Columbus GA Apartment Buildings

[Taylor Shapiro]

Does anyone currently invest in Columbus GA? I was sent the financials on a 30+ unit apartment community which appears to have some good upside apart from cashflowing if purchased as-is. All units are 2/2, 1000 sqft and rent for an average of $675. I'm seeing anywhere between $725-$750 for a 2/1, 1000 sqft in the surrounding area. 

Can anyone share some thoughts on the area? I know Fort Benning is a staple in the area along with a handful of larger companies including AFLAC. Is this an area worth looking into? 

[Andrew Cushman]

@Taylor Shapiro, I have owned a 75 unit property in Columbus for a little over 3 years now.  The short version is Columbus is relatively flat in terms of job growth, population growth, and rent growth.  And while military spending looks good for the next 4 years, I would be extra cautious about buying a property that relies heavily on a base.  Any big budget cuts or troop deployments can quickly put your property in jeopardy.  

As is often the case with most cities in the U.S., the north side of town is the better place to be (I have never been able to find a reason for this very prevalent trend!).  Higher incomes, better retail, and the majority of the growth.  The further south and east you go, overall the demographics get weaker.

Would I buy a property in a market like Columbus?  Absolutely.  I have in the past and more then doubled the value of the properties, plus created double digit cash flows.  The key is to make your money when you buy - your value creation has to be based on finding a property that is well below market and bringing it up to today's market, and not banking on the market to carry you.  If the market does increase, that's just a bonus.  So that means compared to a booming market like northern Atlanta, in Columbus you would be even pickier about location, demographics, the price you are willing to pay, etc.

For me the bottom line is this - I don't actively hunt for deals in Columbus, but I would definitely buy the right property in the right part of town for the right price.  In doing so, I would only plan on improvement from my efforts, and not from an overall increase in the market.

I hope that helps!

Andrew