14 unit in rural Georgia

6 Replies

This will be my first multifamily and looking for some advice/guidance. Would you purchase a 14 unit consisting of 7 duplex's in rural Georgia?

The numbers look great so far.  Asking price is $320k and units are rented for $500+/- with only 1 vacant at the moment.  Tenants pay electric and owner pays water and garbage at about $900 per month.  The condition of the units are decent. Could use updates but not needed.

My concern is that it's about an hour away from a major city (Columbus, GA). Population growth shows a slight decline since 2010 and the crime rate is below the national average. The city currently has about 850 total residents.

Another concern is finding a good property manager.

Lastly, how you recommend financing this?  What type of lender should I look for?

Thank you in advance.

@Giovanni Pisano yes the numbers do look good to me.

If you don't live in town managing the property could be tough. A town that small may not have a "Property Manager" You may have to rely on someone that lives in the building who is handy for example.

I really don't like the idea that there are only 850 residents. Your building represents about 1.6% of the population. I don't know the area at all at. I am not familiar with the economics of rural areas, but that would scare me away from the deal. 

@Giovanni Pisano , it depends where it is. Columbus is a medium sized city with very little growth. Not a highly appreciating city. However, you mention an hour outside of the city. For this area, that is not close. It’s probably not linked economically. Also, I don’t cate for these low rents. If you’re not going to be a local investor and will do none of the work yourself, your costs can very quickly eliminate any profits. All this said, you’re need to travel there and really understand the market and factors that affect it. It could be a good deal but it needs to be very well maintained or repairs are going to foil any possibility for cash flow. You can DM me for more. 

I would look for financing at a small bank or credit union close to the property. You will have an easier time getting a loan from people that know the area. If you have a hard time with the local bank, chances are the property is not a good investment and they know it. 

Have you moved on or forward with the deal? Be glad to discuss this in further detail and assist in any way. Live in Columbus, GA. Not exactly where this property is located, but closer than you if your still in Pines, FL.

Originally posted by @John Page :

Have you moved on or forward with the deal? Be glad to discuss this in further detail and assist in any way. Live in Columbus, GA. Not exactly where this property is located, but closer than you if your still in Pines, FL.

Hi John,

I have not moved forward.  Would like to hear you out to see what you suggest since you're in Columbus.