Steve Rozenberg is the VP of Investor Education with Mynd Property Management, and he asked Jessy Porter, the Portfolio Manager of Atlanta Operations with Mynd to talk about some of the common issues and challenges that face Atlanta real estate investors and landlords.
Today’s discussion revolves around investing in Atlanta, and why it might make sense to consider this market if you’re a real estate investor looking to add properties to your existing portfolio.
Atlanta is a hot market, and most investors know that it’s getting a lot of attention. Buyers from outside Atlanta and even from outside of the U.S. have noticed that it’s a great place to invest. But, Jessy is the local expert – she has lived and worked in Atlanta for the last 18 years, and she cares about her community. So, we asked her for the five best reasons that a real estate investor should consider buying rental property in Atlanta.
Investing in Atlanta: Economic Growth
The fact that Atlanta is growing and also sustaining its growth is incredible. With every year that passes, the city gets even bigger, better, and more appealing to people. Part of this has to do with the opportunities in the city. It’s always on the move, and the growth percentage has consistently come in at levels that are almost unheard of. This has been going on for a few years now, and it shows no signs of letting up, making Atlanta’s growth pretty reliable.
The city has everything it needs to continue doing well. There’s a lot of industry, there’s a lot of culture. Atlanta has diversity and education and professional sports and theater and a major airport.
Atlanta’s Economy: Major Employers
Part of the reason that Atlanta continues to grow so fast is that it manages to attract and keep many global companies within the city. These are major corporate players such as Coca Cola and Delta and AT&T. These companies bring lots of jobs to the market, and massive amounts of people are coming here to work. Those people all need a place to live.
The strength of Atlanta’s economy has created a strong rental market. The city’s demographics cover a lot of ground, but the largest population of new residents is between 26 and 36 years old. These residents are educated and they have good jobs and they’re not looking to buy property right now. Instead, they want to enjoy the low-maintenance lifestyle and flexibility that comes with renting. They also want the option to move around a bit more. They’re in Atlanta because the jobs are in Atlanta.
Another thing Atlanta has is a large entertainment market. There are always movie sets and television shows being filmed here. People love that. It drives additional growth, and it brings in more residents who need housing.
Geography: Atlanta’s Large Landscape
Another excellent reason to invest in Atlanta is its landscape. The ground that we have covers a large area and many diverse and unique neighborhoods. There’s a lot of beautiful green space and people can choose to live near trees and nature or downtown in the middle of a lot of action. We have high rises and the city beltline. We have suburbs and neighborhoods that are both new and established. In Atlanta, investors can find single-family homes as well as multi-family housing. People love living here because they can rent a beautiful space right down the street from where they work and within walking distance of great shopping, restaurants, and nightlife. These things alone draw a lot of people to Atlanta.
Inbound Influx is International
The economy isn’t the only thing growing in Atlanta – the population is also surging. Plenty of people are moving to Atlanta, and this inbound influx is always a great indicator when you’re investing. When you’re choosing a market, you want to see outward people moving into a city and not just organic within the city.
Atlanta attracts new residents from all over the world. A lot of that population growth comes from the education system in Atlanta. Some of the best universities are in the city, and they offer great degree programs as well as post-graduate opportunities. The technology is also pretty impressive. Emory University, for example, is doing a great job of attracting new people to Atlanta because of their tech programs. It brings people from all over the place.
Positive Rent vs. Purchase Price Ratio
A lot of investment property in Atlanta can be purchased at an affordable price. There’s also tremendous potential for value. Five years ago, we didn’t have a lot of owners who were willing to do upgrades and updates to add value to their rental property. That’s different, now. In the last few years, rehabs have been happening consistently, and they’ve been pretty exciting.
Investors are moving forward. They’re buying properties for pennies, adding a little money to the investments, and earning a lot more in rent. This is a trend that’s happening throughout the Atlanta market.
Atlanta is definitely a market to consider if you’re an investor looking to buy property and earn some great returns. A lot of the investors buying in Atlanta don’t live here. That’s an excellent reason to work with a local Atlanta property manager. Make sure you’re getting good advice from someone who spends every day paying attention to the trends and real estate industry in Atlanta.
If you’d like to learn more about Atlanta property management, please contact us at Mynd Property Management. We can help you identify opportunities and manage your rental property.
We also have other opportunities to connect with us and learn more about investing in Atlanta. You can also visit our Facebook group of investors, which is called Master Mynd. It’s a real estate investors’ club, where you can exchange ideas with other owners. Check out our weekly podcast as well, called The Myndful Investor. We invite leaders in real estate and property management to talk about their success and, more importantly, their failures. There’s a lot to learn from this relatable content.