I have been doing my homework in the Clayton County area and here is what I have found:
1) There is A TON of inventory
2) Prices seem to be not going too crazy in this "sellers market"
3) Neighboring Fayette County has about 1% of the inventory that Clayton Co does
Question to Ga investors - Would you target this market? And if so, does anybody have PM that they use for this area?
Second Question - Do you think because of the schools in Fayette County that I should just wait for Fayette deals knowing that renting there would be a non-issue and you can raise the rates dramatically?
Any response from people that have invested in this area would be greatly appreciated.
Not a fan of that area. There is a reason why one area has very low inventory versus the other. Look at demographics, crime,school systems, economic development departments, planning commission, health of the county with budgets,etc.
I like to invest in growing and safe areas. Initial cash flow might be less but appreciation and rent growth over time usually is better. The low end areas that are doing OKAY right now at peak cycle when a down turn happens generally move to a D to F area as people lose their jobs or they are cut back. Vacant houses increase and crime which pulls down the area more etc. The low end areas are basically cash flow only plays unless the area over time is one of the rare that gentrifies.
Find the best area you can buy in with strong growth and try to rehab something. That is a way to improve your all in rent to purchase ratio.
I am not a speculator.
Thanks for the follow up guys. That's the conclusion I was headed to. Just glad to hear some other people have the same findings. The biggest red flag for me was the sheer number of houses for sale.
@rcmorris how familiar are you with Lake City, Clayton County? There’s a SFH across the street from student housing called Laker Village. It appears the property, located in Harper Mill subdivision, is less than a mile from Clayton State. It’s a 2 bed/1 bath. My idea is to rent per room as a form of student housing to see a greater return. A few risks with renting to college student but I’m still researching it.
Hey, I haven't invested in Clayton county, but I do have a SFH listed in Jonesboro and the neighborhoods there are more stable with lower crime rates. That may be a good pocket to check out as well.
We bought a turnkey in Clayton County off of West Fayetteville. Lived in it for a couple of years and now we’re prepping to rent it out. We’re actually getting nearly double the mortgage on the property and haven’t had many issues so far. However, I do agree that this side of town requires more precaution. Do your due diligence and you should be fine.