First Buy and Hold Question

6 Replies

Hey BP, looking to get my first buy and hold property. I live in Locust Grove, GA, maybe 45 minutes south of Atlanta. For my rental property, I think I’d feel more comfortable getting something closer to me and my partner. LG has lots of rural parts and a population of maybe 5,000, but it’s a good area and it’s certainly growing. My question is- Is it a bad idea for me to start in an area because it’s close to me, or should I be more advantageous and go invest further away for a better pool of deals?

@Caleb Anderson Depends on your comfort level, but 45 minutes seems very manageable. Would you plan to manage the property yourself? If the rents and rental demand in Locust Grove are stable and you can cash flow, it would surely be simpler to manage/oversee.

It also depends on what your desired ROI is - as long as you run realistic numbers before making any decisions, it seems that either course of action can work for you.

@Marshall Leipprandt thanks! I do work 50-55 hours a week at my job now, so my strategy was to have it closer with a solid management company in the beginning. I just wanted some feedback on how useful having the property in proximity of my own house was or was not.

starting local gives you the advantage of knowing the market.  fewer deals can also mean less competition.  I live in a town of 10,000 people.  It took me four months of looking to get my latest deal under contract because there aren't many properties that meet my criteria in my town but when It did come on the market there wasn't much competition and I got it under contract without having to get in a bidding war with 20 other investors as might be the case in bigger markets.

@Caleb Anderson don’t be scared to invest here in LG man! Money is money. All of these distribution centers being developed here are going to keep the population going up in this area and will make for a good rental market. I have a mentor that has a lot of rentals in LG.