Investing in real estate can be a great adventure and can yield awesome returns. However, it can also be a disaster if it is not approached properly. Investing in real estate out of state can seem very attractive in areas such as Atlanta, where property values are still lower than most major cities in the United States. However, it can be hard to manage a property when you are not in the vicinity.
The most important thing is to actually visit the property prior to purchasing for several reasons. One, pictures don't always tell a full story. Two, you want to evaluate the condition of the property for yourself; and three, you want to see the area where the property is located. Atlanta is a great city to own rental property, however, you need to know what to expect in terms of rental prices, tenants, neighborhoods, property taxes, homeowner association rules, city and county restrictions and much more.
You will also need to research the laws and regulations for owning investment property in that particular neighborhood, city, and county. Many neighborhoods in Atlanta and the surrounding areas have restrictions on rentals. Rental limitations or rent restrictions. What you don't want to do is purchase an investment property to be used as a rental in a neighborhood that does not allow rentals. As you are doing your research, also look into the professionals that you will need to make the process and management of your investment go smoothly. You will need to have a property manager, a handyman, and a real estate agent to get started. Read our article on "Managing Your Rental Property From Afar" for more in-depth information.
When looking for a property management company, you may hit the jackpot right away, but thorough screening and interviewing will bring better results. Some companies will provide a handyman through their company, handle all tenant screenings and rental advertisements, and take care of all the rent collections. If you can find a reliable and dependable property management company, it will not matter that you live out of state. Read our article on "How To Choose The Right Property Manager".
Now that you have researched and found out about all of the tough questions, consider all of the benefits. By purchasing out of state, you will have a property in another area that you can visit and write-off as a tax break. Consider this when purchasing, you will want to purchase in an area that you would like to visit frequently. If you pick a very popular vacation spot, you can consider renting weekly for much more income than a standard renter can. The returns on out of state property are definitely worth the risk if you pick a great area. You can also pick an area that you may choose to retire in and have a home ready for your future. If you have a family member that will be attending college out of state, consider investing in a property in their college town and that can be a lot cheaper than paying for the dorms and will be an investment for the future.
If you are not living in Georgia, but seeking rental income, consider looking out of state - particularly in the Atlanta Metro area. Metro Study has published a report on the Atlanta area: "The Atlanta employment statistics through December 2014 show that the region has experienced positive job growth through 4Q 2014. Net jobs in Atlanta through December 2014 increased by 67,400 positions, up 2.6% year over year. Atlanta ended the year as the eighth most populous MSA in the country, seventh for job growth and ranked third highest for single family building permits. Foreclosure activity has hit a twelve year low and resale inventory remains low. All key metrics point towards stronger housing growth for 2015"*. Atlanta's Housing Market, compared to other large cities in the country, still has very reasonable prices for housing with average sales price of $169,100 and the median sale price of a SFH (single family home) being at $245,115**.
ALHPodland Rental Homes Property Management can provide you with a wide range of advice and services on your out of state investment property. Regardless of your plans, it is an investment in your future as long as you have the proper rental property company managing it for you and ensuring the property is safe.