Like many other people, you want to make more money, but the volatile stock market has left you looking for a better option. Real estate may be your key to a wealthier future. Keep your eyes on rental properties in Georgia in particular.
Why Georgia? Because the real estate investing market is hot there right now in 2018, especially in Atlanta and surrounding areas.
Of course, real estate investing works only if you go about it the right way. That’s why we’ve compiled a guide for generating substantial income with rental properties in Georgia.
Let’s dig in!
Location, Location, Location
This is the most important consideration when you’re looking for a place to own rental properties in Georgia. After all, your choice of location can be the difference between having a successful real estate investing career and losing a lot of money.
Research shows that in 2016, DeKalb, Fulton and Clayton Counties near Atlanta had high proportions of renters. These types of counties are the best locations for rental property investments.
On the flip side, counties such as Forsyth County don’t have as many renters, so they might not be the most ideal candidates for you. Meanwhile, Gwinnett County has featured higher rents during the past couple of years. So, this county may be good for investing in an apartment property or in a single-family home that can be converted into several rental units.
No matter which area of Georgia you choose to purchase rental properties, be sure to stick with attractive neighborhoods. In other words, choose rental properties in Georgia that individuals or families actually wouldn’t mind living in.
Sure, you may be tempted to purchase a less expensive property in a neglected, run-down neighborhood. But you’ll pay more on the other end, as you’ll struggle to find and keep decent tenants.
A good rule of thumb is to purchase the most undesirable house in a neighborhood, as this will give you the greatest appreciation amount once you renovate it.
In addition, pick homes that are close to local amenities, such as supermarkets and shopping malls, as well as transportation and good schools. This move will pay dividends in the long run.
Do Some Number Crunching
As you start your property search, don’t forget to figure out how much you can spend on an investment property.
A qualified lender can quickly tell you how much it will give you for a property you have your eye on.
But financing the purchase of an investment home is only half the financial battle. You’ll also need to decide if you plan to manage your new property on your own or hire a property management company to take care of this job for you.
Being your own property manager will save you money but cost you a lot of time. You have to determine for yourself which resource is more valuable to you when making a decision about property management.
Figure Out Your Target Renter
Choosing the right location and figuring out your budget are helpful only if you can find the right renter. After all, your tenant will be the one building up your bottom line and helping you to attain greater wealth long term.
Perhaps college students would be your bread and butter in a certain Georgia location — namely a college town. Students generally search for properties that are comfortable, clean and not too high maintenance. And if they’re furnished, that’s often a major plus.
Meanwhile, families typically look for rental homes that are not furnished and that are neutrally decorated. This will allow them to make their new properties “their own.”
If you market your property with the proper tenant in mind, you increase your chances of acquiring a happy tenant who is willing to stick with you for the long haul.
Don Your Business Cap
A tip-top location? Check.
A buttoned-down budget? Check.
And the best tenant? Check.
Now, you just need to locate a home that will help you to meet your goals.
Be sure to look at a prospective rental home from a business perspective rather than making decisions based on your feelings. Numbers don’t lie, but your feelings may deceive you every time.
Enlist the help of a Georgia real estate agent to run sales comps to see what similar properties are going for in the area. This will help to inform your decision about how much to buy the property for.
Also, check out Craigslist for other rental properties to see what other investors are charging. This will give you an idea of your prospective home’s rental potential.
When it comes time to buy the property, don’t be afraid to negotiate for the best price. And keep in mind that if you can pay with all cash — a benefit you’d have if you go with a hard money lender — you’ll be more appealing to the seller who wants to unload a property quickly.
After all, cash is king.
Expect the Unexpected
Just as investing in the stock market can be dicey, be mindful that the real estate market can also fluctuate a great deal. As a result, you might not know at the outset whether you’ll enjoy a desirable return on your property investment.
For instance, your property may sit vacant longer than you’d like between tenants. And renting is a risky business in and of itself. Sometimes renters don’t meet their obligations and thus end up paying late or not paying at all.
Given the above, having an emergency fund to cover your expenses for two to three months is always a good idea.
How We Can Help with Rental Properties in Georgia
We offer top-notch hard money lending services to those interested in purchasing homes or even day cares and retail buildings for investment purposes.
With our loans, you don’t have to worry about upfront fees. And pre-payment penalties aren’t an issue, either.y
Get in touch with us to find out more about how we can help you to maximize your real estate investment opportunities in Georgia.