All Forum Posts by: Dylan Thomas

@Bart Van Leijsen I have 2 partners on this one. One is a custom home builder and one is a commercial contractor. So I let them head up that portion. So we did it ourselves, but I personally didn’t head up that part

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $40,000
Cash invested: $55,000

Fix and Flip. All in for 95k. 40k purchase and 55k rehab. ARV 200k

How did you find this deal and how did you negotiate it?

Off market

How did you finance this deal?

Cash and HELOC

How did you add value to the deal?

Complete renovation

What was the outcome?

Flip for almost 100k profit

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am an agent

@Brian Piechocki Currently, yes, I do think Mobile is a better area to focus your search. This is mainly because there are more properties available in Mobile County vs Baldwin County and the price points are lower as well. There is not a whole lot available in Baldwin County right now that would make sense as a long term rental. 

The "1% Rule" is not set in stone as far as a property's ability to cash flow. There are obviously multiple factors involved including how much would need to be financed. However, that is a pretty good starting point as far as quick evaluations go. There are very few properties in BC available on the MLS that are under $200,000, meaning to hit 1% they would have to rent for at least $2,000. For the most part, this is not the case. There are some decent housing options at higher price points, 250k, 300k, etc. But, it would be pretty unrealistic to expect these to rent for $2,500 or $3,000

This is why my main focus for long term rentals is in Mobile. You can find houses for sale under $100,000 there. They wouldn't all be good choices, but there are more opportunities to check on anyway.

As far as Daphne vs Foley, I would choose Daphne. Foley is growing, but with new construction comes higher price points. In Daphne, Lake Forrest is always a good neighborhood to check. It's a decent area, with older but well maintained houses. The rent to purchase price ratios can be a little better as well.

@Brian Piechocki I think it will take some time before the huge growth of Baldwin County reaches the rural areas of Robertsdale, Bay Minette, etc. I definitely think there is potential for long term appreciation, but I think it would probably be more beneficial to look into areas of Mobile, SF, Daphne, Fairhope, and Foley, before I started to look at those areas north and more rural.

Some of those areas have higher price points but they also generally bring higher rent numbers as well.

@Tim Cornwell Sorry for the delay, I wish BP notified us for forum replies without having to use the @ symbol.

Using Bureau of Labor Statistics data:

Since 2021, the Labor Force has increased from 190,000 to 195,000. Since 2022, there has been an increase around 3,500. In that same time period, unemployment has been cut in half, going from 6% to 3%. The Consumer Price Index is basically 0.2%, which makes this area one of the least hit by inflation issues.

3/2's are about 215,000 median, with a good bit of variability depending on the area

@Ricardo Soto I could help with that. Are you buying them yourself or are you a wholesaler?

Can be purchased all together or in smaller packages. Most under 100k, a few slightly higher up to 130k. Most have tenants. 

Message me for more information

FY2023 Small Area FMRs For Mobile County, AL:

@Trevonte Mosby I am sending you a message now

@Kay Bailey I am a Realtor in the Mobile and Baldwin County areas of Alabama. I'd love to talk with you about the investment possibilities there.

Hope this helps!

@Konstantin Ginzburg If you are interested in Alabama, this might help you as well