Macon, Ga looking to invest any advice ?

Question

Hi I am new to the bigger pockets forum I listen to the podcast just about every day So

I have been looking at Macon, Ga for the past few months now from what I was told it's the upcoming new Atlanta

Anyone know the area ? & Thoughts on buying there ?  I am looking at doing the Brrr method

Philip Joseph · Answer

Vincent,

I would say invest with caution.  Macon has potential, but there’s significant risk, especially for out of state investors.  First, BRRRRs can be tough because appreciation is slow in Macon.  If you are buying the low end stuff, don’t expect forced equity to work.  Ex, purchase for $30k, renovation cost $70k so you are all in about $110k (includes interest, holding cost, ect).  You try to BRRRR one year later and it appraises for $120k.  This is a real-life example, so be prepared to leave money in the deal.

Second, finding good contractors can be tricky.  Most of the big investors in the area will not share their contractors with just anyone.  And some contractors will do shady work or just take your money and do nothing…Never pay for work in advance and try to buy the materials yourself. If you are using a specific contractor for the first time, I would even suggest paying an inspector to check out the work before making the final payment.

Third, Theft is real!  In some areas, people will steal your materials overnight, and even in broad daylight.  I’ve had a vacant property broken into and one of my subs was robbed at one property.  Macon can be rough, so you need to hirer folks who do lots of work in the area and know how to safe guard your property.

That said, the few properties I have rented cash flow well.  Section 8 pays well in Macon.  But, you still need to vet your tenants, because a bad section 8 tenant can still run your property into the ground.  I personally only flip $200k+ properties in Macon now and only buy rentals in Warner Robins.  Message me if you have specific questions.

Cajun

Alfath Ahmed · Answer

Ohio is actually great for the brrrrr method. I have 28 units here that I bought using the BRRRR method in last 3-4 years. All of them are in A/B class areas.

Jonathan Ghione · Answer

Greetings does anybody know if Macon GA has the same rules for investing in some parts of Ohio

1) -Looking for a city that doesn't have mandatory lead certifications

2) in Ohio but not all but some places make are not allowing you to be an out of state landlord they require to use a local property manager.  Revised Code, specifically Chapter 5323,------- Designate an agent: The owner must designate an in-state agent for service of process.”

3) Trying to avoid places that have mandatory point of sales like they do in Ohio

4) Does anyone have a MAP of investing in Macon, Georgia.

Remington Lyman · Answer

Central Ohio does not have a POS

Garrett Crosby · Answer

Philip's advice is solid and worth taking seriously, especially the theft and contractor points. Those are real risks in lower-priced markets and they can wipe out your projected margins fast if you're not prepared for them.

On the BRRRR angle specifically — Macon is a market where the refinance step is the wildcard. Appreciation is slow, so your ARV has to be driven by recent comps in the exact neighborhood, not by your renovation cost plus expected equity. If the appraisal doesn't come in where you need it, you could end up with money stuck in the deal. That's not fatal but it kills the "recycle your capital" part of BRRRR and slows your ability to do the next deal. Build that uncertainty into your numbers before you commit.

Your electrician background is a real advantage on the cost side and could save you meaningful money on rehabs. That said, being boots on the ground matters a lot in markets like this, especially for the first deal. Feel free to DM if you want to talk through the deal analysis on anything specific.

Philip Joseph · Answer

Great point on appreciation and it is something I've said in other posts.  I've purchased properties for the same price the seller paid 25 years prior  You cannot count on appreciation in Macon.  Forced appreciation is your best bet.  The key is finding the right deal.  The properties advertised for $30k will cash flow after you put another $70k into it, but will only appraise for $100k.  But I purchased a property for $105k in a nicer area, spent another $50k on the renovation, but it then appraised for $200k.  I was able to refinance, get all my money out and still cash flow about $150.  You really need to know what areas to buy in.

Cajun

Vincent Valenti · Answer

@Philip Joseph forgot to say yes to the Macon rei Facebook page

Shuja Ali · Answer

I’ve looked into Macon quite a bit. It definitely has potential, but it’s very neighborhood-specific.

Some areas work well for BRRR if you buy right, but others don’t appraise or rent as strong as people expect.

If you’re considering BRRR, I’d focus heavily on: • actual rent comps (not estimates)

• rehab scope on older homes

• ARVs based on solds, not actives

It can work, just needs careful deal analysis.

Kerlous Tadres · Answer

I’d recommend not buying because of hype. Only buy if the rent today covers the payment and repairs. BRRRR only works if your rehab cost is real, your after-repair value comes from recently sold comps, and you already have a good local contractor and property manager. If the numbers are tight on a “safe” rent and vacancy guess, skip it.

Vincent Valenti · Answer

@Philip Joseph My situation is a lil different at the moment so short long version

I am from Boston, MA me my wife & kids moved down to Hampton, GA 4 yrs back had a property I built in Boston sold when market was great and then came down to GA and brought when the market came down was a win win well I thought so my wife is a teacher and her and my kids are still in Hampton I went back up to Boston financially I make more money up here I have been watching making for about 6-7 months seen a ton of rehabs the arv with the comps looked great I've been eager to get into the Brrr thing but trying to figure out where I get mixed things said about Macon and keeps me from moving forward but at some point I need to pull the trigger

Macon, Ga looking to invest any advice ?

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