All Forum Posts by: Mike B.

I've experienced this as well. I was working with a Leading Huntsville Realtor earlier this year and most properties were basically going for market value.... then anything SFR in a decent C+ to A- neighborhood that got listed was under contract within 48 hrs. The 4-plex and multifamily properties were in C or D neighborhoods and looking over financials were cash monthly rent payments, with late payments and maintenance issues, higher crime, more run down properties on the streets, etc... The trick (as usual anyway) will be to find the off-market and value-add properties....

With that said, if anyone has a hold on West Huntsville, Madison, Harvest, or other (B) or better area properties with 7+ school ratings, please let me know. I'd Highly prefer turnkey to get started in the market until I can build a trusted local team (property manager, contractor, lender) to turnover a few properties a year going forward.   Like all buy & hold rental investors it would be ideal to have equity, appreciation, and cashflow off the bat if possible, with responsible and friendly tenants that earn 3X the rent on auto-pay with no maintenance issues!!  

For the locals in the area that might be able to help pinpoint areas of focus here --- think if you were an established hard working professional (not CEO or independently wealthy)  working at for example -- Redstone Arsenal, NASA, Military, one of the Universities or major Hospitals, the airport, a local lawyer, dentist, fireman, police, teacher, business manager, small business owner, corporate executive, etc, etc..  where would you chose for you and your family to live??   If you earn $50-$100k with the ability to select the neighborhood you live in, you probably are looking for a safe, well maintained, nice looking, updated, affordable home, in a neighborhood of similar properties, in a good school district, with easy access to shopping and parks and your work.    (Where are these properties??) 

Good luck to all and maybe we can join forces to partner on more and larger deals in the area!! 

Originally posted by @Michael S.:

For those not familiar with Huntsville, @Melissa Nash is absolutely right.  

The market has become oversaturated with buyers/investors with way too little inventory available.  Quality properties are selling within 24 hours of list with multiple offers routinely.   Right now, there are probably better opportunities for out of state investors elsewhere.  

If you're looking for primarily MFHs, definitely not the right city for you.  They are primarily C/D neighborhoods and going for crazy prices right now.

Not "worth it" by any measure.

@Patrick Gant

Rent back strategies sound great and can look great on paper, but think about the fact that if they are 4 months behind on their own house they own.... why would that become a different outcome when they are to pay rent to a stranger..?

The margins between the amount owed on the house and conservative ARV are quite slim, especially when you build in contingency, closing costs to buy and sell, holding costs, repairs, etc... it seems you might be luck to break even.

Just at first glance this property may not be a deal, but you could explore a seller financed option, a lease option, or a buy & hold rental if the numbers make sense. Either way, the seller should move out to make it work..

Can anyone offer any guidance / experience when it comes to the refi portion of the process if you own the property titled under your LLC? Seems much more challenging getting lenders to work with business entities, and they still want to run and report to your personal credit even with an LLC. Other than trying to find the right small local community bank or commercial institution, do you have any thoughts or recommendations? Thanks.

@Kenneth Garrett have you had any challenges obtaining commercial financing for SFR loans and refi?

@Alexander Felice Have you seen success or tried financing and refinancing when the property is owned in an LLC? I've noticed that to be an understated hurdle

@Steven Smith As-is its not a "Deal" if you're not profiting. You could possibly make the property into an investment depending on many factors but not every available property will necessarily be a good investment. Appreciation, although likely in CA, is just speculation at time of purchase.

@Jess White eRentPayment.com -- super easy and cheap and automatic.

Aim High! Air Power!

Welcome to the BP forums and congrats on your not-too-distant retirement.

You're questions could be answered in sooo many ways, so it's probably best for you to explore the forums and find a strategy that is interesting to you to pursue. 

Owning real estate as a primary home and rental investment property can bring you some tax advantages/deductions.

If you want your own space, you'll need to consider a wide variety of investing options that bring in cashflow, but will require your to make multiple payments on multiple properties.   If you're open to sharing the space, then look into what's referred to as "house hacking" where you rent out rooms in your home or your guest house, or you buy a duplex-fourplex, live in one of the units and rent the rest to cover your mortgage plus profits. 

Good Luck.  Stay safe of the bike bro.