Considering Out of State Investing in Huntsville - Interested in Networking

[David Cherkowsky]

Hi All,

I am new to real estate investing and am considering investing out of state. I live in the Washington DC area and it seems difficult to find cash flowing properties here. One area I am considering for OOS investing is Huntsville Alabama. It seems like Huntsville has a nice combination of cashflow and potential appreciation.

I'd be interested in hearing from folks more familiar with the area on the general view of the city in 2024, things to look out for, things to avoid, etc. I was planning on focusing on small multifamily properties (duplexes, triplexes, and quadplexes), but I'd be interested in hearing people's' thoughts on the best investment type for the area.

Thank you for your time.

[Michael S.]

@David Cherkowsky - first off, I can't argue with the idea of investing in your own market, as noted above by the other posts - that is obviously what I do.  

As for Huntsville, it is tough to find deals right now that work.  A/B class are going to be negative cash flow unless you can find an amazing off market deal and/or put over 30% down with a 30 year note.  Even C/D class that cash flow decently are harder to find now.  

Several years ago, you could find a rough house in 35810, 35811, 35816, or 35805 for less than 100 a square foot, rehab it, and rent it for cash flow. Now, houses in those zips that need work are 150+ per square foot on the MLS, and even through some of the wholesalers.

Duplexes/Tri/Quads are not common here, and typically in rough areas.  But I would not recommend MF right now - they have overbuilt new MF here in Huntsville, and vacancy rate in MF is becoming problematic. 

Hence, you may be better off staying local.

We have probably 10 investors for every deal in this area right now.  No joke.  

Good luck.