Right now everyone is talking about multifamily (apartment investing) as being hot in the Atlanta Commercial Real Estate

market.

While Atlanta commercial real estate apartments can be a great deal here are 5 tips to help you sort the good ones from the bad.

1. Location,location,location !       Where the property is located and how many competing properties there are in the area will affect how well the property rents and how often you have to turn over and re-lease to new tenants. Every time you have to lease again to a new tenant you have to recondition the property for rent which costs money and you also incur vacancy loss and cash flow reduction. This will also make it harder for a buyer to get financing when wanting to buy your property when you want to sell the apartments down the road. Lenders like to see a stable tenant base for loan purposes.

2. When looking at purchasing what is the age of the structure and mechanicals of the property ? Even if working when you purchased these items might be at the end of their life expectancy and might be a huge cost down the road which will affect your cash flow.

3. Do the apartments you are considering for purchase all connect to ONE water line for a city or are they on individual meters? This is important as some owners might not pay their share of the bills and then the city might shut off the whole connection. Now you have an unhabitable property or are stuck sharing the bill with other  owners to get services restored. You also want each of your units individually metered so that the tenants pay for their own utility bills. Used to landlords would lump utilities into the payment but they are so high today you want the tenants to cover that cost.

4. Pay attention to how strong or weak the current leases are that you will be assuming when you purchase a property.You could be tied into very bad leases that affect cashflow. 

5. Make sure you are purchasing at a price where you can keep rent rates low and make a good profit. New apartment complexes pop up all the time in the Atlanta Commercial Real Estate market. Example for a quadraplex that has 2 bed 1 bath units if the going area monthly rent rate is 600 to 800 per unit price your net operating income off of 600 to 675 rental rates so your property will always rent over the nearest competitor. Always keep your properties in top shape so your tenants understand what is expected of them.

These are just a few tips when purchasing an Atlanta Georgia apartment for Atlanta Commercial Real Estate investment  purposes.

Contact Joel Owens at 678-779-2798 or fill out the form below.