Because there are so many possibilities available to you as an Atlanta real estate investor in Georgia, how do you decide on your next real estate investment? Here are six characteristics to look for in a potential Atlanta investment property:
First and foremost, you must consider the affordability of the investment property in question. To begin with, you must be able to afford the buying price, regardless of whether you are paying cash or taking out a loan. If you are paying in cash, you must ensure that you have enough funds to meet the purchase price as well as any closing costs, association or transfer fees that may be incurred in the process of purchasing the property. Once you’ve determined whether or not there is an association, you’ll need to determine whether or not you can afford to pay the association costs if you aren’t collecting rent right immediately. If you plan on securing a loan to purchase this property, you will need to conduct some preliminary research in order to locate a lender who is willing to originate loans for investment properties of this nature. Keep in mind that obtaining a financing for vacant property is more harder than obtaining a loan for a residential development.
The demand for your Atlanta investment property is the next item you should look out for. When purchasing a rental property, ensure that the market is not already saturated with rental homes offered for purchase. If this is the case, you may have to offer a lower-than-market rent in order to attract a tenant immediately. If the rent in Atlanta is lower than the rent in other regions, there may not be as much demand for that type of property as there would be in other areas. If it is reasonably high, it indicates that the property is in high demand or is in a desirable location, and it may be worth paying the extra money for the property. You want to make certain that your home can generate at least market rent in order to generate a reliable return on your investment.
Attractiveness on the outside
In addition to the property’s curb appeal, another crucial factor to consider when making an investment in Atlanta is its location. You want to make sure it appears to be clean and well-maintained at all times. No one wants to live in a house that is gloomy, cluttered, and depressing. It needs to be freshly painted, and the landscaping may need to be re-done as well. Finding an investment property that already has this taken care of is a terrific way to make significant savings. If this is not the case, you will need to set aside some additional funds to ensure that the home is in excellent condition.
Problems with the Structure
The structure of the property is an extremely significant feature to look for when purchasing an investment property in the Atlanta area. This is where the services of an inspector are required. They have received specialized training and are equipped with specialized equipment to detect any structural problems with the property. It is likely that if you are taking out a loan to purchase this investment property, the bank will want an examination to ensure that the monies they are lending to you are being invested in a sound construction.
Something else to look for in your Atlanta investment property is something that distinguishes it from the competition. For some, it could be a unique waterfall into the pool, or it could be a recycled table that has been transformed into a dry bar on the back porch, or it could be a cluster of fruit trees on the property. Prospective renters or buyers may fall in love with the house as a result of all of its unique characteristics and wish to make it their own.
Strategy for Exiting
One of the most significant features to look for in an Atlanta investment property is an effective exit strategy. You must make preparations in advance. Examine the current patterns in the area and make certain you understand if a decline or an increase is on the horizon. If people begin to migrate out of the neighborhood and into a different region, you will need to liquidate your investment because the market rent may begin to decline in order to attract new renters to the property. If the value of your home begins to decline too rapidly, you may be forced to sell your investment. If you personally appreciate the house, you might want to consider making it your permanent residence.