How is the Macon Area?

Question

How is the Macon area in general?  It seems like the city had some issues in the past and census data looks like the area is on the decline, however if you dig through the news stories, there seems to be a lot of growth coming to town in the next 1-2 years, and rents seem to be pretty uniform across the area.

Jason C. · Answer

The Macon, Ga area in general is a good area for rentals, anything from Class A - D depending on what you are looking for. North Macon and growing areas above are Class A & B areas with anything from new construction to classic 1960s - 1980s single family starter homes in the 2/2, 3/2, 4/2, 4/3 bedroom/bath range.

Downtown central is slowly growing and hip to the younger crowd and professional 25-35 year olds. Anything from older remodeled bungalow or colonial style housing on the outskirts as well as polished lofts/studios above businesses in the heart of downtown. Its a smaller downtown but all the bars, restaurants, etc are concentrated in a particular 5-10 block square.

South and East Macon are older with less expensive housing in the Class B - D range respectively.

Also Warner Robins, right outside of Macon, is a growing military town with a booming military base that brings new tenants in every year. Most houses in that area are newer construction with older houses on the outskirts as well.

There are also community publications, social media pages and property management companies to help with keeping the rental houses full. Property taxes/Insurance aren't too high since its not a large metro area.

Many multi family opportunities through out the city ranging from dublexes to 100+ apartment communities. I actually remember a Bigger Pockets Podcast I listened to recently where an out of state investor purchased a larger apartment building/complex in Macon, Ga a few years ago. @Brandon Turner or @David Greene  can probably help out with the actually podcast number and guest.

Hope this helps, feel free to ask more questions. I'm a local native to Macon with a handful of single family rentals that I've acquired over the past 8 years. I stick with the 1% rule for my houses but its easy to get at least 1.5% with the right properties.

Lee Taylor · Answer

Macon (Bibb County) and Warner Robins (Houston County) are the two major cities in the area for investing. The Middle Georgia area is ripe with good cash flowing deals, but Macon also has a lot of properties that are basically beyond hope at this point.

@Jason C. offers a lot of accurate and relevant advice. The podcast he's referring to is Andrew Cushman I believe. I would add that just like any market there's opportunity, it's more a matter of having a strategy that fits that market.

For example, I am purchasing a home for $12,700 that is rent ready is a C- neighborhood that will rent for $700 with Section 8. I also flip in the area, but the average home prices for our flips are $100,000-150,000 ARV. We typically are making between $20,000-30,000 profit.

Houston County is one of the fastest growing counties in Georgia and offers a very strong school system top to bottom. New construction prices have gone up 10-20% over the past 3-4 years, but existing construction is much more in line with a healthy national average under 5%. As an outside investor the key to being successful in this market is to align closely with a local expert who knows the ins and outs of this market.

Martin Gonzalez · Answer

@Philip Joseph Thanks for the insight. And I'm glad you mention Warner Robins as that is where I grew up and I'm looking into it as well. I wonder how much more that 65K house ended up selling for. It's quite similar here in Utah as well. I saw a fourplex earlier this week go on the market and it received multiple offers the same day, and it was listed at $850k

Have you identified any other areas near central GA with a "new Warner Robins" potential? What about Fort Valley, Byron, and Perry?I'm planning a trip there next month(if I can identify a good realtor and PM that I like) to learn more about the investing scene there.

Philip Joseph · Answer

My issue with Macon is that 3/4th of the city has little to now appreciation.  You can buy a house for $30-$50k and rent it for over $600/mnth.  But, you have to deal with non-paying tenants and lots of damage to your properties.  Then when you want to sell say 10-15 years later, you will find that it is worth exactly what you paid. Still not a big deal if you purchase lots of properties so you can still break even when one or two tenants don't pay.

Warner Robins on the other hand seems to appreciate more and you can get higher rents.  Warner Robins entry point has gone up the past 3 years (unlike Macon), so you will pay a bit more.  Just 2 days ago a house went on the market for $65k.  Within hours there was 6 offers and i was one of only two local investors.  It seems the appeal of Warner Robins is already out.

Martin Gonzalez · Answer

Thank you @Jason C. and @Lee Taylor for the feedback. How have Macon and Warner Robins changed in the last three years? And do you guys know any good realtors and property managers in the area that you recommend?I'm living in Utah and I'm looking to buy my first out-of-state deal in the coming months. Any help will be much appreciated.

Eric Wyche · Answer

Not sure about Macon, but Albany Ga a few miles south of Macon, I may be of some help.

How is the Macon Area?

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