they are willing to sell. Try calling the numbers advertised on rental ads in the classifieds, touring neighborhoods looking for “for rent” signs, and by speaking with any investors you know personally.

Get your financial house in order

Having a good credit score and profile, and low credit card and other consumer debt increases your chances of getting a decent loan. Remember lenders generally require larger down payments, higher interest rates, and an all around stronger financial picture when you’re buying rental property since they know people are statistically more likely to default on investment property than they are on their primary residence. Setting aside cash reserves will ensure you can deal with unexpected repairs, vacancies, and market fluctuations. Setting aside at least one month’s rent for each unit is a good start. Another tactic is to establish a line of credit, secured either by the property or your own home, to cover more serious expenses.
Make certain your rental income will cover your out-of-pocket expenses including the mortgage payment on your rental property, taxes, insurance, maintenance, repairs and a vacancy rate of approximately 5%. (For example, if you have five units, expect at least one to be vacant three months each year. If you can break even, you will be positioned to profit from any price appreciation in addition to tax breaks available to rental property owners.

The future of rental properties in Atlanta

Atlanta’s rapidly growing population and profitable real estate market could provide you the opportunity to generate cash flow as well as fund your retirement. Become familiar with local property management companies, contractors, online listing services, wholesalers, online and offline methods of networking and generating leads, and build your network. Currently the Atlanta metropolitan area is one of America’s fastest growing areas. The suburbs continue to spread out – particularly to the northwest and northeast – and In-town neighborhoods are experiencing a renaissance as well. During the first decade of the 2000’s Atlanta experienced rapid infill development in and around the old streetcar suburbs located north and northeast of Downtown, in Midtown, the Old Fourth Ward and along the Belt Line. Many former industrial and warehouse spaces were converted into condos, apartments, and retail space. 2005 ushered in the opening of mixed-use urban district Atlantic Station, the largest former brownfield redevelopment in the nation (at that time). Of course this sort of growth has slowed to some extent during the economic crisis of 2008-2010. Activity nonetheless continues into more and more neighborhoods in Atlanta such as Midtown West.

Atlantic City Shows - Atlantic City Shows for Families - Finding Shows in Atlantic City, Family-Themed Shows in Atlantic City - Family Friendly Atlantic City Entertainment [next] [back] Atlanta Job Search - Ways to Maximize Your Atlanta Job Search

User Comments

Your email address will be altered so spam harvesting bots can't read it easily.
Hide my email completely instead?

Cancel or