Huntsville/Madison, AL Rental Prospects and Growth

[Tom Leiter]

Hey, first of all want to say thank you to everyone who contributes on here, it makes starting out a little bit easier. We likely have one, maybe two military moves left before retirement and I think the Madison, AL area is going to be that location. With that being said, we have some money in the 100K to 150K range that I want to put towards rental properties in what I believe to be a strong and stable market. Although Huntsville has seen it's share of growth, it seems like the private and public sector has some legs to keep moving. Populations that include the FBI HQs, Redstone, and NASA footprint followed by private sector ventures like Toyota, Blue Origin, and Facebook seem to be fueling said growth. Looking to move forward in early next spring to posture for summer clients. I plan on doing the property management myself, we are located within a couple hours drive in Georgia and trying to automate the rest with some local assistance.

A couple questions I have if people are familiar with the area:

1.What are your thoughts on long-term growth and rental prospects for the area?

2.Have not seen many MFR properties online, thinking about focusing more on SFR. Is that a mistake?

3.Any lenders or reality agencies that people recommend from past experience?

4.If looking to purchase 3 to 4 properties, what loan vehicle would you recommend and why?

This is kind of an outlier, but not too far away, what is everyone's thoughts on Gatlinburg, TN or Lake Gunnersville for STR opportunities?

Thanks again, stay safe everyone!

[Peter McDonough]

1) They are terrific.  Probably 5-10% appreciation for the next 3-5 years.
2) Not a mistake.  The 2-4 stock in Huntsville is all old, in terrible areas, or in an area filled with sub-par PMs not pushing rents.
3) Yes, send me a PM and I'll hook you up with a terrific lender and realtor.
4) Conventional residential financing, without a doubt.  20% down