Hard money and fix and flip loans in Atlanta, Georgia

The Atlanta market for investors

Atlanta is the center of a metro area of more than six million people and one of the fastest-growing regions in the country, with a large economy anchored by the world’s busiest airport, corporate headquarters and major universities. Its housing ranges from 1910s and 1920s Craftsman bungalows on the east and west sides to postwar brick ranches farther out.

Investors renovate dated houses for resale, hold single-family rentals and duplexes, and build new homes on infill lots. The Atlanta BeltLine, a 22-mile loop of trails and parks on old rail lines, has pushed values up in the neighborhoods it passes through.

Neighborhoods investors ask about

• Kirkwood, Edgewood, East Lake and East Atlanta: Craftsman bungalows and new infill on the east side
• West End, Adair Park, Capitol View and Pittsburgh: older homes near the BeltLine’s Westside and Southside trails, some in historic districts
• Grove Park, English Avenue and Westview: lower entry prices on the west side
• Lakewood Heights, Thomasville Heights and South Atlanta: lower-priced homes to renovate and rent
• Riverside, Bolton and Underwood Hills: postwar homes and new construction in northwest Atlanta

Plan for these on a Atlanta deal

• Georgia taxes real estate on 40% of fair market value, and investment property gets no homestead exemption or cap on yearly increases. A recent sale price usually becomes the new value, so budget taxes on what you pay.
• Georgia’s transfer tax is $1 per $1,000 of price, usually paid by the seller. A long-term mortgage note adds intangible recording tax of $1.50 per $500 of the loan, up to $25,000; short-term notes are generally exempt.
• The city licenses short-term rentals only for an owner’s primary residence and one additional unit, so most investor houses must rent long-term. Underwrite on long-term rent unless the address can legally host short-term rentals.
• Removing most trees on private property needs a permit under the city’s tree protection ordinance, with replanting or fees for trees you take down.
• Exterior work in historic districts such as Inman Park, Grant Park, Cabbagetown, West End and Adair Park needs approval from the Urban Design Commission.
• Older houses often sit on crawl spaces, where moisture, wood rot and termites are common. Get a full inspection and a termite letter before you set the rehab budget.