What to Look for When Buying an Investment Property in Auburn or Opelika

by Greg Powell

Real estate investing can be a powerful way to build long-term wealth - but buying the right investment property is key. Whether you're eyeing student rentals near Auburn University or multi-family properties in Opelika, here’s what savvy investors consider before signing on the dotted line.

1. Return on Investment (ROI)

ROI is your bottom line - it measures how profitable your investment is compared to your costs. To estimate it:

Add up your expected net annual income (rent minus expenses).
Divide it by your total investment (purchase price + renovations, etc.).

Aim for at least a 7-1 0% ROI to make the deal worthwhile. A good real estate agent can help you run these numbers and spot opportunities with strong upside.

2. Cash Flow

Positive cash flow means your rental income exceeds expenses like mortgage, taxes, insurance, and maintenance. It's what keeps your investment afloat month to month.

Look for properties with:

Competitive rent potential
Low vacancy risk
Reasonable operating costs

Pro tip: Don't forget to budget for property management if you don't plan to handle the day-to-day yourself.

3. Location, Location, Location

In Auburn and Opelika, location is everything - especially if you’re investing in student housing or long-term rentals. Consider:

Proximity to Auburn University or local employers
Access to Tiger Transit, parks, and shopping
Neighborhood safety and appeal
Future development plans or zoning changes

High-demand areas mean less vacancy and higher rent potential.

4. Property Appreciation Potential

Often overlooked, while cash flow handles short-term gains, appreciation builds long-term wealth. Look at:

Historical home values in the area
Local economic and job growth
School district reputation
Infrastructure or city improvement projects

The Auburn-Opelika market has seen steady growth, making it a solid place to bank on appreciation.

5. Condition and Renovation Needs

Fixer-uppers can offer great returns - but only if the numbers make sense. Consider:

The cost and timeline for repairs
Local contractor availability
Whether renovations will raise rent or value

Always get a professional inspection and estimate before committing.

6. Tenant Demand

Evaluate your target market. Are you renting to students, families, or professionals? Tailor your property choice accordingly. High tenant demand means lower vacancy, faster leases, and more stability.

Final Thoughts

Buying an investment property is more than just a financial move - it’s a strategy. By focusing on ROI, cash flow, location, and future value, you’ll put yourself in a position to build real wealth over time.

Thinking about buying an investment property in Auburn or Opelika? Let’s run the numbers together and find the right fit for your goals.

If you are looking at investing in Auburn student housing, check out my previous blog post here:gregsellsauburn.com/blog/What-to-Look-for-When-Buying-Student-Housing-Near-Auburn-University