All Forum Posts by: Mev D.

Quote from @Michael S.:

@Mev D. - this is just my opinion, but I think you're at higher risk for being underwater in 5 years in Meridianville at that price point than appreciating anything substantial.  New Market, I think you have a chance of some appreciation so long as you're in the Buckhorn school district. 

Those numbers just don't work well for either a rental or an appreciation play.  

But it's just the market here in general right now - we haven't even written a single offer in the past 4 months, simply because the deals don't work - either the flip margins aren't enough to make it worthwhile, or the LTR numbers are simply negative cash flow without putting more than 30% down.  

Heck, we just sold a house (we had originally planned to be an LTR) this month simply because we couldn't see how we could sell it for much more in the future than we were offered for it now - plus, with the interest rates, we were looking at a cash flow negative situation after we finished the rehab.  So we took a solid profit on the sale rather than holding it as an LTR.  

 @Michael S. thanks a lot for sharing your feedback and perspectives from being on the ground there. Some of my numbers were looking workable due to temporary seller financing for two years, but I don’t want to bet on that alone, especially if I could go underwater on equity.

I should look at New Market more. New construction houses there seem to be selling for $295-340k in the Southwest area of the town, which I’m assuming is part of the Buckhorn school district. The rents are lower in New Market.

Is there any potential for appreciation there or is the price point still too high? Is the broader Huntsville market a place to wait and watch for things to stabilize a bit before investing?

Quote from @Michael S.:

@Mev D. - what are the general price points for those new builds?   

Appreciation may be quite limited on new builds in those areas with how high pricing is right now in North Alabama.  

The prices are around $340-$360k. I agree appreciation might be limited and really slow. My timeframe is 5+ years so I’m hoping there is continued growth in the area similar to how the RTP area has grown over time.
What do you think? Is it too late to be in the market.

Quote from @Dena Puliatti:

@Mev D.those are good base numbers to use in your calculator.

Good to know. Thanks so much for the quick response! Huntsville is surely an exciting area to be in right now.

Is the Huntsville area (and surrounding towns like Meridianville, Hazel Green, New Market) still a good place to invest or is the rental market getting overheated with all the new construction? 

@Dena Puliatti I am looking at some new builds, 4B/2BA, ~2200 sq ft, in the Meridianville and New Market areas. Would $1900 be a reasonable rent in Meridianville and $1700 in New Market?

Any thoughts would be appreciated. Thanks!

I’m looking for recommendations too so I’ll follow this thread.

Hi BP community,

I just wanted to share that I recently closed on my first turnkey deal with Rent to Retirement in Illinois. I am busy in a full-time job in Boston and wanted to work with someone trustworthy to get started quickly rather than get stuck in analysis paralysis or be discouraged by Boston prices. I came across Rent to Retirement through the BiggerPockets forum and podcasts and was encouraged by numerous positive reviews.

I bought a single-family home with a tenant in place, generating cash flow. The whole process was pretty straightforward and smooth. We worked with @Eric Winkler at R2R. He is very knowledgeable, provides excellent service, and was always a quick call or email away. We received recommendations for the lender, insurance, and property management, and the team worked efficiently to close the deal on time. I found independent inspectors. While they were a few minor incidents, like the tenant refusing entry to the appraiser due to COVID concerns or issues with fixing things that showed up in the inspection, Eric helped sort it all out in the end, and we got them resolved.

We look forward to working more with their team in the future. We are also in the process of going through a new construction property in Cape Coral with them.

If you are on the fence and thinking about getting started, I'd recommend a quick discussion with them.

Thanks to @Eric Winkler and @Zach Lemaster!

Rough Numbers

• Purchase price: $200,000
• Cash invested: $52,0000 (25% down conventional financing)
• Rent: $1,750
• Property Mgmt.: $125 per month, but I assumed 10%
• Capex+Maintenance: 5% (Assumed this since the home was recently rehabbed and all major items have 7+ years)
• Property tax: ~$5,000 (Could increase in the future; not sure)
• Insurance: ~$600
• Cash flow: ~$250 per month (while not huge, I expect some appreciation)

Thanks for sharing those details @Drew Ramasco.

Erica, I'll keep you posted if I learn anything new.

I had similar questions on the potential of the 32179 zip code and the Ocklawaha market relative to 34472. Are they similar? 

@Erica L., did you find out anything new?