All Forum Posts by: Hunter Terryn

Had a networking meeting with Marla French from Timberline Inspections here in Alabama, and wanted to share a few nuggets from our convo...

5 Biggest things to look out for:

1. Structure - Bham's landscape is not flat. We've got a lot of elevation, somewhere between big hills and small mountains. That means houses built on hills! A solid foundation is key here, and even strong ones can shift overtime with the landscape. Marla looks for cracks in the foundation and for the piers to be in good shape. 

2. HVAC - One of the more obvious things to look out for but really anything past 10 years is going to need replaced soon in this heat. Also, something that comes up often is the gas system being improperly vented. This will always show up as a red flag on the report, and can be an expensive fix depending on age of the home. 

3. Roof - Something that comes up a lot is the area around chimneys (many homes with fireplaces here), where rain water isn't being diverted properly. The flashing should be installed appropriately to avoid any leaks/damage.

4. Moisture - Did you know, on average it rains 28 out of 31 days in July every year in Bham?? And when it isn't raining, it's humid. One of the most important things to look out for on an inspection is moisture. We look for a dry crawl space, vapor barriers, and windows/doors that seal completely. Moisture brings mold/mildew, mold/mildew destroys wood. Which brings us to...

5. Termites - According to Marla, a termite inspection is an ABSOLUTE MUST. The typical landscape in Bham, combined with any presence of moisture is a breeding ground for termites, and that's a huge problem for your property. Always recommended to get a termite bond with a new purchase. Worth. Every. Penny.

If you're an out-of-state investor, buying in Birmingham (or anywhere in the South for that matter), take note of these items and make sure you're aware of the costs to replace. No need to run for the hills, but just make sure the risk is considered in your offer and any repairs are estimated/planned appropriately. 

Here's to your investing success!!

-Hunter

Reach out to @Clay Collins or @Jason J. Biggs! Very good with investors. 

Hey Linda! I’ve heard a lot of feedback from both investors and roof vendors about the numerous cost increases for materials this year. Almost every month! That said, always good to shop around.

Have you reached out to Cardinal Roofing? Richard Hinson has helped out a ton of my clients and seems to be fairly priced.  

Hey Kevin, there’s a ton of Property Managers out there so good to know what kind of service/support you’re looking for. Are you looking for lease only? Someone with an in-house maintenance crew? A company that offers rehab or brokerage services as well as property management?

What kind of relationship are you targeting with your PM?

Feel free to reach out via private message if you have some specific questions. 

Welcome @Zachary Resendez!

Great to have you in the BP family and excited to see the "Birmingham, AL" tag. Not sure if you're local here in Birmingham or looking to invest remotely, but either way let me know if you ever want to grab a coffee (in-person or virtually) and chat.

Great advice from fellow BP members above, sounds like you've got some solid direction there. Shameless plug for BP but the "Book on Rental Property Investing" is phenomenal, and can be a guide for newbie and experienced investors alike. 

Like others have shared, a few critical steps on the front end:
1. WHY - figure out your why, be as specific as possible
2. Finances - Know where you stand, where you want to be, and identify any gaps in between. Credit score, cash reserves, current assets, etc. *Note: you don't need to have a ton of cash reserves to get started, but you do need to know where you stand. 
3. NETWORK - Lookup local FB groups for your target market ("Birmingham RE Investors", "Alabama Investing", "REI", etc.). Call realtors and property managers to get a feel for the area and ask to meet for coffee or lunch. Keep leveraging BP, there's more knowledge/experience here than anyone could take in in a lifetime. Go for it!

If you just dedicate your time and efforts to those things now, the other stuff will come. 

Look forward to seeing your progress here!

If you're looking for someone local in Birmingham, I've worked with the following contacts and they've been very helpful:

Edward Thomas (CPA) - Snow & Associates

Steven Bode (RE Attorney) - Cloud Willis & Ellis

Happy to provide their contact info via direct message if you'd like. 

 We love Huntsville too! Just opened up an office up there actually and working with some institutional investors to build up a the portfolio. 

Curious, since I don’t know as much about Huntsville, what areas are you liking the best? Specifically for C class and above?

@Percy N.

 @Addison Watson Love seeing some of the remodels happening in Norwood. And I believe they are beginning demolition soon on the old Carraway hospital? Now would be an excellent time to get to know that neighborhood and scoop something up! Thanks for sharing!

Hey Amber! I agree with Craig and Taylor that the 1% rule is definitely more a guideline than a requirement. I have tons of investors that have come off the 1% rule slightly in the last 6 months, with prices rising along with interest rates. Keep in mind, for higher class properties (B and above), investors aren't as much expecting the higher cash flow, but more so the long-term appreciation, so those properties often come in under the 1% rule. 

That said, we're still seeing BRRRR deals come through at the 1% rule or above in some of our markets like Birmingham, Detroit, Columbus, and Memphis. These markets tend to have lower entry points and great value-add opportunities, supported by solid rental comps. Not sure if remote investing is part of your strategy yet, but definitely recommend getting a team together if you plan on investing outside of Houston.

 That's a great question Mario! I'm working on a meeting with Cornell and will make sure to ask him that question. Parking will be a big key in all of this, even with the new bus system in place.