Multifamily investing in Macon Ga

[Minh Doan]

I am looking at a 4 flex’s in 31217 Macon Ga. the property is in good condition, owner occupied in 1 unit and will move out after closing. It is currently rent to 1 section 8 tenant full pay by MHA. Another approved section 8 tenant will move in on 02/01and they both pay $540 a month. Third tenant has been there 3 years and on month to month paying $500. Market rent is 600-700 and it is listing for 150K. I went through couple of similar posts and learned that other investors have the 2% rent to price criteria. Is it still possible for now? The property will need some work done estimated 15K. It is on market for 50 days. Should I offer 105k?

Thank you,

[Jason C.]

Minh did mention the owner did live in one of the units, her name is on the tax page as owner and the address is the same as the property. 

I agree, it’s discretionary, if buying in a C class area. Money can be made, 2% rule can be achieved but other problems will arise. That property could profit if the price is right and the buyer screens tenants well.

Tenants live and pay rent everywhere, regardless of area. Being a flexible yet firm landlord is key. Regularly, tenant occupied houses are being sold in Macon’s not so good areas with 10+ year long term tenants in place; whether a new buyer wants to continue that occupancy is their decision.

At least in Macon, depends on what you’re looking for. Midtown and North Macon are good rental areas but prices are higher. Downtown is hip and growing but prices are higher for 100+ year old buildings. South, West and East are less expensive houses but some areas have been forgotten about by the city and it shows. This area can achieve the 2% rule after updating and “tenant proofing”.