US Atlanta, GA - USA Property Investing

not yet, just one of a number of things he's considering over the next 2 months.

 

Hello MTR,I'm just looking at an American building publication that I have subscribed to for quite awhile without taking all that much interest in,and decided to check out development approvals,proposals,etc,for the various parts of Atlanta, as I've read your interesting posts regarding that area and thought I'd like to learn more just for interest's sake.You certainly seemed to have targeted the right area at the right time as it now seems to be very much on the go with 40 new developments scheduled for the so-called MidTown district alone,one on them been a 38 level high rise building,apparently the tallest building since the recession to be built there.The magazine I receive is an industry publication rather than a investing one, and mainly reports on the health of the Building industry (either good or bad) over the entire country.I think Atlanta made the top 20 for building activity in all American cities,coming in at from memory no17. Again MTR,very well done,looks like your timing was spot on.Regards Terry.

 

Thanks TN
Good you are reading these types of reports, so you are seeing what we are seeing.

Building is cheaper in Atlanta than many other States, this also helps.

This is our latest which is basically building a new home, the house was in poor condition could not rehab, so timeframe will take slightly longer then the usual flips.

Demolition - Re Build 4 Bed 3 Bath Single Family Home - Atlanta

Will post our townhouse development which starts very soon. I am flying over in Feb to check out and meet some more people we have on the ground.

MTR

 

Here is some info on the Beltline if interested.

Atlanta BeltLine Overview // Atlanta BeltLine

 

I found that very interesting MTR. I really enjoy studying these type of reports.(especially on days like today when we have been rained off our building site) The internet has certainly opened up lots of opportunities for astute investors.So much information available on any subject if you have the time to sift through it all.A bit too late for me to worry about though,I'll just chase my tail around for another few years on the building sites and that will be that I suppose.Regards Terry.

 

Just keep reading and learning, its not too late for Atlanta.

MTR

 

Just out of interest for those thinking of investing in a different country, how do one handle the exchange rate risk?

 

Currency not in our control, however our strategy today is targeting 20-30% margins in short time frame and sweet spot is 72-75 Aud
Downward trend of aud $ is helping overall investment
if you rinse and repeat use profits US$ then you can tack 35-40% on profit due currency play, hope this makes sense.
Complicated stuff ...

 

Double my money in nearly 12 months.

You will see my townhouse settled in Feb 2016 (listed on Zillow)
Estimated Value today - $66,000.

I have also checked out comparable sales and this is about right.

5594 Fair Creek Way, Lithonia, GA 30038 | Zillow

What I am also seeing is the prices for the SFH (Single Family Homes) are continuing to rise, with some of home values now hitting $160,000, as long as there is demand and not enough stock there will be upward trend. Inventory still very low at 30 days.

 

Is this property now tenanted? If so, how hard is this to arrange?

33k seems ridiculous, well below replacement cost - what do you have it insured for?

I was just in Hayden (Colorado) and was looking at cheap priced houses around the area - seems returns are very, very healthy, I am just unsure as to how hard it is to get a solid tenant.

 

Right, I would have thought Colorado will be a much higher entry level?

Easy to get tenants in Atlanta in fact you will have more than 1 applicant for sure

This property currently rents for $895 pm

Have you checked out the Atlanta renovation flips do a search on these

 

Here is a link on Atlanta, USA, August 2016. Median house price at this time was under $200,000, as you this market continues to rise

Gasp! Atlanta housing prices have hit a record high

According to Zillow we may see median house price hit $260K above.


Atlanta Market Overview
Data through Dec 31, 2016

• $201,600 ZHVI
  The Zillow Home Value Index is the median Zestimate valuation for a given geographic area on a given day.
  
  
• 5.8% 1-yr forecast
  The Zillow Home Value Forecast is Zillow's prediction of what the Zillow Home Value Index will be one year from now.
  (Dec 31, 2017)
• $262,500 Median listing price

 

This is a cool link, a general overview on all US markets in general, click the State

http://www.economist.com/blogs/graphicdetail/2016/08/daily-chart-20

 

Just an update, in Atlanta at the moment, today we are going commercial shopping, prime location we have yet to run the numbers to see if this one works. We know the location is brilliant.

We have also had our eye on another commercial property where we can add value due to the large land component, this one provides 8% returns, but the real clincher here is the fact that we can build townhouses/apartments add value and cash flow We have been talking to the seller and have some way to go yet.

MTR

 

update .... just purchased a little gem today, closing in 4 weeks.

SFH (single family home), 3 bedroom home, Beltline Atlanta.

This entry level near impossible to source at the moment, it did not hit the market one of our contractors gave me the lead and just jumped on it.

Purchase Price $52,000
Reno/rehab $12,000
Closing $3000

Rent - $950 per month

If you want higher yields you need to buy multi family units, however these are even harder to source.

The idea with this property is to basically rent it out and hold as it will be cash flow positive as this market continues to see ongoing growth

Once the deal has closed and contractor renovated the property I will post photos.

 

Two other offers came into play, I had to dip in an extra $1200
Contractors will be starting on renovating as soon as possible

Currently working with another property manager and am negotiating far more attractive terms. The only way you can do this is by having volume, giving them 20 properties, this of course will benefit everyone.

Property management has always been a tough gig in US, get this right and more $ in your pocket.

MTR

 

One of my favourite threads. It would be a dream to be playing with capital in the US. There's always places to find growth. I think right now Florida is seeing a lot of its regions experience substantial growth too.

Wish I had the guts to convert some Aussie $$ into USD and just go there.. Unless ts possible to work with someone else there while learning?

 

Thanks, this was a crazy low price

Keep researching US market

We are also looking at a commercial property in Florida, another very good market

To be perfectly honest I think just about every market in USA is rising, even Detroit

know someone who has 15 properties in this market and still buying up, it's a growth play, not cash flow because you will be lucky to get your rent. I personally would not touch this market, don't have the stomach for undesirable tenants. Much better markets to play in

 

Just about 1 week away from renovating my latest purchase which ended up costing me around $53,000 and $12,000 renovation, around 8% net yield, significantly less in terms of yields than my property purchases in 2011, as prices have soared. This is a smaller property but within the Beltline of Atlanta, buying for upside/growth.

In US they have what is called section 8 tenants, where the Government pays the rent, client must fit xx criteria. Know US investors who rent to section 8, this may be my first section 8 tenant, received a section 8 application for this property last week.

The 4 Best Things About Renting to Section 8 Tenants

 

Thanks for sharing all this information MTR. So many ways to make money.