Buying a home in Augusta can be an extremely lucrative business

If you’re the member of your social circle who was blessed with the entrepreneurial gene, or never met a get-rich scheme you didn’t like, listen up. Buying a home near the famed Augusta National could skyrocket your bank account.

If you weren’t aware, Augusta, Georgia, isn’t exactly the most desirable city in the United States outside of the 120-acre vernal paradise that hosts the Masters. As such, it’s not surprising that the average home price in Augusta is $90,000, with an annual rate of appreciation in the one to two percent range. Investing in property near the home of the Masters may not be the wisest move from the standpoint of increasing property values, however, it could be rewarding if you adopt the following model.

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Buy a place, rent it out to a tenant 11-plus months per year, then rent it out to golf fans during Masters week. Now, this would obviously be complicated by the fact that tenants would be occupying one’s rental property during the month of April. But hey, send them on a vacation, and you’ll still boost your bottom line.

Maybe it’s a pipe dream, but consider this example put together by Jeff Ritter. Ritter spoke with Mary Lewis, a mortgage loan officer for South State Bank in Augusta. He assumed the property in question was purchased for a 20% down payment with a 30-year fixed mortgage at a 4.5% interest rate.

Here’s the property: 1208 Oakdale Rd.

The asking price is $120,000 for this three bedroom, two bathroom house, and it’s about one mile from Augusta National. The estimated monthly rent including taxes and insurance: $662.

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And reportedly, one could rent the brick ranch bungalow out for around $900 per month. But here’s the coup de grace. The estimated amount you could rent the place out for during Masters week? $5,000. $5,000! One of the other properties is asking for a whopping $45,000 for the week. That may be stretching it but the fact that that’s a possibility is quite outstanding.

So under the “rent it out and send your tenants on vacation” plan, you’d be grossing $4-5K per year…while paying off the mortgage. Not the worst investment in the world. Of course, you could rent the place out, send the tenant on vacation during Masters week and have your very own free rental in the shadows of Augusta’s pines for the week. That might be the best idea yet.

The Masters Vegas odds are in:

*While you’re making money, might as well spend some of it too.

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