Clayton County market

[Paul Evans]

I have been doing my homework in the Clayton County area and here is what I have found:

1) There is A TON of inventory

2) Prices seem to be not going too crazy in this "sellers market"

3) Neighboring Fayette County has about 1% of the inventory that Clayton Co does

Question to Ga investors - Would you target this market? And if so, does anybody have PM that they use for this area?

Second Question - Do you think because of the schools in Fayette County that I should just wait for Fayette deals knowing that renting there would be a non-issue and you can raise the rates dramatically?

Any response from people that have invested in this area would be greatly appreciated.

[Joel Owens]

Not a fan of that area. There is a reason why one area has very low inventory versus the other. Look at demographics, crime,school systems, economic development departments, planning commission, health of the county with budgets,etc.

I like to invest in growing and safe areas. Initial cash flow might be less but appreciation and rent growth over time usually is better. The low end areas that are doing OKAY right now at peak cycle when a down turn happens generally move to a D to F area as people lose their jobs or they are cut back. Vacant houses increase and crime which pulls down the area more etc. The low end areas are basically cash flow only plays unless the area over time is one of the rare that gentrifies.

Find the best area you can buy in with strong growth and try to rehab something. That is a way to improve your all in rent to purchase ratio.

I am not a speculator.

Good Luck