How To Find & Buy Good Rental Home Investments in Atlanta
Finding the right deal is perhaps the most essential step in making property investment successful. As the expression goes “you make your money when you buy it”. First, let’s be clear that we are not talking about “flipping”. Flipping is work (ordinary income, a job). We are talking about a buy and hold investment.
Start by Identifying Your Target Finding a “good” rental house is unique to each investor. Some investors are willing to take big chances in exchange for the possibility of big returns. Other investors are more cautious. How important is monthly cash flow? Appreciation?
Where to Look
• Foreclosures & Distressed Owners – you can subscribe to EquityDepot.net to see properties and owners that are being advertised to be foreclosed upon on the 1st Tuesday of the next month. You may choose to contact the owner to make a deal before the auction. You may show up to participate in the auction. Understand that buying at auction may be profitable but it is also risky because you seldom get a chance to inspect the house you are buying.
• Roofstock.com – Roofstock offers properties in different markets around the country, including Atlanta. They will have the property inspected and appraised then advertise it for sale. Often the property already has a tenant in place so you buy a house that is ready to go.
• Investor Groups – In Metro Atlanta you have GAREIA (Georgia Real Estate Investors Assn.) and Atlanta REIA. In either setting you will meet people that own rental houses and you might make a deal directly with the seller in an effort to save money on the commissions. But which party is saving on the commission?
• MLS – Assuming you are not a licensed agent, you can find an agent to take you around and see all the houses you found on Realtor.com or Zillow. Then you can calculate the market rent, the amount needed to make it rent ready after closing, estimate the amount to budget for rent lost due to vacancy and delinquency, and estimate how much to budget for maintenance and repairs.
• Excalibur Homes, LLC – we have the data, from our 1600+ rental houses, to know how much a rental house will rent for and we know how much to budget for vacancy, delinquency, maintenance & repair. We know that these amounts vary for A, B, and C quality properties and we know that these amounts vary based on the age of the house. We teach classes on cash flow analysis and can provide you with the details needed for you to make an informed decision. Then our property managers will need to stand behind the rental forecast by renting it for the amount we projected.
Getting Started In the words of Robert G. Allen “How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case.” Get started soon and let time perform it’s magic on your equity. A comfortable retirement requires good planning. Plan your retirement, then execute your plan.
