Mobile, AL Newbie

[Jacqueline Brown]

Hi all, I decided the level of my lurking within the past month on BP was borderline "peeping Tom" so I've decided to introduce myself. I'm Jacqueline, currently residing in Mobile, Alabama where I just recently purchased a foreclosed home in need of a little rehabbing. It is a live-in rehab and I was fortunate enough to bring my roommate with me and have someone else pay 75% of my mortgage. So far so good. New floors, new s.s. appliances, updated fixtures, and a lot of sweat equity. I'm still getting things exactly as I want since this is my home and so far, it's been a fun process. 

My goal is 1 of 2 options...selling it in 4-5 years, if and only if the market picks up well enough to pocket a decent profit, or hold and rent. Currently, I would get about $1000-1100 per month. It's located in a neighborhood that sells the most volume of homes within this city, so here's to luck on appreciation! 

Right now, I'm laying out my plans to purchase more property on a smaller scale. I'm fishing in the areas of SFR 2/1s or 2/2s in the 30k-50k range. There is a need for concern of tenant caliber, especially in many of Mobile's areas, so this is where I'm debating in my head and reading as much as I can on BP. Do I initially buy 2 properties in my range or buy 1 nicer home with a better likelihood of long term tenant potential? The question is mostly rhetorical, but I'm eager for more education from all of you. I've read that cash flow is likely to be larger with more smaller units, but I know situations can be case by case.

Here's to jumping in! These forums are great, and I look forward to getting to know you!

[Paul Timmins]

@Jacqueline Brown 

Welcome. Fill in the foundation below.

Check out the Start Here page http://www.biggerpockets.com/starthere

Check out BiggerPockets Ultimate Beginner's Guide - A fantastic free book that walks through many of the key topics of real estate investing.

Check out the free BiggerPockets Podcast - A weekly podcast with interviews and a ton of great advice. And you get the benefit of having over 70 past ones to catch up on.

Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and rehabbers.

Two Great reads, I bought both J. Scott The Book on Flipping Houses,The Book on Estimating ReHab Costshttp://www.biggerpockets.com/flippingbook

To find out about an area go to IREM.org search for ARM certified property managers. Call 5 ask them what parts of the city they like/dislike and why. Ask them what they see expenses running per category per unit. What do they see them selling for per unit, what is the market occupancy rate. What are the market rents? Ask them if they know anything coming up for sale. Great way to pick up some good info and possibly a deal.

You might consider Niche or Specialized Housing like student housing. Rents can be 2-4 times more. Remember you don't have to own a property to control it.

Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over

http://www.biggerpockets.com/files/user/brandonatbp/file/real-estate-rewind-a-biggerpockets-community-book

Good Luck

Paul