Investing in Savannah GA

[Rebecca Fluhr]

Hello everyone, my husband and I are looking to buy our first investment property. We are looking for a multifamily that generates cash flow. I currently live in Mass. and its just too expensive for us here. We were looking at Savannah GA and wanted to get some opinions from experienced investors? Or if there are any other markets we should be looking at? Any advice is much appreciated. Thank you rebecca 

[Sidney Reed]

I was a landlord there for about 6 years (bought my first house hack at age 22!)  There’s a few things I can give tips on from my experience:

- The average income is lower, so it was hard to get in your typical renters who want to do a long term lease; nearly every one of my renters paid late despite credit checks and employment verification. Not an issue if you are firm on late fees. Though, I did have some renters pack up and run away overnight, so be prepared to be friends with the local police to issue warrants. It sounds stressful but it’s not too bad. 

- There’s nature to contend with (mold, termites, hurricanes, flooding, sun damage). I had a $165,000 new home built because it was cheaper with a 10-yr warranty rather than deal with a house flip from 1890. Never skip the termite inspection on anything older than 6 months.

- You will need to be very careful where you buy. I house hacked as a college student and when I’d drive to class, one wrong turn could take me from a neighborhood of plantation mansions to a very bad situation. Always double check with the locals on what street you’re buying on.

- It’s a college town. My tactic was to rent to college students each year. Very high turnover but much better chances of them actually paying rent.
- Airbnb strategy is very difficult. There’s mostly retirees and students living in the city, and certain seasons are better to visit. Airbnb did not work well for my fellow investors due to Savannah’s hotel laws and from the tourist seasons in general. 

- It’s a gorgeous city and I’m looking at investing again soon, perhaps in multifamily. As an alumni of the art school there, I can say it’s only going to grow in population but probably not in equity. If you can handle the seasonal flow and not expect long term tenants, and you have a solid property manager (mine was a superstar), then it’s a good place to invest. 

Let me know if you have more questions. I’m happy to help!