Savannah, GA rental market

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Savannah, GA rental market

Ryan Hampton
Member since 2020 · 6 posts · 2 votes

Disclaimer: I'm a first time poster so please bear with me.

I'm a Michigander moving to Savannah Georgia (well, Richmond Hill) late this summer (2020). I've only been cranking on my real estate investment education for a month now, but I'm a quick study. I'm looking for multi-family residential or small apartment complex rental properties. If the deal is good and the numbers work, I've got cash to cover up to 20% (probably).

I know I need to build up a team of players around me (real estate agent, lenders, lawyer, CPA, etc.). How can I go about starting this? The Meetups in the area don't look very active and I'm not a drinker so would prefer to avoid bars for networking.

How can I hit the ground running and purchase a property within a few months of moving in (move in date = mid-late this summer)? I'm almost thinking of a plan to find tenants that are college kids whose responsible parents are footing the bill. Maybe a sorority/fraternity type deal. Is there a strategy that exists like this or would the market likely be monopolized for that type of housing? I'm talking local colleges and SCAD.

Thanks for taking the time to read and please respond even if you don't have Savannah market experience specifically. Take care and dream big!

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Matthew Poulos
Baltimore, MD · Member since 2017 · 2 posts · 2 votes
6y
There are plenty of college rental opportunities between SCAD, Armstrong, Savannah State, and South University.  Additionally there are two large military installations in the Savannah area with Fort Stewart and Hunter Army Airfield.  Military rentals are great!   I would suggest starting with a realtor or a real estate attorney in the area to initiate your networking.  Please DM me if you need suggestions.

There is plenty of growth in Savannah as well because of the port.  The area around the airport, Pooler, GA in the last 7 years has exploded.   Richmond Hill/Bryan County, is the best school district and the most desired area outside of Old Town, Savannah.  

And to answer your question about college rentals, yes.  The strategy is to require the parents to co-sign the lease.
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  • Matthew Poulos
    Baltimore, MD · Member since 2017 · 2 posts · 2 votes
    6y
    There are plenty of college rental opportunities between SCAD, Armstrong, Savannah State, and South University.  Additionally there are two large military installations in the Savannah area with Fort Stewart and Hunter Army Airfield.  Military rentals are great!   I would suggest starting with a realtor or a real estate attorney in the area to initiate your networking.  Please DM me if you need suggestions.

    There is plenty of growth in Savannah as well because of the port.  The area around the airport, Pooler, GA in the last 7 years has exploded.   Richmond Hill/Bryan County, is the best school district and the most desired area outside of Old Town, Savannah.  

    And to answer your question about college rentals, yes.  The strategy is to require the parents to co-sign the lease.
    1Reply
  • Basit SiddiqiBusiness Member
    Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
    6y

    @Ryan Barnett

    I host real estate networking events in NYC and they are a great way to build your team/references. True - Most networking events are held at a bar. This is simply the cheap avenue of hosting an event.

    The event space is normally "free" so long as the guests spend $$ on items at the venue. The events in bar's are normally hosted on "slow days" such as Monday - Thursday not to compete with the busy days the bars normally would have on Friday to Sunday.

    You are no required to get an alcoholic beverage. You can order soda or even food. Technically - you can also buy nothing but if you attend a networking event and get some value, help the host by spending $5 - $10 at the venue.

    You can make connections such as lender, agent, cpa, lawyer, etc).

    [email protected]917-280-8544
    Basit Siddiqi CPA4.979 Reviews
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    1Reply
  • Eric Kenney
    Member since 2020 · 3 posts · 2 votes
    6y

    I live just outside of Savannah, but I am currently out of the country for work. Richmond Hill sits between Ft Stewart/Hinesville and Hunter AAF. Hinesville is your typical Army town, pawnshops, more remote location. But, it does have a large presence of military personnel. Typically they rotate to another duty station every 2-3 years. Hunter AAF is smaller, but sits in Savannah. 

    Believe it or not, there is a fairly big foreign student population (around 22%) and with that, I find that they are more concerned with amenities than price (think pools and walking distance to things). I have been watching Zillow for duplex/triplex and usually 6-8 sell per month. The closer you look to River St, the pricier it gets. The further south towards Richmond Hill, the less expensive. 

    I worked with a realtor when I first moved here. She and her husband work a lot with people moving due to work (like I was). It is an attorney state, so when I purchased my house, we had to go to an attorney (not sure if he does a lot of work with investors as opposed to traditional homeowners, but it would be a start). PM me if you want their names. 

    I was sent abroad for work shortly after I moved, so I haven't had a chance to visit any of the realtor meetups or REIA. I get back in the fall so we could link up then.

    Eric

    1Reply
  • Ryan Hampton
    OP
    Member since 2020 · 6 posts · 2 votes
    6y

    @Matthew Poulos

    Great to know there are so many opportunities for both college and military -- I'd not even considered that option. Are the same characteristics that apply to college renters typically those at play with military renters? I mean, are there any differences in your experience?

    I'll for sure DM you regarding real estate agent connections. 

    You gave me some gems to run with so thanks so much for your input. Be well!

    0Reply
  • Ryan Hampton
    OP
    Member since 2020 · 6 posts · 2 votes
    6y

    @Basit Siddiqi

    I see, great points about a bar still being legit. I think I'll take your advice to either see if some meetup exists or just form my own. Then I don't have to host at my place and pay $$$ for food and all that. Monday - Wednesday would probably be best at a bar in a college town.

    Any advice for how to connect with a great CPA in that area to consult with?

    Thanks!

    0Reply
  • Ryan Hampton
    OP
    Member since 2020 · 6 posts · 2 votes
    6y

    @Eric Kenney

    Wow, seriously thanks for such a detailed response, I'd definitely like to connect.

    Specifically, it would be good to hear more about the trends you see in the market (types of homes, certain street values going up, etc.). 

    I'll follow up with you in a DM if you don't mind :)

    0Reply
  • Dave DeMarinis
    Lender · Santa Rosa, CA · Member since 2017 · 283 posts · 255 votes
    6y

    @Ryan Hampton Student rentals is definitely a niche but it is more business and less real estate. In real estate, turnover is a costly enemy. The lower your turnover, the better your cash flow.

    In student housing, you have turnover every year in every unit pretty much. The second big difference is if you miss the lease up window for fall move in’s - it is COSTLY.

    There are people who specialize in student housing so I’m not saying it isn’t viable. It is just more complicated than it looks and there aren’t as many resources to help you as traditional landlording. I had casual interest in it for years and finally did a deep dive and decided it wasn’t for me as an operator.

    1Reply
  • Ryan Hampton
    OP
    Member since 2020 · 6 posts · 2 votes
    6y

    @Dave DeMarinis

    Ah, so then it becomes a game of optimizing around gettin those students in the fall. I see the potential risks there, and I'm sure renters are aggressive about trying to get their houses booked.

    Is there an alternative niche within the multifamily rental category that you'd suggest I look into? 

    What strategy did you end up going with?

    0Reply
  • Dylan H.
    Rental Property Investor · Savannah, GA · Member since 2018 · 174 posts · 129 votes
    6y

    @Ryan Hampton Tons of investment opportunities in Savannah. If you have a facebook I recommend joining the Savannah Real Estate Investors facebook page. Probably not going to find multifamily deals there (facebook page), but you can start to make great connections for when you move. It's a great and competitive market.

    1Reply
  • Dave DeMarinis
    Lender · Santa Rosa, CA · Member since 2017 · 283 posts · 255 votes
    6y

    @Ryan Hampton it really depends on your specific goals and what role you want to play. I'm kind of a contrarian on BP in small multifamily specifically. If you are going to self manage with local knowledge and very hands on, I think it works really well. If you will be less involved in the day to day, small multifamily doesn't really give the scale that Multifamily needs to make up for the higher turnover compared to Single Family Homes. There is a reason the hedge funds buy SFH and other hedge funds invest in huge complexes (at least 100 units and often 250+).

    I think a really good first filter is the rent levels. They vary from market to market obviously, but I think $800 is a pretty good threshold in most markets. Below $800, it is very hard to be profitable because there isn't enough $ to pay for higher vacancies, repairs, maintenance, capX, taxes and insurance and get decent property management. For example, a 4 plex with $600 per unit rents is a big red flag for me. 

    1Reply
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