Warner Robins Rent Price Trend

[Al D.]

I am curious about the LTR price trend in Warner Robins in the last year or so and for the foreseeable future:

Have new builds, like The Cottages on Bass Rd, for example, affected rents, in your experience?

Do you know whether many more new builds for likely rental inventory may still be coming?

Is the market likely to get oversupplied with rentals, at least in the short term?

Any thoughts on the desirability of the area S of Watson, N of Russell and E of Corder to the base?

Thank you.

[Philip Joseph]

So I’ve noticed more and more rentals staying on the market lately. Prices are holding firm right now, but there’s a huge surplus of apartments about to hit the market. Those Cottages you mentioned, apartments off Russel Prkwy near the base, Apartment on 96 near the I-75, townhomes on Feagan Mill and Houston Lake, etc. In fact, I got a call a few weeks ago from someone trying to get me to invest in those 300 cottages. I will tell you what I told him. I think you are playing a dangerous game if you sink a significant amount of money into new construction in Warner Robins in 2023. It’s very high risk to buy right now with all the new multifamily units coming on line. I don’t see significant growth in the city right now. The AF cancelled the Joint Star program, reducing the number of jobs on the base a bit.

Warner Robins is still a good investment, but you need to buy deep. For multifamily (or those Cottages), stay away from anything with less than a 5% CAP rate…You will not cash flow, and the appreciation has slowed significantly. I refinanced two properties recently and they appraised way less than expected.

I have a few properties in the areas you mentioned and they do well as rental. I’ve had those for several years and got them for a good price. North of Watson and East of Houston Rd is the toughest area to rent right now, but even in that area, if you buy right it will cash flow. This is just my option. I’ve been investing in the area since 2015 and have just over 40 units.

Cajun