All Forum Posts by: Philip Joseph

Hi Alesha!  I'm at almost 40 properties (not doors) and I can tell you the anxiety and fear will never totally go away.  Once you've analyzed enough properties within your established buy box (make sure you have a buy box), the anxiety will start to decrease, but will never totally go away.  To help reduce the feeling of starting over every time, take some time to document everything you do from finding a deal to fixing up the property to vetting property managers or tenants (depending on if you will self manage).  This will help you establish repeatable processes, which will reduce your anxiety.  

Also, if you wish to scale faster, look for opportunities to purchase portfolios or small multi-family properties.  It takes the same amount of work to purchase one single family property as it does to purchase a portfolio.  Now you may have more work getting all the properties rent ready, but if you've documented your process and identified your contractors, you should not have a problem.

Good luck, and reach out if you have any questions

Cajun

 @Everlene Smith have you attended the meet up in Warner Robins?  It's on Tuesday's at 12

Whenever I used Hard money, I was required to provide them a list of all repairs that would be performed. They did not require a list of every fixture i will replace, but it should have all the major items broken down by labor and material. i.e Kitchen cabinets: $4,800, installation: $1,200. Join the Macon REI facebook page and check out all the previous questions...You will find several highly recommended contractors. Also, since you are only an hour from Macon, drive down and meet the contractors and possibly walk the property with one or two of them.

Cajun  

 Please put boots on the ground here in Macon and Warner Robins.  You will find many cheap properties advertised online, but they will need significant work.  And some areas will not draw the same rent as others.  By driving the area, you will be able to determine if it's an area you would want to live in.  Good luck!

Cajun

You will need to be more specific in where you are looking. Anything in North Warner Robins will rent less than homes in the Houston county high school and Veterans High school districts. Most of the properties i see advertised on FB or on the MLS are priced high. And the market current has many properties in North WR, which most people with money do not want to live.

To your second question, most landlords don't sell non-distressed properties. The only reason their selling is because they can no longer cash flow, the property has many CAP X expenses coming due or bad tenants. I've purchased many properties and immediately had to raise rents. Most tenants in these places can't pay the current rate, so they will either move, you will have to ask for a lower than current market rate, or you will need to evict them. none of the options are fun, but that's how you get deals...By solving other peoples problems.

Cajun

I have properties in Macon, Warner Robins and Fort Valley.  Macon is the highest risk of all the areas, but also offers the lowest point of entry.  Warner  Robins offers good cash flow and even appreciation (if you buy in the right area).  I can still hit the 1% rule.  Ex. I purchased a property earlier this year for $60k, spent $28k on the rehab and it rents for $1400.  

Cajun  

Can you also do significant sheetrock work? 

Are you in the middle GA and Macon investor groups on FB?  If so, they're many good GC recommendations there.  I do all my own GC work and will help some out-of-state/area investors, but I focus on Warner Robins, Fort Valley and south Macon around Hartley Bridge...I stay away from the rough areas.

Cajun  

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

So I will take a stab at this one.  I have 26 rentals in the middle GA area and I currently have 4 rehabs going on simultaneously. I am always open to talking about how I'm getting funding and finding my deals.  

@Felipe Rivera, I went to high school in Inglewood and college at Northridge before joining the military and ultimately ending up in GA.  If you are looking for cash flow, Macon is your place.  If you want a turnkey rental, message me, as I am trying to off-load on of my Macon SFRs.  Macon does have some drawbacks though.

@Esther C., your numbers make sense. But it's exactly what David Greene warns about. You will cash flow, but unless you are buying in the better areas of Macon, you will have high turnover, lots of maintenance costs and little to know appreciation. I challenge you to look at the sales data in the neighborhoods of the houses you own...Most current ARVs are about the same as when they sold 30 years ago. I'm not saying don't buy (I have one SFR by the Coliseum that cash flows well), I'm just saying don't expect game changing wealth from them.

@Shannon Smith Anything you can get around Bass Rd and Wesleyan at a good price will be a good buy.  It might not cash flow as well, but it will appreciate more.  Properties by the lakes and Hartley Bridge also do well.  In Warner Robins, stay in the Houston County high and Veterans high school districts if you want appreciation and some cash flow.  If you want cash flow, buy in the Northside and Warner Robins school districts (less appreciation).  Warner Robins has some rough areas, but overall, a safer investment (like you said) and has higher rents when compared to Macon.  This is just my opinion from buying in the area.  

Cajun