Market Deep Dive: Atlanta Georgia with Dan Nelson

Tom and Michael chat with Dan Nelson from Excalibur Homes about the specifics of the Atlanta Market.  --- Transcript   Tom: Greetings, and welcome to The Remote Real Estate Investor. On today's episode, we're going to be deep diving in the Atlanta market. And we're here today with Dan Nelson. And I'm also here with   Michael: Michael Albaum.   Tom: All right, let's do it.   Tom: Before we jump into the interview, let's touch on some of the quantitative aspects of the Atlanta market. So this information is coming from the Census Bureau, Macrotrends as well as John Burns. First, I'm going to talk about the population in Atlanta proper, just over 500,000 individuals in the greater MSA population, there is just under 6 million so 5,000,800 and we've seen a population growth of 2%. Over the last year, the median household in Atlanta that's $71,000. The existing home values year over year has increased by 5.5%. And the effective apartment rent has increased by 2.4%.   The home value entry level according to John Burns is at $196,000. The existing median home price is $279,000, then median single family rent is $1,364. And the year over year rent growth of that single family has grown a whopping 5.6%. The single family gross yield is 7.8%. Jumping into a different category. Let's talk about the occupancy rate. So the occupancy rate in Atlanta is 91.3%. The number of unique units properties are artists 2,331,002. And of that the owner occupied mix up 59% of that or 1.367 million, renter occupied and makes up just over 750,760 9000 to be exact, and vacant right now is a little bit under 200,000. And that's at 8%. All right, let's jump into the interview.   Excellent. So before we jump into the Atlanta specifics, Dan, I'd love to hear a little bit about yourself and the company that you work for and all that good stuff.   Dan: Yeah, my name is Dan Nelson. I'm the VP of Sales with Excalibur homes. I'm a third generation realtor. My grandmother, Mary Nelson was just recently inducted into the DeKalb County Hall of Fame for realtors, which was exciting for the family. My dad, Mike Nelson, the founder of Excalibur started the company back in 1985, he had a primary focus towards property management versus sales looking for a little bit more stability for himself and our family. While he was at the same time simultaneously was in the National Guard, flying helicopters, my brothers and I all grew up within the company. So we started in, you know, Middle School in high school with learning turnkey, and construction and landscaping during the summers as well as once we were old enough to drive taking administrative positions within the company, learning everything from the ground up, essentially how to each department operate, understanding each job and also working each job for a couple years at a time.   I took a brief stint down in Florida, working in the multifamily industry with some with a company out of Tampa called 908. Development, they did a low income tax credit company where they did a high rise in downtown St. Pete. So I handled the lease up and stabilization of that project that was in the 2009 to 2011 timeframe, I had my Florida real estate license down there. While I didn't need it for that job, particularly, I moved back to Atlanta in 2012, I had my Georgia real estate license here. And that was about the time 2011 2012 we started seeing institutional folks and through the Atlanta market, doing things we've never really seen before buying properties on a level that was kind of unheard of in the SFR space, you know, typically they were not really big players and this type of market until then.   So when I came back, it said, Hey, Dad, you know, we're going to go buy a couple hundred houses at a time, you know, not five, not 10. So it's a very exciting time for us to go through and one learn how an institutional level underwriting works, how they're evaluating homes, you know, what they're going to consider capitalize