All Forum Posts by: Michael S.

We don't have any properties in any of the zip codes you listed.   

That doesn't mean those zip codes are bad or not feasible areas for rentals whatsoever...just means I can't give you a fair answer to your questions.  For example, 35763 is the Hampton Cove area, which has a lot of nice houses and is a very popular place to live in the Huntsville area. . .but not sure how well rentals work in that area, as they are typically larger houses.   

Would strongly recommend using an LLC

This is a major reason why we use a property manager for our properties.  One thing no one has mentioned in this thread is the value of the time you are spending on this exercise.  Already, it sounds like hours, and you're not close to being done yet.  10% of the monthly rent is WAY less valuable to me then the amount of time I am saving not having to review applications, show the house, call the plumber, etc.   Something to definitely consider moving forward.  

Interesting - the market in Huntsville right now has not slowed down at all;  in fact, I would argue it is even crazier than it was 3 months ago, and is now virtually impossible to find a property to cash flow unless you go to C/D neighborhoods or go in areas that typically have zero appreciation (outside of Huntsville and Madison city limits).    

The whole point of an LLC is to keep your LLC assets clearly separated from your personal assets. I would strongly advise against getting the loan originated in your name, and then transferring it subsequently to the LLC. In effect, you have basically demonstrated that the LLC and your personal assets are connected, and have given a lawyer an avenue to drag your personal assets to the table if the LLC is sued.

This thread is a great example of why I prefer to invest in my current city rather than OOS.

There is always unique factors that affect every market that OOS buyers just won't be privy too;  sure, an agent can be a wealth of knowledge (ours is), but there is still something said for knowing the area well.

I find some of the posts from OOS folks on Huntsville interesting, because it shows how little they truly know the market here.  Everyone assumes that houses in 35801 are fabulous due to various websites and experts on the area - there are some parts of 35801 you absolutely have to stay away from, and some parts that the rent changes by $200 to 300/month by simply moving one street over.  But that knowledge can't be gleamed from simply reading about the city or rentometer;  if your agent works mostly in suburb properties, they may not know these nuances as well.  You just  can't replace first hand knowledge of the location you are investing in.  

agree with @Al Pat - we also do not consider any SFH acquisitions that will rent for less than $1000/month. So far, this rule has served us quite well with the quality of renters we have

I would offer to let them out of the lease and move on immediately.  The relationship is fractured, and there is a high chance one (or all) of the following will happen:

1.  They blow up about every small thing that goes wrong (aka dishwasher is too noisy)

2.  They trash the place to "get back at you"

3.  You receive a summons to small claims court

Interesting thoughts.  I don't use the title landlord.  My title is "the dude who doesn't trust his retirement to social security or the stock market".  Not very catchy, but 100% accurate at least.  

For those of us who do not have years of experience in the real estate world, a really good home inspector can potentially save you thousands of dollars...it's unfortunate you had to find this out on your first purchase.  Definitely spend some time looking into other inspectors in your area before hiring someone for your next purchase.