Atlanta Investment Property (Forest Park, Riverdale, Union City: real estate, renter, low crime)

[nakana68]

Hi Guys,

I am new to this forum. So please be patient with me.

I am from Australia and am looking at investing in rental properties in Atlanta.
I have a lot of experience with investment properties in Australia. I realise that the US market is a totally different ball game.

I have made a few trips to US to research the market in the last year.
I have also decided that I can only invest in areas where I have identified a property management firm I can trust and also where I can obtain finance at 6% or better so I have a second layer of due deligence and risk sharing. On this basis, I have chosen Atlanta as one of the areas I would like to invest.

The property agent I have identified in Atlanta services the following suburbs:

1. Union City
2. Fairburn
3. Palmato
4. Riverdale
5. Jonesboro
6. Thornhedge
7. Rex

I have done my research on the numbers and am primarily investing for income and will take any capital gains if it comes as a bonus.

My question to the group is are there any specific areas in these suburbs that I must avoid? I have attached a map of the target area.

Any pointers or suggestions will be much appreciated.

Best Regards.

[AnsleyPark]

Commercial? If so, what type? Residential? If so, what type?

[Tort]

I think you could find a better area than that somewhere in the United States. I guess you know more about it than I do though. Seems like those areas will take a long time to appreciate, if ever.

[testa50]

What is the basis on which you should avoid one of the areas? Safety? Trajectory of the neighborhoods?

If I had to invest in one of those areas I would choose Fairburn probably. There was a lot of construction during the boom, and I think South Fulton will definitely develop more when/if the economy improves. Riverdale and Jonesboro are older suburbs that have declined in recent years--they are in Clayton County, which has had a really rough last few years.

If I were you, I would spend a good amount of time on this website:

Mapping the 2010 U.S. Census - NYTimes.com

You probably want a neighborhood that is growing in population and is at least somewhat demographically stable. My order of preference based on this would be:

Fairburn
Palmetto (farther away, more like the countryside)
Union City
Jonesboro
Riverdale

I would probably look into Coweta County if Palmetto is on the table. It's booming down there, even in this economy.

[Tort]

It's just hard for me to imagine that in the entire United States that those areas represent the best place to invest money.

[SW30303]

Just because properties in those areas are very cheap right now, does not mean they are good investments in residential or commercial real estate. I think Tort is right, there could be better places to invest, but I don't personally follow real estate that much right now to say where.

There are many factors to consider and I only can think of a few things right now. I would assume this investor wants a few small detached houses to rent out.

If I were an investor from another country, I would visit the areas I was interested in first.

If the selection is based on this first post, I would pick probably Fayette county on the southside to invest in, but I don't recommend being an out of town investor to anyone except maybe someone who can risk a lot of $$. If you have someone else management properties for you while you live far away, *more* things will go wrong and break.

I am very familiar with most of the Southside (Southern Crescent): I think Fairburn and Palmetto (South Fulton area) are probably the most stable of the areas mentioned.

Based on your post, I would do a lot more homework or give more details of what your intentions are in investing in real estate.

[10scoachrick]

Originally Posted by Tort

I think you could find a better area than that somewhere in the United States. I guess you know more about it than I do though. Seems like those areas will take a long time to appreciate, if ever.

Same post over in the Memphis forum. Wonder which 'play' will be a better investment .

[nakana68]

Hi All,

Thanks very much for your comments.

I understand there are a lot of other areas to invest in the US. I basically chose Memphis and Atlanta on the basis that the residential property management company that I know and trust provides services in these two areas. I also have built up a relationship with a Bank that will lend me 50% LTV for purchase of residential properties in the specified areas.

It is not easy for foreign investors to get finance in the US. So for now Memphis and Atlanta are the only choices available to me.

I am basically looking for single family homes in a good suburb (meaning areas where the crime level is low and rental demand is reasonable). I am interested in income and cash flow - not looking for capital appreciation -capital appreciation if any will be a bonus.

I have visited these areas a fe wtimes, drove around and looked at some properties.

I am looking for the locals perspective on these suburbs I have highlighted. ie:
1. Union City
2. Fairburn
3. Palmato
4. Riverdale
5. Jonesboro
6. Thornhedge
7. Rex

Are there any suburbs above that I should avoid as an invester. If you need specific information from me please ask.

From what I have heard so far, Union City, Fairburn, and Palmato are good areas. I am more interested in knowing if there are areas to avoid.
Based on my initial research, I am avoiding Forest Park as some areas I drove into were filled with vandalised properties.

Regards

[ATL_II_DMV]

I own a property in Fairburn, but right by the Union City border.

I'd go for Palmetto or Fairburn if I were you. Very low crime and you'll always have a potential renter if you use the right property management company.

Check out ehms property management if you do decide to buy in ATL and rent out the place

[peachstatehomegal]

At the moment, I'm trying to find more people looking to rent out their homes in Gwinnett County (in a few particular school districts). There's been an incredibly high demand for them this summer.

Good luck!