In contract on my first out of state investment- Alabama

[Sunny D.]

Hello BPers

I just got into contract on my first out of state SFH in Hoover (Deer Valley Sub division- zip code 35226). I don't consider this a deal (multiple offers above ask) and was a traditional MLS purchase. While I have many doubts if this was the right strategy (vs. going for B/C neighborhoods), I plan to go fwd and close on this as my research made me aware of both the pros and cons of investing in Hoover despite the lower returns from cash flow point of view.

Purchase price: 174K , 20-25% down payment, traditional financing (approx 4.625% APR 0 pts 30 yr fixed)

Rent : ~1500 PM

I preferred the stability and the higher quality tenants for my first purchase. It is a new home 2004 built and am expecting min cap-ex for the next 5 yrs (inspection pending and have a contingency on it). I liked the fact that Hoover has local home purchasers rather than needing a investor to exit my purchase. Once I get familiar will branch to B areas.

Can others suggest what else I can do to make this work?

I have realized that property management is expensive in Alabama though the work to find a tenant and maintain a A neighborhood property is lesser, I may have to shell the normal (10% monthly and 1 month finder fee). 

Are there suggestions on how I can keep my costs low esp. on PM side and other things to look for in terms of the contract. 

Thanks