Montgomery Rental Market

[Cristian Ramos]

Hi Folks

A buddy of mine did pretty well investing in rental properties last year in Montgomery. I can definitely see why, employment driven predominantly by Government/Education, low property values, low taxes, and good rental rates - you can definitely achieve the 1% rule. I would also point out that investors tend to focus on other markets a little more (Kansas City, Cincinnati, etc.) which should make picking properties relatively easier. 

I've been looking at 36109 and 36117 zip codes, but it seems that there's bifurcation within the zip codes (i.e. Forest Hills vs. Pecan Grove, etc.). I'm looking to connect with individuals here, but also keep a discussion here on Montgomery as everyone is really interested in Hicksville. 

Strategy: I'm really focused on maximizing the returns of each property. I can get to $300 of cash after expenses (mortgage/interest, taxes, insurance, and property manager fee) - this can lead to 10-15% cap rates. But I recognize that you need to factor in capex, property up-keep, and vacancy. Is the math faulty?

[Michael Atkins]

@Cristian Ramos I'm a agent & pm in Montgomery. Your plan and math is very feasible. You should be fine with the areas you are looking in. It's hard to go wrong with 3 bed 2 bath brick ranch style homes. The best deals generally need some amount of repair. In some situations you might look into going with some higher-end finishes to marginally increase your rent & probably attract better tenants from the pool of possible tenants. Spending a couple hundred bucks on upgrading light fixtures can go along way.