Atlanta Rental Properties: What New Investors Should Avoid
Atlanta Rental Properties: What New Investors Should Avoid
Atlanta rental properties are very hot right now, and people are transitioning from their regular nine to five jobs to start a career in commercial real estate investments. For those just dipping their toes into the water, your first investment property can be very lucrative, if you know how to avoid some common pitfalls.
Don’t Rule Out Single Family Rentals in Altanta
Millennials are a frequently overlooked demographic in the commercial real estate market. Millennials are educated, upwardly mobile, and understand the value of renting space. In fact, more millennials are choosing to rent single family homes in Atlanta right now. The reason for this is more people in that demographic are taking contract jobs at the tech campuses in the greater Atlanta area, so it makes more sense to rent for the term of the contract, and then move to wherever the next contract takes them. Just a few years ago, Atlanta rental properties were almost exclusively apartments, but that trend is changing.
Get An Inspection Before Purchasing Local Atlanta Rental Properties
Purchasing an investment property sight unseen is a very risky move. Many Atlanta rental properties require some form of renovation, even if it is a fresh coat of paint. Getting an inspection will allow investors to get a better idea of the budget they need for renovations, and if anything is not up to code. Remember that when budgeting for renovations you should leave yourself a buffer in case a project ends up being bigger than expected. Replacing floors can uncover leaky plumbing or bad wiring, and budgeting to the penny may not allow for the necessary repairs.
Speaking Of Budgeting And Renovations
Don’t skimp on flooring, counter tops, and fixtures. You certainly do not need to purchase Italian marble counters, crystal doorknobs, and reclaimed cypress floorboards, but try to avoid fiberglass and linoleum. Renovations are not just about where you can cut corners to save money. Making a rental property profitable is also about making it appealing to tenants. Extra care put into renovations and amenities can justify higher rent.
Choosing The Right Financing
Purchasing Atlanta rental properties are smart investments, but every acquisition requires the right financing. In many cases, a combination of conventional and bridge loans not only covers the cost of acquisition, but also provides capital for renovations and other immediate expenses. For owner occupied rentals in Atlanta, SBA loans are sometimes a better fit. At Corporate Funding, we specialize in a wide range of commercial real estate financing programs designed specifically for Atlanta, GA property markets. Contact our offices today to get started.
