Huntsville Rental Stategy

[Zac Henderson]

I am looking for and analyzing properties in northern Alabama - Huntsville, Decatur, and surrounding areas for rentals and/or BRRRR. I have found several that are close to fitting +/- The 1% rule. This will be my first property so it would be nice to work in a solid buffer as far as cash flow goes to reduce the risk (or at least be compensated for the extra risk).

My initial strategy was to just do regular long-term rentals with one year lease terms. But, I spoke with another investor in the area that prefers short term, Airbnb rentals and is finding a lot of success doing that.

So, this opened the door to other questions and other strategies. 

The two that are most interesting to me now are renting by the room or leasing to own.

In y’alls experience, 1) what market factors lead to success in either of these strategies? 2) what are some unique challenges that arise when using these strategies?, and 3) if you also invest in Huntsville, do you feel like that this is a good market to utilize either one of these strategies?