I like the areas south of Atlanta and that means outside of the Hwy. 285 circle. Inside and immediately around it, is really a life or death situation and I’m not willing to die over a property. That area is being rehabbed by developers who can do massive amounts of work at one time. It starting to looking nice, I am positive the hookers love their new views
I pulled together a bunch of data and dropped it into a spreadsheet. The results were amazing and that helped me narrowed my focus. I used crime stats, owner occupant %, rental occupant %, vacancy ratios, median income, median values, etc. I don’t like to be in areas where everything is a rental – for example College Park, Georgia 57% of the houses are rentals, but get this stat – another 25% are vacant. The crime rate for both property and person is an 8 (1-10 scale, 10 being worst). You won’t find me there LOL.
The city where I live is entirely too expensive for investment property, unless you can get something off the court house steps (yep that is how they do it here, I’ve been to a few auctions). I have watched million dollar homes go on the steps to the highest bidder – people show up with $500-$700K and bid against each other, it’s fun. The banks always protect their investment by opening the bid at the loan value plus all legal fees. Then it is up for grabs. You need to have cash – there are hundreds of thousands of dollars standing out on the steps the first Tuesday of the month in every county in Georgia. If you know your market, you can make tons of money. The foreclosures are advertised by law for one month prior to the sale. It’s very easy to find them and do your research.
The problem with the court steps for the areas I’m looking is that most of the foreclosures are relatively new purchases. The buyer hasn’t paid much down on their loans, however, they’ve lived there long enough to entirely trash the place. So you get a house that could be at 90% of the value, and also pay legal fees. No thanks, I’ll let the banks get it on their books and then make an offer. Another pitfall is if the owner files bankruptcy within 30 days of a court steps sale, the house goes back to them and you get your money back – without interest.
So to answer your original question ROFL! The areas I like a lot are: Jonesboro (parts), Ellenwood, Rex, Stockbridge, McDonough and if you like the higher-end properties Fayetteville. There are two military bases closing on the south side, so stay out of Lake City, Forest Park and Conley. People are smart so they are putting their houses on the market now. It’s going to be a disaster very soon – hey, let’s hope all the people constantly outbidding me go there for the deals LOL.
All of the locations I like have rental ratios of around 11-13%, vacancy ratios of 2-6% and an easy commute to Atlanta.
Yet another long winded answer Have a great day all. And if anyone is interested in properties were I’ve mentioned, I know the markets extremely well, if you have something in mind drop it to me in e-mail and I’ll let you know what’s up with it, there is no doubt I’ve been by it and probably inside LOL. You can search the areas at GAMLS.com.