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Advice on buying a $9000.00 house…

I have a house listed for sale for $9000.00. The house is located at 1245 Byewood Lane in Southwest Atlanta. It’s a short sale.

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It’s open for showings.

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It’s pretty big.

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It backs up to the city of Atlanta’s “Oakland City Park.”

I get inquiries from around the world about it – it has been on the market for over a month, yet no one seems to want to buy it.

Oakland City is in one of the most distressed zip codes in the country, 30310.

Regardless, in my opinion, 30310 has a great twenty to thirty year outlook – it’s the zip that I will buy in when I start landlording new properties again.

Here’s some advice I’ve offered recently to a potential investor – a guy from Australia:

I  told him – check out these links that detail current trends in and around 30310:

1.  Fort McPherson redevelopment

2. Lakewood Fairgrounds redevelopment

3. Ford assembly plant redevelopment and the recent commitment by Porsche North America

The way that I see it, the long term plans for some of the most distressed parts of Atlanta are quite good – areas like the southwest side, plus cities like East Point, Hapeville and College Park.

However, these all have a lot of immediate need for school advancement, policing, infrastructure and retail and lifestyle amenities.

When I buy there, I do not expect the properties to increase in value for at least twenty years. Really…

I asked this gentleman from Australia who inquired about the property: “are you thinking that long term?”

I suggested: “if you want turn key, move in ready houses – houses with the potential for positive cash flow – then choose the best school districts, and plan to pay a lot more for the long term ROI goal. I suggest that you look in the $65-80,000 price range, and that you seek close in, urban Atlanta properties.”

I am a big believer in the strength of Atlanta’s urban core versus many of the weakening suburbs, however if you think that “in general” US real estate is really a great “investment,” then think again. I suggest that a buyer get very clear on what they seek from their real estate – I suggest the value of usefulness first, then investment performance.

When it comes to buying a $9000.00 house in 30310, the real estate investment will only be as good as the investor who is on task. An investor who is hands on, on site as frequently as is needed, and in the face of the tenants…

I like the Intown Atlanta neighborhoods and the best Intown Atlanta and Decatur school districts, long term. Recently, we’ve seen decent price stability in these submarkets. Some streets are thriving!

But nationally, we will continue to see price drops over the next 3-7 years. One of the links above calls for another 40% decrease in values over the coming years, and how cash will remain king.

I believe that’s true.

As the population of the US re-migrates, reorganizes and resets itself for the future, what are your thoughts?

My thoughts are that a $9000.00 house in 30310 is a buy, as long as you know what you are doing with it!

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