All Forum Posts by: Jacob Franz

Congrats @Greg Rulfs! Looks like a solid first deal!

Etienne, there are many good markets to invest in across the U.S. Most of my investments are in Alabama currently as you can buy solid cash-flowing investments in growing markets. The conventional wisdom is to look at properties in the south and midwest as they are typically much more affordable in price but still command reasonable rent. I would encourage you to look in the Huntsville and Birmingham markets of Alabama. Although both markets are hot right now, there are still opportunities to be had for the patient investor!

Hey Justin, I think the house hacking approach makes a ton of sense. The Huntsville market is very hot right now and duplexes, triplexes, and fourplexes can be hard to find, so I would encourage you to be patient. With interest rates as low as they are currently on a primary residence, you can buy solid cash-flowing deals in the Huntsville area through house hacking. One of my best performing investments in a duplex that I house hacked a few years ago. Let me know if you decide to head out to the Huntsville area. I'd be happy to give you a tour of the town!

Congrats, Lane! Looks like a great deal!

Hey @Sophia McMillion, I agree with Gorden - house hacking is a great way to dip your toe in the real estate work. One of my first property deals was a duplex where I lived in one-half and rented out the other. 

As far new v. old, there are trade-offs to both. New properties are likely being sold at a higher price, which is going to eat into your cashflow. The trade-off though is that you typically have fewer maintenance issues down the road if you are buying from a reputable construction company. My personal strategy has been to purchase properties that are new to recent construction (7 years old or less). I manage all of my own properties and get a lot fewer calls about maintenance issues because I don't have 70 year old pipes and an electrical system that is older than I am. For me, it made sense to trade some return on investment in exchange for fewer headaches down the road. I think this approach makes particular sense if you are not planning on living in the area long term. Dealing with maintenance issues for a distance, although still very doable, can be a challenge.

Hey Amy, I'll shoot you a PM. The market is hot right now and deals can be difficult to come by, but I am happy to share my experience with you!

Hey Amy, I wouldn't be scared of starting out with house hacking a duplex, triplex, or fourplex. House hacking is a great way to get your foot in the door in real estate. You get a smaller down payment, better interest rate than a straight investment property, and someone else pays part or all of your mortgage. One of my first real estate deals was house hacking a duplex in Southside. It crushes it (ROI 17%) and has been very easy to maintain and keep leased up. You will need to be selective in your tenants as a high maintenance tenant can make your life miserable if they are living next to someone they don't get along with. This has only been an issue for me once and can be avoided with some planning.

The returns in Birmingham vary depending on where you want to be in the city. The market has also heated up quite a bit, but there are still deals out there to be found.

Let me know if you want to connect. I would be happy to share more about my experience!

Hey Bryan, have you looked at Huntsville, AL? It has seen 11% growth since 2010 and is anchored by strong economic drivers, including the Redstone Arsenal, a Toyota manufacturing plant, NASA, Boeing, and numerous other major technology and aerospace companies. Homes have seen massive appreciation (8.9% average increase since last year) but are still very affordable compared to most of the country. Do a bit of googling, and I think you will see why it is an attractive investment area. Birmingham, AL is also a great market with homes that cashflow and have seen strong appreciation over the last 5 years. 

I own three properties in Alabama and am looking to add more this year. Let me know if you have any questions about either of these markets. Happy to connect and good luck with your real estate journey!

Hey Gordon, the Huntsville area has certainly become a very hot market with quality, well-priced properties staying on the market for a day or two before going under contract. With that said, I believe there are a still opportunities for buying decent deals in the market that will cashflow but a person has to be very selective and willing to move quickly when the opportunity arises. 

As to Decatur, its population has basically been level (0.2% annual growth) for the last 5-years and is a bit too speculative of a play for my taste. I would gravitate towards Athens instead. It's a better market that has seen solid growth for the last few years and is projected to see annual growth of 2.5% for the next 5 years. Home prices are starting to heat up but are still better than Huntsville right now.  

I own a number of investment properties in Alabama and am looking to add more in the Huntsville/Athens market in the near future. Also, I am a broker based in Birmingham that stays active in the Huntsville area so let me know if you are needing any help in the area.