Macon Ga Market what is the catch ?

[Robert Collins]

I’ve been coming across a lot of Macon ga off market deals, that are super cheap & from the pictures the home look livable, which some actually have tenants so I’m wondering what the pro & cons . I’m strictly looking for strong cash flow, some of these houses are selling for low twenties & are renting high six hundreds, one thing I see is the average home value is exactly what you pay for low twenties but if I’m buying strictly for the cash flow, what’s the harm ? Maybe I’ve been listening to Clayton  Morris from Morris invest too long 🤣🤣🤣🤣

[Lee Taylor]

@Robert Collins you’ll get strong cash flow in Macon with those numbers and they’re not unrealistic. What potentially will kill you is turnover. You must have great systems for getting good tenants and keeping them. Some areas are much better for crime and overall quality of neighborhood.

[Joel Owens]

I only do commercial. For residential along with crime etc. look at AGE of the house. Lots of these houses are really old. The capital expenses over a 5 to 10 year old could eat you alive (new roof, heating and ac, water heater, knob and tube wiring, siding, foundation issues, galvanized plumbing, asbestos, poly pipe, etc.) . The cost to repair the house on a continual basis could eclipse the total value of the property purchased. Throw in tenant evictions, lost rent, damage to the property, etc. and you could really lose big.

Investors get sucked into buying these dump properties. The people making money are the flippers making 3k to 5k per property spreads selling the trash.  

Most of the good stuff sold in A to B areas between years 2009 to 2012. Buy 50k cash back then put in 10k repairs for 60k all in and rent of 650 and now today those have doubled in value or more and rents are 1,000 a month plus. The wholesalers today usually only have the cheap dumps in marginal areas to sell at low prices now.

Look up David Krulac and buying tax liens etc. He made about 12 million part time and has hundreds of examples in his book. Might be able to start with smaller amounts and then as amounts get larger trade up into nicer assets.

Most people to be comfortable need about 100k a year pre-tax so at 1,000,000 cash invested that is 10% return or about a 14.5% return at 750,000 invested.  

[Robert Collins]

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[Robert Collins]

@Joel Owens @Lee Taylor thanks for info very informative