What’s the best way to invest in real estate in Hinesville, Georgia, the home of Fort Stewart?
Are you interested in investing in Hinesville, GA? If yes, then this article will help you out. The first thing is to understand the basics of real estate investing are the same across most of the USA. If you haven’t read our guide to general real estate investing, review that first.
Specialties of Hinesville
The main difference between Hinesville and other places is the yields are very high, often with gross yields above 10%. This means that the gross rent paid here is a high fraction of cost of each house. If you want to grow your money fast, this is an attractive area! Most of the growth will come from rental income though, and not capital appreciation. Because the city is surrounded with so much farmland and developable land, house prices can’t increase that much because supply will increase to match demand if prices rise even a little bit.
Military Presence in Hinesville
In addition, there is a large military presence here. Hinesville is the home of Fort Stewart, which provides a strong demand for rentals.
A key item to understand in investing in Hinesville, GA is that a large fraction of the residents are in the military and have a Basic Allowance for Housing (BAH). This means that they are basically given a payment that covers their rent. This is great for you as a real estate investor since it means that there is always a large demand for rentals here.
The military also means that the cost of living is slightly higher than elsewhere in the country. This is due to several factors, such as the fact that the military controls much of what is sold on base and so can force retailers to raise prices. In addition, the large number of military personnel and their families means that there is a strong demand for certain goods, such as child care.
Downside: Small Town with Less Competitive Banks
One downside of Hinesville though is that the city is small, meaning there is only a handful of banks. This means it’s unlikely that you will get a very competitive interest rate on your loan.
Buying Foreclosures and REO
Finally, the Hinesville GA single family market is influence by VA loans that require 0% down. This leads to many military members buying houses, and then abandoning the houses when housing prices fall by even a bit. As an outside investor, you’ll have the opportunity to buy these as short sales, foreclosures, or Real-Estate Owned (REO or OREO) by banks.
Buying these REO houses has special properties but also can yield large rewards. The best way to think about investing in REO is that it’s like buying a house directly from the bank. You can fix it up and sell it for more than you bought it for. Since there aren’t many other homeowners competing with you to buy the house, you can get a real discount on the house!
Other Characteristics of Hinesville
Some other special properties of Hinesville include:
1. Hinesville is a great place to buy a house if you have a family.
2. The military presence means that there is a large demand for houses in good condition.
3. Hinesville has a higher than average rate of married couples, especially families.
4. There are several gated communities in Hinesville, which are very profitable to invest in.
5. The large amount of married couples and families means that there is a strong demand for child care.
6. There are several military retirees that move here, which increases the demand for houses.
7. The large number of married couples and families means that there is a strong demand for schools.
8. The large number of married couples and families means that there is a strong demand for churches.
And here are a few other tips for investing in the Hinesville, GA area:
1. Consider getting financing from outside the city, where there are more banks.
2. Consider whether you’re okay investing in units with very low per-unit price.
3. Avoid investing in houses that are in less desirable areas.
4. Considering learning how to do a bit of redevelopment if you’re buying REO or foreclosures.