The real estate scene in North Atlanta is pricey and competitive. There’s not a lot of inventory, and if you’re looking for an investment property, you’ll have to make sure you’re buying something that will make you money and be attractive to well-qualified tenants.
Investing in real estate is a good idea, especially in this market. You have remarkable opportunities to earn consistent cash flow and build a steady and impressive strategy for long-term ROI.
But, you have to do it right.
If you’re new to property investing, we strongly recommend that you establish some investment goals and then surround yourself with professionals. The more excellent help and guidance you can gather for yourself, the easier it will be for you to navigate a complicated North Atlanta real estate market.
We have some advice to share with new investors who want an extra shot at success when buying their first rental properties. Here’s what you need to know.
We don’t expect that you simply woke up one day and decided to be a real estate investor. Hopefully, you have spent some time exploring how, when, and why you want to become a real estate investor. If you’re ready to begin buying properties, you need to have an established set of investment goals. These will be important guideposts. Understanding what you’re hoping to accomplish, what your timeline is, how much you’re willing to spend to get started, and even how you plan to exit from various investments will help you buy the right rental homes.
Here’s an example that shows you why it matters: If you’re interested in short-term vacation rentals, you’re going to invest in a very different property than an investor who wants to focus on long-term single-family homes in HOA neighborhoods that will appreciate in value over 15 or 20 years. Your investment goals drive your investment decisions. You have to understand them and all the real estate professionals you choose to work with also have to understand them.
Decide what you’re hoping to achieve and prioritize your goals when you have more than one. This well-mapped plan will set you up for success and keep you from making impulsive decisions that don’t serve your needs.
Research both the sales market and the rental market in North Atlanta and any other area that you’ve targeted for potential investment properties.
National trends and figures will not help you.
Investment properties are actually super-local. The rental value of one home can be quite different than that of another home – even in the same neighborhood. If you understand the nuances and trends of the area in which you want to buy a property, you’ll have a better ability to negotiate.
Local market knowledge also helps once you own the property and you’re thinking about how to price it, which renovations to prioritize, and how to market the property when you’re looking for tenants.
You need to know who your ideal tenants will be. Are they families looking for good schools? Dog owners who need a fenced backyard? Perhaps you’re eyeing a neighborhood with professionals who want an easy commute to work or retirees who will want access to recreational and entertainment activities. All of this information will help you buy the right investment and prepare for how you’re going to rent it out.
New investors often struggle to realize that they’re actually running a business. That means every decision you make needs to be based on data and facts, not emotions.
Make sure you can look at this as a business, and not as a home. You won’t be living in the property. It doesn’t need to have all of the upgrades and finishes that you would select for yourself.
Think like a tenant. In fact, think like your ideal tenant. This will help you make the decisions that will earn you money rather than cost you money.
If you’re buying an investment property with the intention of renting it out, you’ll need to understand what’s required of you before you rent it, during the leasing period, and while a tenant is moving out. Familiarize yourself with:
It’s easy for new investors to make an expensive legal mistake, and that can set you back financially. Don’t make the easy mistakes; learn from others and make sure you have experts keeping you in compliance.
You’ll need some help from brokers, agents, attorneys, and even fellow investors. You’ll want a mortgage expert who can help with lending.
Most importantly, you need a property manager.
Don’t wait until after you buy your investment property to consult with professional North Atlanta property managers.
Leasing, managing, and maintaining a rental home is time-consuming. It requires a lot of knowledge and experience. Going it alone leads to easy and expensive mistakes.
A property management company will protect your investment, ensure you’re compliant with all state, federal, and local laws, and save you money on vacancy, turnover, and maintenance costs. You won’t have to worry about responding to tenants in the middle of the night or trying to decide how to manage a security deposit.
If you identify a good management company before you buy, you can access the resources and knowledge they have about rental rates, vacancy time, and competition. You’ll know how much rent you can expect to earn and how much time it may take to get the property ready for the rental market.
Are you feeling more prepared to invest in a North Atlanta property? We hope so. And, we’d also be happy to continue this conversation based on where you are and what you’re hoping to accomplish. Contact our team at Elite Property Management, and we’ll tell you more about how to succeed as an investor.
