Location…Location…Location !

The old adage holds true.  The key to maximizing appreciation is related to location. Buying in an area where prices have already popped will bring poor rental returns and reduced appreciation. Buying in a location that is not attractive to potential tenants will leave a property vacant or with low rents. Buying in a location where there is no impetus for future growth will yield appreciation lacking compared to better areas.

I have focused on trying to identify neighborhoods where I feel the potential for future appreciation is excellent and where current rental to home price ratios are in line with expectations. Here are the fundamentals of what I look for:

-         Jobs.   The neighborhood must be located near large employment bases. This means close to downtown Atlanta, close to the airport, close to local manufacturing plants and close to public transportation.

-        Parks.  I believe that the close proximity of large, nice public parks represents a strong upside potential for most neighborhoods.

-         Re-Development.  This is a crucial factor.  The City of Atlanta is currently moving forward with the Beltline redevelopment program. This is going to ultimately transform many inner city neighborhoods. In addition, Ft. McPherson is currently scheduled for closure and the site will be receiving Federal dollars for a comprehensive redevelopment into high end retail and residential use. Neighborhoods that are close to these redevelopment programs are highly likely to see values benefit as the developments progress.

-         Proximity of Multi-Family Housing.    Nothing spells doom for an inner city neighborhood like the close proximity of dilapidated multi-family housing. Whether it is City housing projects or simply older privately owned apartment buildings, these cheap rental centers invite the very sort of individuals that drive a neighborhood down. You cannot run the bums out of a neighborhood if that is where they live! I will not buy homes in a neighborhood where these multi-family structures are intermingled with the single family homes.

The neighborhoods that I am focusing on have all of these benefits and none of the negatives working for them. Neighborhoods must be evaluated on a street by street basis but the above factors are my core guidelines.