All Forum Posts by: Philip Joseph

My issue with Macon is that 3/4th of the city has little to now appreciation.  You can buy a house for $30-$50k and rent it for over $600/mnth.  But, you have to deal with non-paying tenants and lots of damage to your properties.  Then when you want to sell say 10-15 years later, you will find that it is worth exactly what you paid. Still not a big deal if you purchase lots of properties so you can still break even when one or two tenants don't pay.  

Warner Robins on the other hand seems to appreciate more and you can get higher rents.  Warner Robins entry point has gone up the past 3 years (unlike Macon), so you will pay a bit more.  Just 2 days ago a house went on the market for $65k.  Within hours there was 6 offers and i was one of only two local investors.  It seems the appeal of Warner Robins is already out.  

What software or company would you recommend for lead generation?  Please provide any pros and cons.  Thanks!

Cajun

@Gp G.

 Appreciation in Macon is almost nonexistent. You can get many properties for under $50,000 in Macon and they should cash flow, but you have to deal with high turnover and high crime. The only place I would consider investing is near Mercer University or Down Town

Augusta appreciates better, and should produce higher rents, but will have a higher entry point. Don’t really know any areas that I would recommend with an entry point under $50k.

Columbus is in between those two. Bottom line, the lower the entry point the higher the risk.

Cajun

 Your post popped up in my keyword alert.  I will point out that Macon is a cash flow market, but appreciation is almost non-existent.  I recently purchased a property for $45k that the previous owner purchased for $40k 10 years ago.  But, I can rent that property for $750/month with no issues.  I see investors trying to flip in Macon and that can be hit-or-miss.  Flipping in Macon (only in certain neighborhoods) will mean holding the property longer and yielding less profits.  That is my observation on Macon the last 6 years.  

I'm in Warner Robins and have several investment properties.  Warner Robins is a good area and has become very popular for investors the past 3-4 years.  Good single family investment properties are usually gone in a few weeks.  

I've used this company on several properties in WR, GA.

Solomon Edwards
Chosen One Home inspection, LLC

Do you only manage residential or do manage commercial as well?  

Cajun

BP,

I have folks that have expressed interest in investing in my projects, but I am having trouble figuring out how to structure the agreement since I like to buy and hold. Here’s an example of one the deals.

3/1 for $60k. I will need to put in a little money, maybe $10k, but it will rent for $900. ARV will not go up significantly after repairs. How do I structure an agreement with an investor so that they will see value in funding this for at least 6 months, at which point I can refinance and pay them back?

Philip

If you guys are not doing it, then let's get it going again.  I have several folks from Warner Robins that will come.

I was initially going to partner on a flip with a 60/40 split of the profits. The partner would buy the property and i would fund and lead the rehab effort. I now really want to BRRR the property...Is there a way to structure this partnership so the other investor would still want in? Is paying him 40% of the difference between our expenses and the ARV the only fair option (which is roughly what he would have made if we flipped the property)?