Intro and investment summary so far (3 of 5)

[Lars Hasseler]

After six SFRs between Memphis (TN) and Gary (IN), I discovered Birmingham, AL. Its extremely low property taxes and decent rent-to-price ratio spurred me to buy three properties there. It's been interesting to say the least. I changed property managers after one year. I'll name them not to tarnish reputations but simply to detail my experience. Under management with GK Houses, repairs took weeks if they ever happened, and I had two of three leases break in the same week. Catastrophic issues (kitchen ceiling caved in on one) combined with no repairs in sight created an impossible situation for renters. I let two move out, breaking their lease and keeping their security deposits. Not everyone would have done the same, but it was exclusively the property manager's fault. I changed to AHI and have had great results since. This summer I spent over $10,000 repairing the three of them.

That reminds me, I purchased all 11 SFRs through Roofstock.com. Great company in a lot of ways. You can view inspections before buying, they have minimal closing costs, and they are very responsive. One down side, they sometimes wildly underestimate repair costs. That was an adjustment for money allocated, as I quickly learned to keep more on hand that I had initially planned.

Same lender, Northpointe.

[John Patton]

@Christopher Lynch

I have been an investor in Birmingham since 2007. Always follow the schools. Good customers follow the schools. That will not be cheap. Stay away from Birmingham city schools unless you personally don’t know the areas.

Good luck.