All Forum Posts by: Chad Lopes

Hey Forrest, I would recommend a little of both. First, figure out exactly what end buyers are looking for. For example, you can flip a 3/2 much easier than a 3/1, so if you find a 3/2 that hits the sweet spot, flip it. It it fits better in your long term portfolio, then hold onto it. Sometimes, you may get in at a price that is to high to justify a flip but may be a great long-term hold.

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@Jay Hinrichs

Thanks for the complement. I've done my best to learn the ins and outs of Birmingham. It's a unique market and can literally be defined street by street which makes it hard for an out of towner. You can eliminate some of the variability by going into the B to B- neighborhoods but then you start running up against some stiff competition from local turnkey guys and hedge fund types. I looked at a house yesterday and there were 4 other parties there at the same time. The inventory is just light right now. Of course I am trying to find fixer uppers for my portfolio. If you are looking for turnkey there are people like Jays guys who do a nice job, but there are also some I would avoid. There aren't the behemoths like MemphisInvest here because the market is not large enough. The most important thing to know is that this is a cash flow town, don't expect appreciation. When you are dealing with cash flow you have to manage the properties lean and mean because you don't have a big appreciation pay day down the road.

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there are a number of factors to think about, the primary one being the length of time you plan on holding. If short, go with 7-1. If longer go fixed all day long. The peace of mind of never having to worry about rates again is worth its weight in gold.

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Joel, happy to help as well. Just PM me and we can connect over the phone.

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Generally if you are an owner in the property you can avoid some of the property mgmt laws and regs. That's a general comment. I would also consider contacting your local real estate commission as they may have lawyers on staff who can answer that question.

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the rent to price looks good. I would try to find out how much deferred maintenance there is beyond the roof (HVAC, etc) and whether the house is going to need a major cosmetic lift after these tenants. You could afford to put 5-10k in the house and still make it a good investment. Also check zillow to see what market rents are around the area. After 7 yrs a market can change.

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also, be careful about neighborhoods. You really need to understand the market here. It can be different street by street, particularly in East Lake and similar C and D neighborhoods.

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