Having an idea of where to buy investment property is vital when entering the business. Some locations are not projected to perform admirably during a given year, while others are destined to excel. The Atlanta real estate market fits into the latter category, as it was ranked #11 by the PwC in overall real estate prospects in 2019. As it is expected to be a neutral market according to Zillow (meaning it maintains a balance between a buyer’s market and seller’s market), the Atlanta housing market offers investment opportunities for all. To learn more about why and where to buy Atlanta investment properties, keep reading!
Related: Real Estate Investing for Beginners: How to Choose the Best Location for Your First Rental Property
Atlanta Real Estate Market 2019 Data
Before we talk about where to buy Atlanta investment properties, let’s talk about how they are performing. The best way to assess an Atlanta real estate investment is to use a rental property calculator. Where can you find such a calculator? Right here, with Mashvisor! To learn more about our investment property calculator and how it can help you find the best Atlanta investment properties, click here! For now, take a look at the data of the average Atlanta investment property, provided by Mashvisor:
Pricing
- Median Property Price: $435,221
- Price per Square Foot: $235
- Price-to-Rent Ratio: 18
Traditional Investing
- Rental Income: $1,993
- Cap Rate / Cash on Cash Return: 1.9%
Airbnb Investing
- Rental Income: $2,658
- Cap Rate / Cash on Cash Return: 3.1%
- Occupancy Rate: 45.7%
Why You Should Purchase Atlanta Investment Properties
Why should you consider investing in Atlanta real estate? As seen from Mashvisor’s data, there are plenty of reasons why. The four main reasons why investors should purchase Atlanta investment properties are their profitability, relative affordability, and traditional and Airbnb investing success.
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Profitability
All real estate investors want a bang for their buck from investment properties. For ATL real estate investors, this is practically a guarantee with Atlanta investment properties. As seen from Mashvisor’s data, the average traditional and Airbnb rental income for an Atlanta real estate investment are $1,993 and $2,658, respectively. Return on investment for both strategies is also impressive, further incentivizing the purchase of Atlanta investment properties.
The Atlanta housing market also benefits from its high appreciation rates. During the last 10 years, the Atlanta real estate market appreciated by over 33.35%, according to NeighborhoodScout. This places the market in the top 20 percent in the nation for appreciation. During the last year, Atlanta had an appreciation rate of 6.87%, which is higher than the rate of 70% of other cities and towns in Georgia and 74% of cities and towns in the nation.
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Relative Affordability
Atlanta houses for sale are not the most inexpensive in the nation. According to Mashvisor’s data, the median price for Atlanta investment properties is $435,221, which is higher than the national median of $335,000. However, in the best neighborhoods in Atlanta, median property prices range from $55,000 to around $120,000. And you can find Atlanta investment properties for sale that are even lower than these median prices using Mashvisor’s tools like the heatmap analysis and property finder tool!
Learn More: Expert’s Guide on Finding Income Properties Using a Heatmap
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Traditional Real Estate Investments
Traditional rental properties are an excellent investment in the Atlanta real estate market. This is due to many factors, starting with its economy. Atlanta has the 10th largest economy in the US and the 18th largest in the world. It ranks 4th in the number of Fortune 500 companies and has 7 Fortune 100 companies including The Coca-Coca Company, Home Depot, and Delta Airlines. Its job market has grown by 2.9% over the last year, which was more than the 1.6% national average. Future job growth in the city is expected to be 46.8%, massively trumping the national average of 33.5%. Atlanta is also the 10th fastest growing city in the US. This population growth increases the demand for traditional Atlanta rental properties, as over 57 percent of residents reside in a rental property.
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Airbnb Real Estate Investments
It’s clear that Atlanta is one of the best places to invest in real estate for traditional and Airbnb investing. Atlanta is consistently in the top 10 most visited cities in the US, with an annual average of 50 million visitors. Atlanta is visited by millions for its outdoor attractions, history, and the world’s largest indoor aquarium. Airbnb Atlanta saw great success when it hosted Superbowl 2019, drawing over 9,000 Airbnb visitors during the weekend.
Related: Airbnb Atlanta Real Estate Is Breaking Records! Time to Invest?
Is Airbnb Legal in Atlanta?
But before you consider investing in Airbnb Atlanta, is it even legal? Thankfully, Airbnb is legal for Atlanta investment properties. The most important Airbnb regulations in Atlanta for non-owner occupied rentals include a hotel license, a business license, and occupancy taxes, all of which you can learn more about on Airbnb’s Help Page. As it pertains to occupancy taxes, Airbnb Atlanta hosts are required to pay a City Occupancy Tax of 8% and a Fulton County Occupancy Tax of 7%.
Best Neighborhoods in Atlanta: Traditional Investing
So, where are the best places to invest in Atlanta investment properties? According to Mashvisor, the best neighborhoods for traditional investing are The Villages at Carver, English Park, and Amal Heights.
The Villages at Carver
Pricing
- Median Property Price: $55,000
- Price per Square Foot: $54
- Price to Rent Ratio: 3
Traditional Investing
- Rental Income: $1,338
- Cap Rate/Cash on Cash Return: 14.3%
English Park
Pricing
- Median Property Price: $119,900
- Price per Square Foot: $73
- Price to Rent Ratio: 7
Traditional Investing
- Rental Income: $1,549
- Cap Rate/Cash on Cash Return: 7.7%
Amal Heights
Pricing
- Median Property Price: $92,900
- Price per Square Foot: $74
- Price to Rent Ratio: 6
Traditional Investing
- Rental Income: $1,260
- Cap Rate/Cash on Cash Return: 7.6%
Best Neighborhoods in Atlanta: Airbnb Investing
What about for Airbnb investing? According to Mashvisor, the best neighborhoods for Airbnb investing are Mellwood, The Villages at Carver, and Amal Heights.
Mellwood
Pricing
- Median Property Price: $117,950
- Price per Square Foot: $104
- Price to Rent Ratio: 11
Airbnb Investing
- Airbnb Rental Income: $2,032
- Cap Rate/Cash on Cash Return: 11.4%
- Airbnb Occupancy Rate: 54.9%
The Villages at Carver
Pricing
- Median Property Price: $55,000
- Price per Square Foot: $54
- Price to Rent Ratio: 3
Airbnb Investing
- Airbnb Rental Income: $1,381
- Cap Rate/Cash on Cash Return: 10.3%
- Airbnb Occupancy Rate: 44.2%
Amal Heights
Pricing
- Median Property Price: $92,900
- Price per Square Foot: $74
- Price to Rent Ratio: 6
Airbnb Investing
- Airbnb Rental Income: $1,771
- Cap Rate/Cash on Cash Return: 9.5%
- Airbnb Occupancy Rate: 45.5%
All in all, Atlanta investment properties are some of the best in 2019. Want to start searching for Atlanta houses for sale? Then click here to start your 14-day trial with Mashvisor!
