Market Of The Month – Atlanta, Ga

Are you looking for a target market ideal for real estate investing somewhere warm and with a rich culture? Check out the thriving Atlanta metropolitan area. This major city offers serious upsides for the real estate investor hunting for a market with high demand, growth potential, and rehab properties. Why Atlanta?

Population is Booming

The U.S. Census Bureau reported Atlanta’s population grew by 17% from 2010 to 2018. For comparison, the U.S.’s total population only grew six percent in that same timeframe. Atlanta was also the fourth-fastest growing city in 2018, adding over 75,000 more residents.

With all that growth, Atlanta is forecasted to overtake Philadelphia as the eighth-most populous metropolitan area by 2022. For real estate investors interested in long-term investment potential, the local population is estimated to reach eight million by 2040. Demand for housing is likely to be sustained, ideal for the landlord property investor looking to scale their real estate rental portfolio.

Employment Opportunities

Why are people coming to Atlanta? Its job market is a vital factor. Atlanta is the hub of 16 Fortune 500 companies and headquarters for 25 Fortune 1000 companies. Delta Air Lines, Home Depot, and Coca-Cola call Atlanta home.

For perspective, the U.S. Bureau of Economic Analysis found Atlanta’s 2018 GDP was $385 billion. It was in the top 10 for U.S. economies and top 20 worldwide.

Unlike some other cities, Atlanta isn’t dependent on one industry for its economic strength. The city has attracted the film industry with significant incentives, it has a strong healthcare sector, and over a dozen higher education schools, including Georgia State University. Forbes listed Atlanta in 2017 as one of the “5 U.S. Cities Poised To Become Tomorrow’s Tech Meccas.”

Real Estate is a Deal

Unlike the West Coast and Northeast population centers, where workers are being priced out of real estate, Atlanta housing is still relatively affordable given its size. You can find homes of decent quality at prices that make investment sense and the return on investment for fix and flip projects typically exceed the 15% threshold investors should be aiming for when reviewing a deal.

As of September 2020, Atlanta’s median list price was $311,000, an 15.2 percent year-over-year growth. The market was also balanced, with buyer demand and supply near equal. Overall, prices have risen for the past year, and forecasts suggest the market’s appreciation will continue growing.

Atlanta is ripe with opportunities for fix and flip properties or to buy, hold, and make the most of appreciation gains. Mashvisor ranked Atlanta no. 8 in its 2020 Best Places to Invest in Real Estate.

Attractive Rental Potential

Atlanta homes may be more affordable, but buying a new home is still out of reach for many young professionals and millennials. Nearly a quarter of Atlanta’s residents fall into the millennial demographic—between 28 and 38 years old.

The city already has a thriving renter population. Neighborhood Scout reports 60% of Atlanta residents live in a rental property. Real estate investors can take advantage of the high demand for long-term rentals in the city using rental financing to score ideal properties. Exceeding the 1.25x DSCR landlords aim for is easily achievable in this booming market.

Invest in Atlanta Real Estate

Don’t let a prime real estate investment opportunity pass you by. A hard money loan can help you secure the deal by offering quick closings and flexible terms. Learn more about Atlanta investment properties we have for sale and the programs we offer: such as rental financing, rehab loans, private money loans, joint venturing, and more.

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