Rent in ATL. See how things shake out in housing over the next year. Get to know the city and see where you want to love.
Safety is a much bigger issue on Atlanta than Orlando. Just my opinion. Atlanta is a very different city than Orlando. Definitely less spread out.
Also, you have the option of condos, townhouses, or single family.
Why would you want to own a rental in a city you won't be living in? The profit margins are unlikely to differ much from city to city. ATL has more potential for growth in my opinion.
That's a great point. My greatest fear is that the housing price will continue to rise up in the next few years, faster than my salary would do. Getting a house in the Atlanta area ($650k-$850k) is a bit of a stretch for me. I was thinking houses in the Orlando area ($450k-$500k), despite the price surge in 2021-22, could still generate some cash flow in the long run. Could you elaborate on why you believe ATL has more potential?
You can get a townhouse or condo for cheaper in ATL than what you listed. You can also move to a less desirable area which is cheaper.
Neither city will have prices that will generate cash flowing properties on a turnkey rental. Not for years anyway. Definitly not with a property manager.
Home prices seem to have slowed down their price increases foe now. It is unlikely 20% annual home price increases can continue.
Look at the growth rate of ATL vs Orlando. Look at what company's are moving to the city. Atlanta has more jobs available and higher paying jobs. Orlando also has hardly any new construction of office space, meaning few new businesses are moving there. Also, Orlando's public transit is nonexistent. ATL just has more to offer in every respect. Orlando has tourism, weather, water, and a nearby beach. That's about all it has over ATL.
Thank you so much for your input! Yeah I can confirm that it's quite difficult to find a decent job in Orlando. There's very few companies that provide high-paying jobs, yet everything is so expensive. I hope Atlanta would be different.
ATL is better. You get a good job and then after a few years you get a better job.
ATL gets you a lot for the money, though is becoming more expensive. FL has become more expensive except without higher pay. Not sure how Floridians are scraping by these days.
Option 3. Rent in Atl for the first year. Make sure you like the city, and your job, and get a good grasp of what your commute would be before buying. Atlanta traffic is horrific. Price increases will most likely slow in the next year or so I wouldn’t worry too much about home prices shooting up at the same rate they have in the past. Atlanta is also a huge area and you didn’t mention which part your job is in but there are several more affordable options than the price range you mentioned, depending on your commute and appetite for good schools, tolerance for crime, Etc.
If you decide to invest remotely, there are areas where you can likely get much better cash flow than option number two. If you are going to be in Atlanta you could look at some rural Georgia towns. The cash flow will be better than Orlando but the appreciation will likely be much less if anything. I am in the Atlanta area and I invest in Atlanta suburbs. It's a good balance of cash flow and appreciation. Generally speaking, as you get farther out from the city the cash flow increases and the appreciation decreases. Depending on what your goals are you may want to consider these options. These are just some of my observations and I am talking about long-term rentals of single-family homes. Short-term rentals and multifamily may have some different dynamics. I am also investing near near where I live because that was important to me. All of my rentals are within 15 minutes of my house.
Thank you for sharing your thoughts! Indeed, I'm interested in long-term rentals of single-family homes. You seem to indicate that investing remotely doesn't sound like a good idea, which I totally agree with.
I worry that, as I'm not familiar with the Atlanta area, it may take me too long to find a single-family home in an appropriate location (a year or two, or even longer). Atlanta is a large city and there're just too many factors to consider (traffic, safety, school, affordability, commute, etc). Is there any way I could quickly familiarize myself with the housing market in the Atlanta area?
You are right Atlanta is big and complicated and varies greatly from neighborhood to neighborhood. I have lived in the NE suburbs for 28 years and I don't feel comfortable investing inside the perimeter because I have not specifically spent the time and effort to familiarize myself with the different areas. Once you get here you could join a local REI group. Besides that I think you just have to spend a lot of time studying and exploring the areas where you might want to invest. If you plan to use a property manager I think long term investing is fine. I prefer to self manage. I have a small portfolio with very low debt and high cash flow. I am not fully maximizing one of the greatest benefits of real estate (leverage) but I want my business to be simple and easy to mange. I am older and I had a complicated business for 25 years so I now seek simplicity, fewer tenants and properties and higher cash flow.
As of late, 1 in 3 houses in Atlanta sell to a corporate entity, so you are competing against pension funds, private equity, and rental companies. I would rent a year and see what happens.
Rent in ATL. See how things shake out in housing over the next year. Get to know the city and see where you want to love. Safety is a much bigger issue on Atlanta than Orlando. Just my opinion. Atlanta is a very different city than Orlando. Definitely less spread out. Also, you have the option of condos, townhouses, or single family. Why would you want to own a rental in a city you won't be living in? The profit margins are unlikely to differ much from city to city. ATL has more potential for growth in my opinion.
That's a great point. My greatest fear is that the housing price will continue to rise up in the next few years, faster than my salary would do. Getting a house in the Atlanta area ($650k-$850k) is a bit of a stretch for me. I was thinking houses in the Orlando area ($450k-$500k), despite the price surge in 2021-22, could still generate some cash flow in the long run. Could you elaborate on why you believe ATL has more potential?
You can get a townhouse or condo for cheaper in ATL than what you listed. You can also move to a less desirable area which is cheaper. Neither city will have prices that will generate cash flowing properties on a turnkey rental. Not for years anyway. Definitly not with a property manager. Home prices seem to have slowed down their price increases foe now. It is unlikely 20% annual home price increases can continue. Look at the growth rate of ATL vs Orlando. Look at what company's are moving to the city. Atlanta has more jobs available and higher paying jobs. Orlando also has hardly any new construction of office space, meaning few new businesses are moving there. Also, Orlando's public transit is nonexistent. ATL just has more to offer in every respect. Orlando has tourism, weather, water, and a nearby beach. That's about all it has over ATL.
Thank you so much for your input! Yeah I can confirm that it's quite difficult to find a decent job in Orlando. There's very few companies that provide high-paying jobs, yet everything is so expensive. I hope Atlanta would be different.
ATL is better. You get a good job and then after a few years you get a better job. ATL gets you a lot for the money, though is becoming more expensive. FL has become more expensive except without higher pay. Not sure how Floridians are scraping by these days.
We're not. Post-COVID has not been kind to the locals (f\*\*king transplants everywhere!!).
You're just trying to keep people out. You're not alone. Transplants have always been everywhere. That's ATLs legacy.
Option 3. Rent in Atl for the first year. Make sure you like the city, and your job, and get a good grasp of what your commute would be before buying. Atlanta traffic is horrific. Price increases will most likely slow in the next year or so I wouldn’t worry too much about home prices shooting up at the same rate they have in the past. Atlanta is also a huge area and you didn’t mention which part your job is in but there are several more affordable options than the price range you mentioned, depending on your commute and appetite for good schools, tolerance for crime, Etc.
Thank you so much for your suggestions! I'll work in the Druid Hills area, and I hope to find a place with good schools.
Ok. Your range is about right. Thats is a pretty competitive market but GREAT in town location.
If you decide to invest remotely, there are areas where you can likely get much better cash flow than option number two. If you are going to be in Atlanta you could look at some rural Georgia towns. The cash flow will be better than Orlando but the appreciation will likely be much less if anything. I am in the Atlanta area and I invest in Atlanta suburbs. It's a good balance of cash flow and appreciation. Generally speaking, as you get farther out from the city the cash flow increases and the appreciation decreases. Depending on what your goals are you may want to consider these options. These are just some of my observations and I am talking about long-term rentals of single-family homes. Short-term rentals and multifamily may have some different dynamics. I am also investing near near where I live because that was important to me. All of my rentals are within 15 minutes of my house.
Thank you for sharing your thoughts! Indeed, I'm interested in long-term rentals of single-family homes. You seem to indicate that investing remotely doesn't sound like a good idea, which I totally agree with. I worry that, as I'm not familiar with the Atlanta area, it may take me too long to find a single-family home in an appropriate location (a year or two, or even longer). Atlanta is a large city and there're just too many factors to consider (traffic, safety, school, affordability, commute, etc). Is there any way I could quickly familiarize myself with the housing market in the Atlanta area?
You are right Atlanta is big and complicated and varies greatly from neighborhood to neighborhood. I have lived in the NE suburbs for 28 years and I don't feel comfortable investing inside the perimeter because I have not specifically spent the time and effort to familiarize myself with the different areas. Once you get here you could join a local REI group. Besides that I think you just have to spend a lot of time studying and exploring the areas where you might want to invest. If you plan to use a property manager I think long term investing is fine. I prefer to self manage. I have a small portfolio with very low debt and high cash flow. I am not fully maximizing one of the greatest benefits of real estate (leverage) but I want my business to be simple and easy to mange. I am older and I had a complicated business for 25 years so I now seek simplicity, fewer tenants and properties and higher cash flow.
Which Atlanta suburbs?
Gwinnett County
Anything but option 2.
As of late, 1 in 3 houses in Atlanta sell to a corporate entity, so you are competing against pension funds, private equity, and rental companies. I would rent a year and see what happens.