Looking to purchase my first rental property in Harvest, AL

[Erin Page]

I am new to real estate investing. I have been focused on the Bigger Pockets podcasts and books while saving for my first downpayment. I am finally ready to begin the next phase! 

I am just beginning to attempt to analyze deals. I would like to start networking in the area. 

My market is going to be the Toney/Harvest Alabama area just outside of Huntsville. I am looking for long term rentals that have an ARV of less than 100k.

Does anyone else have experience in this market? 

What tools are you guys using to determine market value and rental income?

[Michael Weir]

I own three properties in Harvest, AL. They are all 3 bedroom, 2 bath properties (1200sqft - 1500sqft). I currently have them rented out for $900, $950, $975. To determine market value and monthly rent, I just use zillow. I periodically browse zillow: for sale, recently sold, and for rent to get a feel of the market. 

Harvest (like the rest of the Huntsville area) in the last couple of years has experienced very nice appreciation in the past few years. According to zillow, the 35749 area code has increased 10% in the past year. To find properties with an ARV of less than 100k, you will need to take a more active approach than I. The last property I purchased was in 2018. It was sold via the HUD website. I found it because it was next door to one of my other properties I noticed the foreclosure notices and kept my eye out.

Also beware that rental prices depend on location, neighborhood, and house. When running your numbers make sure you find comparables that are similar neighborhoods and houses. Harvest has at least three different neighborhoods:

* Rural Neighborhoods
* Neighborhoods with the cookie-cutter vinyl-siding homes crammed together (what I own)
* Neighborhoods with more the custom home feel.

Homes in each rent for different amounts. Just make sure when analyzing you are using the correct comps