How to Evaluate a Metro Atlanta Investment or Redevelopment Property

by Carmelita Collier

An investment property should be evaluated based on what it can realistically do—not simply how attractive the opportunity sounds.

For some buyers, that means rental income.

For others, it may mean renovation, redevelopment, commercial use, land value, or long-term appreciation.

The first step is defining the strategy.

Identify the Intended Use

Ask what you want the property to accomplish.

Possible strategies include:

Long-term rental
Renovation and resale
Commercial investment
Redevelopment
Land hold
Future development

A property that works for one strategy may not work for another.

Understand Acquisition Cost

The purchase price is only the beginning.

Additional costs may include:

Closing
Financing
Repairs
Renovation
Professional studies
Holding expenses

Calculate the realistic total investment.

Evaluate Existing Condition

Review:

Structure
Roof
Mechanical systems
Plumbing
Electrical
Foundation
Site condition

For development properties, the existing structure may represent value—or simply a demolition cost.

Look at the Land

Consider:

Parcel size
Shape
Topography
Access
Utilities
Surrounding use

Understand Current Zoning

Before assuming a property can be redeveloped, understand its current permitted use.

Potential changes should be evaluated with qualified land-use and planning professionals.

Research Market Demand

Ask what buyers or tenants actually want in the area.

Demand may differ for:

Residential
Multi-family
Retail
Office
Industrial
Land

Evaluate Rental Income Realistically

For income-producing property, review:

Current rent
Market rent
Occupancy
Operating expenses
Maintenance
Management

Gross income is not net income.

Understand Holding Costs

Development timelines can be uncertain.

Potential holding costs include:

Financing
Taxes
Insurance
Maintenance
Security
Utilities

Consider the Exit Strategy Before Buying

Ask:

Who could buy this later?
Could it be sold without redevelopment?
Could another investor use it?
How broad is the future buyer pool?

Stress-Test the Strategy

Ask what happens if:

Construction costs rise
Approval takes longer
Rent is lower
Sale price is lower
Financing costs increase

A stronger deal should not depend on every assumption being perfect.

Bring in Specialists Early

Depending on the opportunity, appropriate professionals may include:

Attorney
CPA
Engineer
Architect
Surveyor
Contractor
Environmental consultant
Lender

Look at the Property from More Than One Angle

My residential and commercial experience has taught me that the value of a property is not always limited to its current use.

Sometimes the opportunity is obvious.

Sometimes it takes deeper analysis.

My role is to help investors and property owners understand the real estate side of that opportunity, identify the questions that need answering, and bring the right people into the conversation.

Real estate is not only about what exists today.

Sometimes the real value is in what comes next.