Fast Forward - Atlanta GA - Property Market today

Thought I would start a thread on this one..... Its been a long time between drinks

I know at least 4 investors on PC who started buying in Atlanta in 2011 and have continued buying property in this market.
Results have been the same, spectacular growth and cash flow positive from day 1.

Then and Now

2011
Property price range from $35,000 - 50,000 (foreclosures), Single Family Homes
Renting for around $900 per month.
This one was purchased at $48,000 as per Zillow, today ($180K)
https://www.zillow.com/homedetails/5778-Belmont-Ridge-Cir-Lithonia-GA-30038/54451788_zpid/




2018
South Atlanta Property purchases
Today's price $180,000 and rising
Rent: $1400 per month (landlord market, multiple applicants)

What's really interesting is I started buying in the Beltline in Atlanta 2016/17 which is in the inner city HUB, in 2011 inner city considered run down BAD neighbourhood. However, with gentrification and government spending this has become very funky and in demand.

2017 - Paid $53,000 (205 Holderness St SW, Atlanta)
2018 - $203,000
Rent: $975 per month
https://www.zillow.com/homedetails/205-Holderness-St-SW-Atlanta-GA-30314/35844329_zpid/




So the Wholesaler picked this one up for $39,000
Sold it to me for $53,000 and today $203,000 close to 300% increase in value in just 18 months.

Another interesting factor about Atlanta is you get career tenants, they rent for life, I have at least 4 tenants since 2011...

MTR

 

Anyone in vegas ?

 

That reminds what happened to Emma, she was in this market big time, on somersoft threads.....
Vegas has had significant growth, like many of these markets that got hit hard, they have pretty much all come back to peak prices and some

I know she purchased in the Bahamas, moved there some time ago.

 

yes, i was using her..

was she in this forum at all ?

i presume you havent sold any ?

 

Yes Somersoft, not PC

Your experience?? Are you still holding in zuS

Sold 2 purchased 6 using 1031 exchange defer CGT
Wish we had this in Oz

 

very good with her.

also another lady, karina, was about to use her service too, but i pulled out.

i bought 3, sold 1. still holding 2.

pay all taxes. not using 1031 at all.

you think atlanta still a good place to invest in ? in current environment ?

 

Atlanta is brilliant, but no stock its hard to source properties

 

@MTR thats insane what you have done! High 5 to you! Do you see other areas with similar entry prices with big upside?

 

I also just purchased 11 properties in Detroit, MI
Cashflow 12-15% net returns

Focusing on suburbs that are hot.....trying to repeat Atlanta scenario

Banks are now financing in Detroit good sign
Hedge funds in Detroit another positive indicator

 

Close to closing on my first Atlanta one now. Obviously Im kicking myself that I didnt jump in many years ago (I was so close!), so getting the kinds of deals today, that MTR got years ago, isnt really possible in the 2018 environment.

Im purchasing in henry county and will be doing a rehab/reno prior to renting it out. In a month or two I'll repost with some numbers and hopefully the yield I'll be achieving once a tenant is found.

After this one I'll continue looking at the US. Either in other parts of Georgia state (outside of Atlanta) or other states entirely.

Atlanta is a mostly yield/slightly capital-growth play; whereas the next purchase will be 100% an aggressive yeild play.

The high yields will either be saved up to continue purchasing more in the US, or to aggressively pay down debt in the AU portfolio (which should help lift yields in AU a little bit more).

I say, when the AU market keeps throwing us lemons, ship 'em off to the US and make lemonade there, out of them!

 

Looking forward to seeing your purchase down the track is you care to share.

Atlanta still has legs and I wish I purchased more in 2011, would you believe and its been rising since 2011. It is also a strong rental market, its nice when you get career tenants, they never want to leave. This is brilliant on the cash flow.

There are most definitely other markets in US that are also rising. How it pans out will come down to the team on the ground, property management crucial.

All the best.

 

Wow your a machine!

Are your working with an BA on the ground there?

 

What are your thoughts on the AUD for someone looking to get in to US market for the first time though? The figures above would have been very nice at dollar parity (or better) when some got in a decade ago!

 

Clearly when AUD was at parity it was brilliant time to buy, those who jumped in are looking at around 40% profit just on the currency play.

I have been buying with a mixture of AUD and USD. I don't have an issue with this as my most recent buys have gone up in value which means I am making money and when/if selling its USD.

Couple things to consider, not so good using AUD but then again rent will be USD.
Its really dependent on whether there is money to be made and looking at the big picture, returns vs cash flow, vs capital growth

MTR

 

States winning - and losing - the American real estate game, a decade after the housing bubble burst | Daily Mail Online

 

MTR: how long is 1031 exchange cgt can be hold for ?

 

You have 45 days from sale of property to identify the replacement property/ies and 180 days to finalise sale.

CGT free if you sell again and keep using 1031 exchange

 

This market is still roaring, been booming since 2011........ this is 7 years.......are we close to peak????

Any thoughts from those in this market????

 

This article pretty much sums up what I am seeing in the Atlanta housing market. Low inventory available on lower priced homes causing multiple offers and price increases. The rental market is just as tight with multiple applications coming in on many properties. Very healthy market for a landlord. I continue to buy lower priced homes in this market when opportunities arise.

Atlanta home sales down again, prices rise

 

May I know who helps you to buy in Atlanta?