5 Must-Haves When Buying Rental Property in Atlanta, GA
Renters Warehouse Blog
There's a reason investment rental properties have become one of the most popular ways to build an investment portfolio. One of the greatest appeals is that the path to profit is clear and you don't have to brave the murky waters of the stock market to see the value of investment. Rental homes are inherently valuable, as maintained properties consistently rise in price and value over time. The profits you make from rent, which also covers the monthly and annual costs of the house, are a bonus on top of that.
Investment property is a great way for someone with savings to get into investment and start building both a source of income and an impressive collection of net-worth assets. And if you already have a few rental properties, it's always beneficial to add to your portfolio with new rental homes in housing markets on the rise.
This is exactly why Atlanta, Georgia is such a great place to start looking for rental investment opportunities.
The Atlanta Rental Market
Atlanta is the definition of a housing market on the rise. Having recently gone through a real estate depression, housing prices are still below the national average while rental prices are peaking up noticeably above the national average in the $1,300 range. The economy is in great shape and growing as the population continues to rise.
These conditions together make a great environment for investors to spring on the great home deals available. There are many older homes that need just a little TLC to become ideal rental homes along with newer and larger homes for more upscale rental clients. No matter what style of home investor you may be, Atlanta has more than a little for everyone and their tenant clientele.
Of course, before you settle on a home to invest in and make a bid, it's important to ensure that any candidate-property meets all your must-have qualifications.
5 Atlanta Investment Property Must-Haves
1) Good Neighborhood with Medium-High Rental Prices
First and foremost, check the local neighborhood rental prices. You may have found a cozy purchase opportunity that you can spruce up into a really nice rental home, but your max rent is capped by the neighborhood averages. After all, you don't want to be asking the highest rent in the neighborhood or no one will bite. Look for smaller homes in neighborhoods with above-average rental prices for your best ROI opportunities.
2) Passes All Major Inspection Points
Next, put that house through it's paces. Whether it looks shabby or polished, bring in the licensed inspector and make sure it passes all the most important points of the inspection. It needs to be structurally sound with a good quality roof and a rock-solid foundation. It needs to be free of insects, clear of mold, and with electrical and plumbing systems that are still in good quality. Everything else can be touched up with fresh paint and new floors, but the inspection can help you avoid buying a lemon.
3) Satisfying Cap-Rate Returns
Any time you make an investment, it's important to ensure that you are satisfied with the rate of returns. In business, this is called ROI (return on investments) and in real estate this is called the cap-rate. Your cap rate is the percentage of your initial investments that you get back every year. So, for example, a 5% cap rate would mean that it will take 20 years before your full investment is paid back in the after-cost profits from rents. And if your cap rate is 20%, it will only take five years before the investment is repaid and that 20% becomes a profitable income instead.
4) Appealing Neighborhood Amenities
Atlanta is a large and diverse city with good schools and great shopping and restaurants. Be sure to look for homes that are close to the most appealing elements. Being within walking distance of a school, near a nice park, and conveniently close to an acclaimed shopping area can all help to attract tenants.
5) Property Management Plan
Finally, make sure you have a plan for property management. Even if you live in or near Atlanta, property management is a network of services and maintenance that ensures your tenants are well taken care of and your property is always well-maintained. Working with property managers is a smart choice for investors near and far because it makes sure that your tenants always have a team of experts to call no matter what happens or whether you are busy with other concerns.
Are you looking for investment rental opportunities in Atlanta, Georgia? Explore our unique inventory of fully leased off-market single family rental properties for sale! You can also swing by our Renters Warehouse office in Atlanta or contact us online to discuss your investment plans and how we can help.
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