High Dollar Rental Market in suburbs (Atlanta, Marietta: real estate, condos, mortgage)

[mlv289]

I was looking at some local (Marietta, Acworth, Woodstock) rental properties that are high dollar homes. These properties are listed at anywhere from 2200-3200 month for rent. Does anyone have an opinion/fact on these types of rental properties, as far as are they in demand? I think most are probably people who couldn't sell, so are trying to get something since they have moved on already, but with Atlanta being a transient area, I could see executives not wanting to commit to buying sometimes. Anything? Thanks!

[netdragon]

With the difficulty people have getting mortgages lately, I think larger home rental is a growing market. However, it's a gamble because if every struggling homeowner puts their home up for rent there will be too much inventory on the market. You don't know how low others will be willing to go on rent just to get part of their mortgage covered. In my opinion if you are talking about rental you are better off renting out townhomes and condos in large employment zones like around Cumberland. Sure, you won't see the substantial property value increases you do with houses attached to land, but they are great for professionals to rent. If you are looking to buy a place to hold onto as an investment and have someone else cover your mortgage, then you are more likely going to need to lower the rental price to stay competitive and cover part of the mortgage yourself. Acworth and Woodstock have had good relative real estate value growth rates recently, however those trends usually change year-to-year. The hotspot up to the last couple years used to be West Vinings, for instance, but that has stabilized.

[noah]

The numbers generally don't work as well with these homes, meaning its hard to cash flow well. But I am sure you could do well in it if cash flow isn't your top priority (as opposed to appreciation). Just do your research on rents and target market and you'll see if it fits what you are looking for.

[mlv289]

Thanks to all who answered. Actually, the situation we are in would be more of renting out our house out of necesity. We just lost an income stream, and that earner (my wife) is 7 months pregnant. We still have another house that has been on the market for a few months that we could go back to, as it is a much cheaper house. I am trying to figure out which house would have the higher probability of getting rented out, as selling does not seem to be working out to well....

[netdragon]

Well, even if you have to drop the rental price on the bigger one to get it rented out, isn't that still the preferred option? Getting the larger one paid for (even if not completely) and having to pay yourself on the cheaper one? Make sure to read the IRS's documents on converting a property to rental and what that means both for income taxes and also for selling in the future. It'll be mostly good news for you, though you should make sure you are familiar with everything. You may want to visit an accountant as well.