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Old 03-02-2015, 11:06 AM
 
Location: Savannah, GA
32 posts, read 29,647 times
Reputation: 17

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Hey guys...I'm a little familiar with Atlanta but not a whole, whole lot. Currently living in Savannah...Myself, wife, and two kids (3 yr old boy and 15 month old girl).

We are looking to move up there at the end of the year. My family is from Nashville...wife's from just across GA-line in Alabama. I will have the opportunity to work from home so we are open to anywhere...mainly looking ITP.

I'd like to have a few rental properties (eventually) and Atlanta looks like a good market for it. The first house I want to buy, we'll live in for at least a year and then (probably) move OTP for schools and space...turning said house into a rental.

Where are some places that we could find a good house for a good price in a safe area that would get a good rental return down the road (and also increase in value)? Looking for a 3BR house under 150K...closer to 100K to 120K (if possible).

I've heard the west-side is improving with the new Beltline...East Point, Hapeville, Adair Park are places I've heard will improve/increase in value over the next few years. My uncle lives in Lake Claire so I'm familiar with Kirkwood, Edgewood, Decatur...some areas near there are still affordable. It looks like Decatur inside the perimeter is okay, but I hear OTP isn't that great...

I'm trying to think of what else I should ask or what further info I should provide...

Thanks in advance!
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Old 03-02-2015, 12:13 PM
 
2,074 posts, read 2,003,839 times
Reputation: 1430
Pretty much anything in the 150's and under in Kirkwood/Edgewood/East Lake will be a tear-down.

My 2 cents:
The transactional costs and stress associated with buying/selling a house and moving are high enough that I wouldn't want to go through it again a year or two after moving to town. Particularly when you start talking about getting approved for a new, larger mortgage while having zero rental history on your investment property (lenders don't love that). Also consider that since you are paying mainly interest for the first several years of the mortgage and paying down principal very slowly, it's not vastly better than "throwing away" money on rent for a year or two. I'd rent near where I plan to settle down, buy something I plan to stay in longer term, and then think about adding an investment house to the mix once I'm more local-ish and can better vet properties and areas I am interested in.
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Old 03-02-2015, 12:51 PM
 
Location: Savannah, GA
32 posts, read 29,647 times
Reputation: 17
Thanks Red - I appreciate your input. I just know of several investors who have gone the route of purchasing a home with an FHA mortgage to get a low interest rate and low down payment. Once you have lived in the house (and for us, once we have gotten acquainted with the area) for a year, you are welcome to move out and it can become a rental with no needed adjustments to the mortgage.

It's a slow way of building wealth/equity.

This would also be a way for us to start inward (ITP) and look outward to figure out where we want to move/raise our family. Maybe we should just rent in Lawrenceville/Snellville/Loganville and figure out if we love it/hate it...
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Old 03-02-2015, 01:13 PM
 
2,074 posts, read 2,003,839 times
Reputation: 1430
Quote:
Originally Posted by BoomSoonBri View Post
Thanks Red - I appreciate your input. I just know of several investors who have gone the route of purchasing a home with an FHA mortgage to get a low interest rate and low down payment. Once you have lived in the house (and for us, once we have gotten acquainted with the area) for a year, you are welcome to move out and it can become a rental with no needed adjustments to the mortgage.

It's a slow way of building wealth/equity.

This would also be a way for us to start inward (ITP) and look outward to figure out where we want to move/raise our family. Maybe we should just rent in Lawrenceville/Snellville/Loganville and figure out if we love it/hate it...
The issue is that it can be difficult to find a lender for your next mortgage when you are already obligated to the one on the investment property. Unless your income says you can carry both payments, or you have 6 months or more of continuous rental history on the investment home, lenders may be wary.

I think a lot of "investors" get away with what you are describing because they are willing to tolerate some risk and the pleasantries associated with "improving" areas while living there for a couple years. Since you've already got a family, you may or may not fit into that category. Tolerance for that stuff varies greatly.
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Old 03-02-2015, 11:11 PM
 
Location: Savannah, GA
32 posts, read 29,647 times
Reputation: 17
I think I can afford it this one time. Where would you recommend?
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Old 03-03-2015, 12:47 AM
 
18 posts, read 11,021 times
Reputation: 17
Personally I like to keep investment properties separate from my primary residence. Once you live in a place for 2 years as your primary residence you get up to $250K (single filer; $500K married) tax free profit. If you muddy the water by renting it out you lose that tax benefit. What you do will depend greatly on the situation but if you fall into a home in an up-and-coming area and the value doubles, it may be a smarter play to cash out for a new opportunity.
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Old 03-03-2015, 08:08 AM
 
Location: City of Atlanta
1,405 posts, read 1,158,590 times
Reputation: 1359
Quote:
Originally Posted by BoomSoonBri View Post
I think I can afford it this one time. Where would you recommend?
For investment purposes, look to areas that are still cheap but on the Beltline. Your best bet for a 5 year turn around is where the Beltline is currently being built - West End and Adair Park specifically I think are the best areas. Those areas, while cheap, are also relatively safe compared to other cheap areas on that side of town, so I would feel comfortable with my family there. Other areas that you might want to consider are the south end of Grant Park, Peoplestown, and the northern part of Boulevard Heights. The Beltline is expected to come through these areas in the next 5-7 years. Peoplestown and Boulevard Heights will be the cheaper options, but more expensive than West End and Adair Park probably. Grant Park still has some good deals around, but they tend to be fixer uppers. The neighborhood has mostly transitioned, so I don't think you would call it an investment area anymore, although the property values are still quickly rising. Grant Park is an area that is still affordable to buy in, but also an area where the schools are quickly improving and you wouldn't have to move to a suburban location the second your kids hit school age. The other listed neighborhoods are still having difficulties in the schools, so that is reflected in the values of the homes.
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