Fixer upper - Small Towns in Georgia

[Edi C.]

Hi, 

I’m curious about low-priced properties in small towns in Georgia. Some of these towns even appears in websites as “Most beautiful towns in Georgia” and, as an indicator, I see some Airbnb offer there. I'm talking about Dublin, Brunswick, Rome, Valdosta, Lagrange, Thomasville, etc... Better towns, higher prices. 

I’ve been doing some research and I see houses in very bad condition, needing a full structural rehab most likely. Others are just old, not updated for long, some broken stuff inside and no inhabited. Substantial amount of labor can be done by myself, needing a local handyman for some help here and there. I’m aware that a non-cosmetic trouble may arise when rehabbing. But overall project and costs doesn’t seem overwhelming.

With some research deals can be closed at 16-22K. Low tax assessment, low insurance, low closing costs. I assume an extra 20K rehabbing and finishing things up. All cash. Then, rent the unit and refi to conventional to pull the initial cash amount and maybe there's room to go for an extra 10-15k (not optimistic with the appraisal though). Numbers seems to work fine. Usually comp properties in good shape are listed somewhere between 65-80K. As I mention, depending on location, condition, current owner, etc... it widely varies. But looking for a scenario like this.


BUT some of these properties are stuck in MLS for a long time. Is there enough market demand or I'll end up with a paid&rehabbed home for me to vacation in?

Am I missing something? Any advice?

Thanks!

[Jeff Kehl]

I can speak for those properties in Rome. They are generally terrible investments because they aren't in good areas. That causes 2 big problems. First is the local appraiser s know it and they won't appraise high enough to get your money back out. Second the kinds of tenants you get in those neighborhoods are bad. High turnover and they'll tear the property up.

One final point, the houses tend to be older so once you pull a permit your usually doing a lot of extra work . Pretty much plan on redoing the electric plumbing and HVAC.