All Forum Posts by: Jason Y.

I'm trying to BRRRR in the Birmingham area and the requirement was 1% rule. As good deals are starting to become scarce, I thought about Tuscaloosa. Seems like the homes cost more but rents are generally higher. Not sure if it fits the 1% rule. Any recommendation on property manager and contractors for rehab that you can recommend? Anyone else BRRR in Tuscaloosa comment on Birmingham vs here or Montgomery?

If there are contractors/wholesalers out there, please reach out.

@Cory S. Thanks for the response.  I am assuming the taxes you listed are annually. How come Pinson taxes are so high at 1.6% ($1,129/$70,000)?

I thought Jefferson County property taxes were around 0.7% annually?

@Jay Weathersby I looked at the appreciation for Birmingham and it says it was about 2% for the last decade, which was about the same as Jackson. 

https://www.neighborhoodscout.com/al/birmingham/real-estate#description

With BRRR, as long as you can find a distressed property and fix it up so that the ARV is high enough, it would be repeatable right? Since the appreciation rats of Birmingham and Jackson are about the same 2% over the last ten years, wouldn't Birmingham have challenges with BRRR?

I am narrowing down to develop a BRRR strategy with a local team to invest in for the next few years. I have narrowed down and looked at high Cash on Cash returns in two very similar cities. Birmingham Alabama vs Jackson Mississippi. Both seems very similar on low appreciation (not very high) and average price of single family residence homes (pretty low). Income levels are about the same. Rents are surprisingly high compared to the cost of the homes, which is why I am looking at these two cities now vs higher cost areas like Kansas City and Atlanta. I read that vacancy rates are high, both in the 17-22% which worries me. I am not sure why vacancy so high? I am not sure about the job growth. Alabama is a college town so there are always students to rent to. Seems like jobs are mainly medical and college type jobs. In Birmingham, there seems like there might be areas outside to invest in, if Birmingham gets dried up. We don't know anything about Jackson and what immediate local areas that are outside of that city. Seems more limited.

My goal is with a cash investment, I am targeting single family homes in the price range $50-$150k. Then rehab, rent and cash refinance. I want to establish a good and reliable team (agent, property manager, contractor) who can help me find distressed properties and fix and rent and manage. And do this for the next few years. Since the two cities, looking at stats and numbers, seem very similar, it might just come down to finding a great team that is willing to work with while we build a portfolio. Buy, rehab, rent, refinance, manage, and repeat.

Can someone help me understand the dynamics between this two cities and what makes BRRR better in one vs the other? Please reach out so we can have a conversation. Thank you in advance.

I am narrowing down to develop a BRRR strategy with a local team to invest in for the next few years. I have narrowed down and looked at high Cash on Cash returns in two very similar cities. Birmingham Alabama vs Jackson Mississippi. Both seems very similar on low appreciation (not very high) and average price of single income homes (pretty low). Income levels are about the same. Rents are surprisingly high compared to the cost of the homes, which is why I am looking here now vs higher cost areas like Kansas City and Atlanta. But I am not sure about the job growth. Alabama is a college town so there are always students to rent to. Seems like jobs are mainly medical and college type jobs.

My goal is with a cash investment, I am targeting single family homes in the price range $50-$150k.  Then rehab, rent and cash refinance.  I want to establish a good and reliable team (agent, property manager, contractor) who can help me find distressed properties and fix and rent and manage.  And do this for the next few years.  Since the two cities, looking at stats and numbers, seem very similar, it might just come down to finding a great team that is willing to work with while we build a portfolio.  Buy, rehab, rent, refinance, manage, and repeat.

Can someone help me understand the dynamics between this two cities and what makes BRRR better in one vs the other? Please reach out so we can have a conversation. Thank you in advance.

Originally I was looking in Georgia for brrrr. Investors have told me that the cash on cash is better in areas like Harrisburg and Kansas City for BRRR. How have investors made out in this area for SFRs in the $50-200k range compared to Kansas City MO? Cash on cash seem relatively similar between the two cities. Thoughts on investors who have considered both cities and which ones you ended up doing BRRR strategies?

Originally I was looking in Georgia for brrrr. I've been reading that Kansas City MO is a hotter market for BRRR. How have investors made out in this area for SFRs in the $50-200k range compared to St Louis? I have also read about Harrisburg PA which seems like it has lower appreciation than KC. Cash on cash seem relatively similar between the two cities. Thoughts?

Anyone?  

I am reviving this thread. So if I use a Heloc to take out the initial investment, let's say $100k which has a $1250/month payment (from above). I'll use this to buy, in cash, a property for $100k. Let's say it rents for $1000/month (optimistically). This rent goes to pay for the Heloc. I'm still short $250/month and I'll be paying for the Heloc payment until I can cash-out refi, which I have read can take 6 months or longer. Once I am able to cash-out refi, the bank lends me another $100k (70% of ARV rule), use that to pay off the original Heloc. But if the ARV is low, then I will have to come up with the difference myself in order to pay off the original Heloc. Additionally, I have a new mortgage from the refinance. So my $1000/month rent now goes toward the refinance mortgage. If investors using this BRRR strategy, it seems like some could just be breaking even. Where's the cash flow? Unless I am doing the math wrong, I don't see how you can cash flow so quickly and easily?