It’s no secret that since the housing bubble exploded and the shockwaves of short sales and foreclosures, millions of families have lost their homes. According to Forbes magazine, nearly 4 million families were forced into the rental market.  Now everyone wants to know where and how to invest in real estate after the crash.

In many cities across the United States, the law of supply and demand has taken over.

The results are in.

Rents are rising.

The National Association of Realtors projects a 4% average increase in national rents over the next few years.

That’s were rental property buyers like New York hedge funds, Canadian families, and Californians fit in.

With excel spreadsheets and calls to “my friend has a real estate license in ‘Some City, USA’”; they search houses for sale in America and beyond, looking for rental property that will beat the averages.

If you want to know how to invest in real estate then begin with the resources below, you’ll avoid hours of headache and heartburn. Come to think of it, you could use the information as a starting point to finding Atlanta real estate investments.

Here’s a few interesting statistics: According to the Metro-Atlanta Chamber of Commerce from 2011 to 2020, population growth is expected at 90,000 and job growth is projected at 60,000 per year.  There has been an increase in foreign direct investment in Georgia led by China, Korea and Turkey.

But look you must always be diligent when investing outside of your hometown. Here are…

3 Key Areas to Research the Atlanta Real Estate Investment Market

1. State & Local Laws – Discover if the city you’re researching has Landlord-Friendly laws. Go directly to Georgia Department of Community Affairs and read for yourself… http://www.dca.state.ga.us/housing/housingdevelopment/programs/LandlordTenantHandbook.asp
2. Rent vs Ownership Trends  - Find the average rent within a 3 to 5 mile radius and compare it to acquisition cost.  Do the same rent trends research in your hometown.  “I have a rental property in Atlanta that I bought for $74,000 and rents for $1025/month, stated Ali Boone, a California investor in a recent article, “I looked at a comparable foreclosure in Orange County, CA that I would have had to pay $270,000 for and it rented for $1200. Study the Housing Vacancies and Homeownership charts from the United States Chamber of Commerce at http://www.census.gov/housing/hvs/
3. Property Management Companies –  Always interview 3 companies and check if they belong to the National Association of Rental Property Managers http://www.narpm.org/search/search-chapters.htm

Here’s what to do right now to make sure to take advantage of buying rental property in other states… so you can start building a portfolio of cash flow properties.

Ask your significant other, “Do you feel comfortable in buying property that is not in our hometown?”

If he says, “No.”

Ask him, “What concerns does he have?” Write those down. Come back to this article and put those concerns in the comment section below. The community of Activerain members will follow up with responses.

If he says, “Yes. I’m comfortable buying rental property wherever we can make money.”

Then check out my resources -–> How to Buy Rental Property in Other Cities to Get Better Cash Flow

Moving Forward,

Kendall Matthews, Investment Real Estate Corner

Keller Williams Realty Integrity First

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picture credit: afscatlanta