All Forum Posts by: Michael S.

@Kim A. - patience is the key in this market right now, as many of the deals we've reviewed simply don't work.  Right now, we are on track to sell more than buy in 2024, and likely will buy less properties than in any year since I started doing this in 2017.  Yes, it's that hard to find deals in Huntsville right now.  

@Lindsay Davis

"$150,000 can buy you a tenant-ready 3 bed, 2 bath single-family home in a B-grade neighborhood. You can probably rent it out for between $1,200 and $1,400, so from a cash flow perspective, that’s just shy of the 1% rule that’s often talked about here."

I am going to respectfully disagree with you on this statement.  

This was true back in 2021 and prior.  Current Huntsville market, 150k will get you a 3/2 at best in maybe a C+ neighborhood unless you get a unicorn off market deal.  

If you want a rent ready 3/2 in a B neighborhood, it will be 200-225k at minimum.  Rent probably around 1400-1500/month depending on finishes and exact location.

The number simply don't work well in Huntsville right now.

@Nina Penuela - I couldn't disagree more with the comment "Huntsville is a market to watch in 2024, offering solid opportunities for both investors".

This market has been absolutely brutal in 2024 for investors.  

-Almost nothing works for LTRs.  

-BRRRR is non-existent.

-STRs were essentially eliminated by the city, removing a potential investment class of properties

-MF went from non-existent to overbuilt

-Flips have been hurt by high interest rates and brutally low appraisals.

-Commercial vacancies remain hard to fill

-We are on pace to do the least number of transactions this year since I started REI in 2017.

Not trying to be negative, just being honest and realistic.

@Trina P. - I'm quite familiar with that area of Huntsville, and just took a look at your listing online.  If you'd like honest feedback on the listing, the good and the bad, I'm happy to help.  Let me know if you'd prefer the feedback in the public domain here or as a direct message.  

@Jane Trust Ryan - interesting - did the individual who sold you the properties market these as "greater Huntsville area"?  Because they are squarely in the Athens / Limestone County area, and not even in the same county as Huntsville.  

Now, that said, your location is still good as Athens is a growing area and I've heard positives about it from other investors - however, we do not invest there at all (we don't have anything west of the city of Madison), so I honestly couldn't give you any feedback on the rental market there.  Sorry.  Good luck with your properties.  

@River Sava - correction - it "was" a hot market to invest in until 2024.  Not anymore.  

@Monico Lorenzana - I think it's great you are starting out in REI. Good luck on your journey. Now, if you want the blunt truth, I'd recommend you look at another location for OOS investing. Right now, the market here is brutal and at a standstill. Why? Overbuilt MFH, the vast majority of STRs being converted to LTRs in the past year due to law changes, and rent amounts are currently outpaced with what properties are selling for. Personally, we are on pace to sell more properties this year than the number of acquisitions for the first time since I started doing REI in 2017. To answer some of your other questions in general about Huntsville, there are almost no basements here, and you never want a pool for a rental unless its an STR, which are now forbidden here without proper zoning and permitting.

@Kerlous Tadres - just as an FYI, duplexes basically don't exist in Huntsville relative to the number you may see in your home city.  

@Alex Silang - here's the quick guidelines we came up with for naming our LLCs:

1. Something easy for you to remember

2. Something reasonably easy for other vendors and businesses to spell

3. Nothing offensive that would turn off prospective business partners

4.  Something that is not easy to identify with the owners if desired (aka don't use your initials)

5.  Something that is similar between business partners (this is for fun - like if you share a similar hobby)

6.  Avoiding a trademarked name or term

@Quentin RCollins - where is your land located?  If you are not in Huntsville or Madison proper, you may want to wait out things for a minute, as some of the outlying areas are definitely tilting toward supply exceeding demand now.  

@Gash Nookala - I am unclear why you would want to have LTRs in Huntsville and self-manage them remotely.  Are you going to handle 1 am toilet leaks?  Are you going to learn all the state and local ordinances to protect yourself from legal mistakes?  I'd recommend you hire a local PM to handle these issues if you are out of state and not familiar with the area.  

@Jane Trust Ryan - congrats on your purchases.  What zip code(s) are your properties located?  Based on your comment, are you having issues with getting them rented?