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Best Markets for a Rental Loan in Georgia

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Georgia city skyline ripe for rental property investment - ECF

Real estate investing is a great way to invest your capital to generate optimal returns. But you must first know which markets to invest in and when. Otherwise, you could be kissing your hard-earned money goodbye with poorly planned investments.

Georgia boasts a diverse real estate market with plenty of potential for investors. The Peach State has the 8th largest population in the country and features a diverse geography and a warm climate that are major draws to individuals looking to relocate.

Where else can you enjoy a hike on the historic Appalachian Trail, catch some rays on the world class beaches of Sea Island, or impress history buffs with the Martin Luther King Jr. National Historic Site in downtown Atlanta?

All these major plusses explain why home values have risen across the board on a statewide basis and landlords can lease their rental units out in under two weeks on average.

Still, Georgia is a big state, and there are a number of local markets with fluctuating behaviors to consider as potential locations for your next investment project.

Here is a closer look at some promising markets for investment properties to help kick off your search.

Atlanta 

Let’s be honest, you can’t talk about the Georgia real estate market without mentioning its most active (and promising) regional market of the capital city Atlanta. Over 5.5 million individuals already live in Atlanta, and the U.S.

Census Bureau anticipates this to expand to 7.5 million by mid-2022 a projected growth rate of over 100% of the national median. This exponential growth rate is resulting in an almost unsatiable demand for rental property options to accommodate flexible working situations and younger lifestyles. The main culprit behind Atlanta’s growing population is its booming economy.

The job growth rate is otherworldly, fueled by the relatively low cost of conducting business operations that has prompted major corporations like UPS and Coca Cola to choose it as the location for their company headquarters.

For sports fans, the city has plenty to offer with the Braves, Dream, Falcons, Hawks and United all calling Atlanta home.

Considering home prices have increased by an astounding 14.4% year over year and listings only spend an average of 3 weeks on the market before being leased or sold, Atlanta is just as appealing to aspiring real estate investors.

Lawrenceville

Investing in property in Lawrenceville, Georgia offers numerous benefits to real estate investors. Located in Gwinnett County, Lawrenceville is a vibrant and rapidly growing suburb of Atlanta, making it a prime destination for property investment.

The area boasts a strong local economy, with a diverse range of industries, including healthcare, technology, and education. Its proximity to Atlanta provides easy access to employment opportunities and cultural attractions, enhancing its appeal to tenants and potential buyers.

Lawrenceville is known for its excellent schools, which make single-family homes particularly desirable. The city also features a charming and historic downtown area, providing a sense of community and a desirable quality of life.

On top of all that, the city’s affordability relative to some other Atlanta suburbs, along with its steadily appreciating property values, positions Lawrenceville as an attractive destination for property investors seeking long-term growth and rental income potential.

Marietta 

Marietta is another Atlanta suburb, with a population of around 70,000 Positioned just to the northwest of Atlanta proper, Marietta is a historic community with loads of charm that has something to offer everyone.

From the cultural attractions like the Black Heritage Walking tour to the nearby SunTrust Park, it’s easy to understand why home values have jumped 7.1% in the last year alone.

Landlords report that they receive more than 30 leads per listing, and the typical rental unit only sits vacant for under two weeks before being filled meaning real estate investors can expect their properties to rent fast at a premium price point to optimize returns.

Roswell 

Roswell is a suburban community within driving distance to Atlanta that is slightly larger than Marietta. The city features a pristine 640-acre historic district that boasts tours, restaurants, retail outlets, theaters and trails along the scenic Chattahoochee River.

The housing demand in Rosewell is astronomical, with landlords receiving more than 65 leads per property and seeing units leased in under two weeks. Home values are appreciating nicely at 2.1% annually, thanks to the strong local economy.

Properties are still relatively affordable, meaning that the financial barrier to entry is still not prohibitive even for newer investors on tight budgets and they should be able to recoup their initial down payment quickly thanks to the high average rental income in the area.

Apply For Financing for Your Georgia Investment Today

If you are looking to get funding for a rental loan in Georgia, let Express Capital Financing help you with the capital you need to close on your next real estate investment!

We fund loans in Georgia frequently and understand the ins and outs of the market.

Apply today to get started!

FAQ

Determine Your Budget: Calculate how much you can afford to invest in a rental property, including the down payment, monthly mortgage payments, and other expenses.

Check Your Credit: Review your credit score and credit history. Meeting a minimum credit score or having a strong credit history will help you qualify for better loan terms.

Prequalify: Contact multiple lenders to prequalify for a rental property loan. This will give you an idea of the loan amount you can secure and the terms available to you.

Property Search: Begin your search for rental properties in Lawrenceville that align with your investment goals. Work with a real estate agent who specializes in investment properties.

Make an Offer: Once you find a suitable property, make an offer and negotiate the purchase price with the seller.

Complete Loan Application: Once your offer is accepted, complete the loan application with your chosen lender. Provide all necessary documentation, such as evidence of positive cash flow and property details. and property details.

Close the Loan: Successful applicants will proceed to the closing process, where you'll sign the necessary documents and secure the financing.

It's essential to conduct due diligence, evaluate the local rental market, and work with professionals who have experience in real estate investments to make informed decisions when obtaining a rental property loan.

If you're interested in obtaining a rental property loan in Georgia, there are several rental loan options available. Here are some common types of rental property loans and steps to help you get started:

Traditional Loans:

Mortgage loans are available for rental properties from conventional lenders. You can typically expect to provide a down payment of at least 20% and meet credit and income requirements. Contact traditional lenders such as local banks, credit unions, or mortgage brokers to explore your options.

Real Estate Portfolio Loans:

A real estate portfolio loan, also known as a portfolio mortgage, is a financing solution designed for real estate investors and property owners who own multiple properties. Unlike traditional mortgages that are structured for a single property, portfolio loans allow borrowers to finance multiple properties with a single loan, simplifying the financing process for those who have diverse real estate investments. These loans are typically offered by banks, credit unions, and private lenders.

Hard Money Loans:

Hard money loans are short-term loans provided by private money lenders or firms that are based on the property's value rather than your creditworthiness. These asset-based loans can be more expensive in terms of interest rates and fees, but they provide quick financing for property investors to take advantage of an investment opportunity quickly.

FHA 203(k) Loan:

An FHA 203(k) loan is a type of mortgage loan offered by the Federal Housing Administration (FHA) in the United States. This loan program is designed to help homebuyers purchase or refinance a home and finance the cost of renovations and repairs into a single mortgage. It's a popular option for people who are looking for a fix and flip loan to make substantial improvements to an existing property before selling it.

Rental Property Loans:

This type of loan, also known as an investment property loan or rental property mortgage, is a type of mortgage or loan product specifically designed for individuals or investors looking to purchase or refinance real estate properties for the purpose of generating rental income. These loans are distinct from traditional home mortgages, which are typically used to buy a primary residence. Rental property loans are tailored to the unique needs and financial goals of real estate investors. 

The entire process involves several key steps. First, potential borrowers typically begin by researching and choosing a private money lender that offers competitive rates. They then submit an application, which includes financial information, such as tax returns, income verification, credit history, and details about the property they want to purchase or refinance. Lenders will assess the borrower's creditworthiness and evaluate the property's income potential and value. If approved, borrowers may receive a pre-approval letter, which they can use to make offers on rental properties within their budget. Bear in mind there will also be fees to pay such as appraisal and organization fees as well as other closing costs.

Once a rental property is under contract, the lender proceeds with the approval process, which involves a thorough review of the borrower's financials and the property's details. If everything checks out, the lender provides a loan commitment letter, and the borrower proceeds to close on the property. After the loan closes, the rental property owner can use the loan proceeds to purchase or refinance the property. Throughout the life of the loan, borrowers are typically required to make regular payments, which include both principal and interest. It's important to note that the rental loan process can vary depending on the lender, the type of rental property, and the borrower's financial situation, so it's crucial to work closely with a knowledgeable lender or mortgage broker to navigate this process successfully.

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