Ultimate Atlanta Real Estate Investing Guide for 2024

The term BRRRR is a description of a long-term investment plan — Buy, Rehab, Rent, Refinance, Repeat. If you want to increase your investments, the BRRRR is a proven method to use. It is essential that you be able to obtain a “cash-out” refinance for the method to be successful.

You enhance the value of the property above what you spent buying and rehabbing the asset. Then you get a cash-out refinance loan that is computed on the larger market value, and you extract the balance. You use that money to buy another investment property and the operation begins anew. This strategy helps you to reliably enhance your assets and your investment revenue.

If your investment property portfolio is large enough, you might outsource its oversight and generate passive income. Discover the best Atlanta property management companies by browsing our directory.

Factors to Consider

Population Growth

The rise or downturn of a community’s population is a valuable barometer of the region’s long-term appeal for lease property investors. If the population increase in a community is high, then additional renters are definitely relocating into the region. Relocating employers are attracted to growing regions providing reliable jobs to families who relocate there. A rising population develops a stable base of tenants who can survive rent increases, and a vibrant property seller’s market if you need to unload any assets.

Property Taxes

Property taxes, ongoing maintenance spendings, and insurance specifically influence your revenue. Rental assets located in unreasonable property tax communities will provide weaker returns. If property tax rates are too high in a specific location, you will need to search elsewhere.

Price to Rent Ratio

The price to rent ratio (p/r) is a comparison of median property values and median lease rates that will show you how high of a rent the market can handle. The amount of rent that you can demand in a location will determine the amount you are willing to pay depending on the time it will take to repay those funds. A large p/r informs you that you can collect less rent in that area, a low p/r tells you that you can demand more.

Median Gross Rents

Median gross rents demonstrate whether a location’s rental market is strong. Search for a consistent increase in median rents during a few years. Shrinking rents are a bad signal to long-term investor landlords.

Median Population Age

The median citizens’ age that you are searching for in a vibrant investment environment will be near the age of salaried individuals. You’ll find this to be true in markets where people are relocating. If you find a high median age, your stream of renters is shrinking. An active economy can’t be maintained by retired people.

Employment Base Diversity

A diversified employment base is what a smart long-term rental property owner will hunt for. When the citizens are concentrated in a couple of significant companies, even a little disruption in their business might cause you to lose a great deal of renters and expand your exposure immensely.

Unemployment Rate

High unemployment leads to smaller amount of renters and an unpredictable housing market. Historically profitable companies lose customers when other businesses retrench employees. This can create a high amount of retrenchments or fewer work hours in the city. Even people who have jobs may find it difficult to stay current with their rent.

Income Rates

Median household and per capita income data is a critical tool to help you pinpoint the regions where the renters you want are located. Rising incomes also inform you that rents can be raised throughout the life of the rental home.

Number of New Jobs Created

The more jobs are regularly being generated in a community, the more reliable your renter source will be. A market that produces jobs also increases the amount of participants in the real estate market. This gives you confidence that you can keep a high occupancy level and acquire additional rentals.

School Ratings

The quality of school districts has a strong influence on real estate market worth across the city. When an employer evaluates an area for possible expansion, they remember that good education is a must for their workers. Business relocation attracts more tenants. Homeowners who move to the region have a good influence on housing values. Superior schools are a necessary ingredient for a strong real estate investment market.

Property Appreciation Rates

The essence of a long-term investment approach is to hold the property. Investing in real estate that you want to hold without being confident that they will appreciate in market worth is a formula for failure. You do not need to allot any time surveying communities with unsatisfactory property appreciation rates.

A short-term rental is a furnished unit where a tenant resides for shorter than four weeks. The nightly rental prices are always higher in short-term rentals than in long-term rental properties. With tenants coming and going, short-term rentals need to be repaired and cleaned on a constant basis.

Typical short-term renters are backpackers, home sellers who are waiting to close on their replacement home, and people on a business trip who want a more homey place than a hotel room. Anyone can transform their home into a short-term rental unit with the know-how made available by online home-sharing portals like VRBO and AirBnB. An easy technique to enter real estate investing is to rent a residential property you already possess for short terms.

Vacation rental landlords necessitate dealing personally with the tenants to a greater degree than the owners of longer term rented units. That leads to the owner having to frequently handle grievances. You might want to defend your legal liability by engaging one of the top Atlanta investor friendly real estate attorneys.

Factors to Consider

Short-Term Rental Income

You have to determine the amount of rental revenue you’re aiming for according to your investment strategy. A quick look at a market’s current standard short-term rental rates will tell you if that is a strong city for your endeavours.

Median Property Prices

Thoroughly compute the amount that you can spare for additional investment assets. Search for locations where the purchase price you prefer matches up with the existing median property prices. You can adjust your property hunt by estimating median values in the community’s sub-markets.

Price Per Square Foot

Price per sq ft could be confusing if you are examining different properties. A house with open entryways and vaulted ceilings cannot be contrasted with a traditional-style property with more floor space. If you remember this, the price per sq ft can provide you a basic estimation of local prices.

Short-Term Rental Occupancy Rate

The demand for more rental units in a city can be verified by studying the short-term rental occupancy rate. A high occupancy rate means that an extra source of short-term rentals is required. If property owners in the area are having challenges renting their current properties, you will have trouble finding renters for yours.

Short-Term Rental Cash-on-Cash Return

A short-term rental’s cash-on-cash return will tell you if the property is a prudent use of your cash. Take your expected Net Operating Income (NOI) and divide it by your investment cash budget. The resulting percentage is your cash-on-cash return. The higher the percentage, the sooner your investment will be recouped and you’ll begin receiving profits. Sponsored purchases can show better cash-on-cash returns because you will be utilizing less of your own cash.

Average Short-Term Rental Capitalization (Cap) Rates

Another measurement indicates the market value of an investment property as a cash flow asset — average short-term rental capitalization (cap) rate. A rental unit that has a high cap rate as well as charging average market rental rates has a good value. If investment real estate properties in a city have low cap rates, they generally will cost more. You can get the cap rate for potential investment real estate by dividing the Net Operating Income (NOI) by the market worth or asking price of the property. This gives you a percentage that is the annual return, or cap rate.

Local Attractions

Short-term rental units are desirable in communities where visitors are drawn by activities and entertainment spots. Tourists come to specific cities to enjoy academic and athletic activities at colleges and universities, be entertained by competitions, cheer for their kids as they compete in kiddie sports, have the time of their lives at yearly festivals, and stop by adventure parks. Outdoor scenic attractions such as mountains, waterways, beaches, and state and national parks can also attract potential tenants.

To fix and flip real estate, you should buy it for below market price, perform any required repairs and enhancements, then dispose of it for full market worth. Your assessment of renovation spendings has to be correct, and you should be able to purchase the property for lower than market worth.

You also have to evaluate the resale market where the home is located. You always need to check the amount of time it takes for homes to close, which is shown by the Days on Market (DOM) indicator. To successfully “flip” real estate, you have to resell the rehabbed house before you are required to spend funds maintaining it.

To help motivated home sellers discover you, enter your business in our catalogues of cash real estate buyers in Atlanta LA and real estate investors in Atlanta LA.

Also, search for real estate bird dogs in Atlanta LA. Professionals on our list focus on securing little-known investments while they’re still off the market.

Factors to Consider

Median Home Price

When you look for a profitable location for home flipping, look at the median housing price in the district. Lower median home values are a hint that there should be a good number of houses that can be acquired for less than market value. This is a necessary feature of a fix and flip market.

When market data signals a sharp drop in property market values, this can point to the accessibility of potential short sale houses. You will find out about possible investments when you partner up with Atlanta short sale facilitators. Learn more regarding this kind of investment detailed in our guide How to Buy Short Sale Property.

Property Appreciation Rate

The changes in property market worth in a city are crucial. You’re looking for a reliable growth of local property market rates. Home market values in the region need to be increasing constantly, not abruptly. When you are purchasing and selling quickly, an unstable environment can harm your venture.

Average Renovation Costs

A comprehensive analysis of the area’s renovation expenses will make a huge influence on your area selection. The time it takes for acquiring permits and the local government’s requirements for a permit application will also impact your plans. You need to be aware if you will have to use other specialists, such as architects or engineers, so you can be ready for those costs.

Population Growth

Population statistics will inform you if there is solid need for residential properties that you can supply. When the population is not increasing, there isn’t going to be an adequate source of purchasers for your real estate.

Median Population Age

The median population age can also show you if there are potential homebuyers in the region. It better not be lower or higher than that of the average worker. Workforce can be the people who are potential homebuyers. The needs of retirees will probably not be included your investment project strategy.

Unemployment Rate

If you run across an area that has a low unemployment rate, it is a good indication of profitable investment prospects. It should certainly be lower than the US average. When it is also less than the state average, that is much more desirable. To be able to acquire your improved homes, your clients are required to work, and their clients as well.

Income Rates

Median household and per capita income are a reliable indicator of the scalability of the home-purchasing market in the location. When home buyers purchase a house, they usually have to borrow money for the home purchase. Home purchasers’ ability to borrow a loan hinges on the level of their salaries. Median income can let you determine whether the standard homebuyer can afford the property you intend to market. You also prefer to see incomes that are expanding continually. To keep pace with inflation and increasing building and material expenses, you should be able to periodically adjust your rates.

Number of New Jobs Created

The number of jobs created per annum is valuable data as you contemplate on investing in a target market. A growing job market communicates that a higher number of prospective home buyers are comfortable with buying a home there. Fresh jobs also draw people arriving to the city from other places, which also revitalizes the property market.

Hard Money Loan Rates

Investors who sell upgraded homes often use hard money funding in place of traditional mortgage. This plan enables them complete lucrative projects without hindrance. Discover top hard money lenders for real estate investors in Atlanta LA so you can review their charges.

If you are unfamiliar with this funding product, learn more by reading our informative blog post — Hard Money Loans Guide for Real Estate Investors.

As a real estate wholesaler, you enter a contract to purchase a home that some other real estate investors will be interested in. But you don’t buy the home: after you have the property under contract, you get an investor to take your place for a fee. The contracted property is bought by the real estate investor, not the wholesaler. The wholesaler does not liquidate the residential property — they sell the rights to buy it.

This method requires using a title company that is knowledgeable about the wholesale purchase and sale agreement assignment operation and is able and inclined to manage double close purchases. Look for title companies that work with wholesalers in Atlanta LA in our directory.

Our extensive guide to wholesaling can be found here: A-to-Z Guide to Property Wholesaling. While you go about your wholesaling venture, place your company in HouseCashin’s directory of Atlanta top real estate wholesalers. This will help your future investor purchasers find and reach you.

Factors to Consider

Median Home Prices

Median home prices are essential to discovering places where homes are being sold in your real estate investors’ purchase price point. A community that has a good supply of the marked-down investment properties that your clients want will have a lower median home price.

A sudden drop in housing worth could lead to a large number of ’upside-down’ homes that short sale investors look for. Wholesaling short sales frequently delivers a list of unique advantages. Nonetheless, there may be liabilities as well. Obtain more information on how to wholesale a short sale with our exhaustive explanation. When you’ve resolved to try wholesaling short sale homes, be certain to employ someone on the directory of the best short sale lawyers in Atlanta LA and the best foreclosure lawyers in Atlanta LA to advise you.

Property Appreciation Rate

Median home value fluctuations explain in clear detail the housing value picture. Investors who want to liquidate their properties in the future, such as long-term rental investors, need a region where real estate purchase prices are increasing. A weakening median home price will indicate a vulnerable rental and housing market and will exclude all types of investors.

Population Growth

Population growth statistics are an important indicator that your potential real estate investors will be aware of. When they see that the population is growing, they will conclude that more housing units are a necessity. This combines both leased and ‘for sale’ real estate. If a population isn’t expanding, it doesn’t need new houses and real estate investors will invest somewhere else.

Median Population Age

A desirable residential real estate market for real estate investors is agile in all areas, notably renters, who turn into homeowners, who move up into larger houses. This requires a robust, reliable employee pool of people who are confident enough to buy up in the residential market. A market with these features will display a median population age that is the same as the employed citizens’ age.

Income Rates

The median household and per capita income should be rising in a promising residential market that investors want to participate in. Income improvement demonstrates a city that can handle rent and real estate listing price increases. That will be important to the property investors you want to work with.

Unemployment Rate

The community’s unemployment rates will be a crucial aspect for any targeted wholesale property purchaser. Overdue rent payments and default rates are widespread in markets with high unemployment. This is detrimental to long-term investors who want to rent their investment property. Investors cannot depend on renters moving up into their homes if unemployment rates are high. This is a problem for short-term investors buying wholesalers’ contracts to repair and resell a house.

Number of New Jobs Created

Understanding how frequently new employment opportunities are generated in the city can help you determine if the house is situated in a stable housing market. Job generation suggests a higher number of employees who have a need for a place to live. Whether your buyer pool is made up of long-term or short-term investors, they will be attracted to a location with regular job opening generation.

Average Renovation Costs

An essential factor for your client real estate investors, specifically house flippers, are renovation expenses in the market. The cost of acquisition, plus the expenses for repairs, should total to lower than the After Repair Value (ARV) of the house to create profit. The less expensive it is to renovate a home, the more profitable the area is for your prospective purchase agreement buyers.

Note investors purchase debt from mortgage lenders if they can get it below the outstanding debt amount. This way, the purchaser becomes the lender to the original lender’s debtor.

Performing loans mean loans where the debtor is regularly current on their mortgage payments. Performing loans earn stable revenue for investors. Some mortgage note investors prefer non-performing loans because if the mortgage note investor cannot successfully rework the loan, they can always purchase the collateral at foreclosure for a low price.

Eventually, you may accrue a number of mortgage note investments and lack the ability to oversee them by yourself. In this event, you can employ one of mortgage loan servicing companies in Atlanta LA that would essentially turn your investment into passive income.

When you decide to follow this investment strategy, you ought to include your project in our directory of the best real estate note buying companies in Atlanta LA. Being on our list puts you in front of lenders who make profitable investment opportunities available to note investors such as you.

Factors to Consider

Foreclosure Rates

Low foreclosure rates are a sign that the region has investment possibilities for performing note buyers. If the foreclosures are frequent, the region could nevertheless be profitable for non-performing note investors. But foreclosure rates that are high may indicate a weak real estate market where selling a foreclosed unit might be challenging.

Foreclosure Laws

Note investors are required to know their state’s regulations concerning foreclosure prior to buying notes. They’ll know if their law dictates mortgages or Deeds of Trust. You might need to get the court’s permission to foreclose on a mortgage note’s collateral. You don’t have to have the court’s approval with a Deed of Trust.

Mortgage Interest Rates

Purchased mortgage notes contain an agreed interest rate. This is a significant determinant in the profits that you earn. No matter the type of mortgage note investor you are, the loan note’s interest rate will be critical to your forecasts.

Traditional interest rates may differ by as much as a quarter of a percent throughout the US. The higher risk assumed by private lenders is accounted for in bigger loan interest rates for their loans in comparison with traditional mortgage loans.

Profitable mortgage note buyers regularly check the interest rates in their region set by private and traditional mortgage lenders.

Demographics

A region’s demographics details assist mortgage note investors to focus their efforts and properly use their assets. The community’s population growth, unemployment rate, job market growth, wage standards, and even its median age hold pertinent data for investors.
Investors who invest in performing mortgage notes search for markets where a large number of younger people maintain good-paying jobs.

The same place may also be profitable for non-performing note investors and their exit plan. A strong local economy is needed if investors are to reach homebuyers for collateral properties they’ve foreclosed on.

Property Values

The greater the equity that a homebuyer has in their home, the better it is for you as the mortgage lender. This enhances the likelihood that a possible foreclosure auction will make the lender whole. Appreciating property values help raise the equity in the property as the homeowner reduces the balance.

Property Taxes

Most borrowers pay property taxes via lenders in monthly portions together with their loan payments. The lender passes on the payments to the Government to make certain the taxes are paid promptly. If the borrower stops paying, unless the lender takes care of the property taxes, they won’t be paid on time. If a tax lien is put in place, it takes first position over the your loan.

If an area has a history of rising tax rates, the combined house payments in that market are regularly growing. This makes it complicated for financially challenged homeowners to make their payments, and the mortgage loan could become delinquent.

Real Estate Market Strength

A place with increasing property values promises good potential for any mortgage note buyer. The investors can be confident that, when necessary, a defaulted collateral can be sold at a price that makes a profit.

A vibrant market may also be a lucrative community for creating mortgage notes. It’s an added stage of a note investor’s career.

A trust investing in income-generating properties and that sells shares to others is a REIT — Real Estate Investment Trust. This was originally done as a way to permit the everyday investor to invest in real property. The everyday investor is able to come up with the money to invest in a REIT.

Shareholders’ participation in a REIT is passive investing. REITs oversee investors’ exposure with a diversified selection of assets. Shares may be unloaded whenever it’s agreeable for you. One thing you can’t do with REIT shares is to determine the investment assets. Their investment is limited to the real estate properties chosen by the REIT.

Mutual funds owning shares of real estate businesses are known as real estate investment funds. The investment properties are not possessed by the fund — they’re held by the companies the fund invests in. Investment funds may be an inexpensive method to combine real estate in your appropriation of assets without needless liability. Fund shareholders might not collect ordinary distributions like REIT members do. The worth of a fund to an investor is the projected appreciation of the worth of the fund’s shares.

You can locate a real estate fund that focuses on a distinct type of real estate business, like commercial, but you can’t propose the fund’s investment properties or locations. As passive investors, fund members are glad to allow the management team of the fund make all investment choices.