Augusta GA rental Market question

[Eric Thompson]

Just getting started and looking for buy and hold options in the Augusta, Evans, Martinez area. I think I have found a good options but I am getting a bit confused. Are any of you finding the market is better for SFH or Multi Family? I have been doing all my research online as I am out of country at the moment.

I can tell you I have been looking into more and more single family homes as it seems there is  more to choose from. This is not a surprise. Also I am not sure anyone wants to share the info but is there certain areas that you may have found to be more conducive to renting out than others.

Thanks for all the help and I look forward to the discussions.

[Chris Majors]

Hi Eric.  I'm an investor and agent in the Augusta, GA market.

Most of my rentals are single families in the South Augusta area.  You can still find cheap properties and the rents are strong relative to the cost.

I like to be in a 3 bedroom about $35k acquisition and rehab which will rent for $675-750 ($675 Section 8) which gives me around 15% cash on cash return after taxes, insurance, vacancies, repairs, etc.

Compare this to Martinez, Evans, or West Augusta where you will be lucky to find a 3 bedroom fixed up for less than $100k and the rents are going to be $800-1000.

Of course this doesn't take into account leverage or appreciation and the South Augusta area is "less desirable," but I believe the sweet spot for single family rentals is the "blue collar" area with strong employment, good public transportation, and solid homes built after the 60's.

Be mindful this model is purely based on cash-flow and I do not consider appreciation.  I believe Columbia County and West Augusta will continue to see moderate appreciation while South Augusta and Hephzibah will continue to remain more stagnant.  I think most seasoned investors will tell you that you shouldn't buy rentals for anything but cash flow.