All Forum Posts by: Michael Weir

I own three properties in Harvest, AL. They are all 3 bedroom, 2 bath properties (1200sqft - 1500sqft). I currently have them rented out for $900, $950, $975. To determine market value and monthly rent, I just use zillow. I periodically browse zillow: for sale, recently sold, and for rent to get a feel of the market. 

Harvest (like the rest of the Huntsville area) in the last couple of years has experienced very nice appreciation in the past few years. According to zillow, the 35749 area code has increased 10% in the past year. To find properties with an ARV of less than 100k, you will need to take a more active approach than I. The last property I purchased was in 2018. It was sold via the HUD website. I found it because it was next door to one of my other properties I noticed the foreclosure notices and kept my eye out.

Also beware that rental prices depend on location, neighborhood, and house. When running your numbers make sure you find comparables that are similar neighborhoods and houses. Harvest has at least three different neighborhoods:

* Rural Neighborhoods
* Neighborhoods with the cookie-cutter vinyl-siding homes crammed together (what I own)
* Neighborhoods with more the custom home feel.

Homes in each rent for different amounts. Just make sure when analyzing you are using the correct comps

I own 3 SFH rental properties (own 4 overall) in the Harvest Area. I like the area for a number of reasons:

  - I live in Madison and it is easy for me to get to.

  - Better Schools than some of the Huntsville Schools

  - Lower Crime than some of the areas in Huntsville

I paid between 57k - 70k for my properties and put about another 5k rehabbing them. I currently rent them out between 900 - 950.  You can find better price-to-rent ratios in certain parts of Huntsville. So far tenants have been alright. Only real complaint is that on average they are late 3-6 times a year. 

Harvest is definitely not considered "Huntsville" proper in the sense that you would tell someone that you lived in Huntsville when you lived in Harvest. However, the commute is only about 25 - 30 minutes to research park or Redstone Arsenal (The main centers of employment). Harvest is close to two major roads (255 and 53) that take you right to Research park and the Arsenal. Both flow relatively well during rush hour. I have a number of colleagues who live in Harvest and do not mind the commute. I would not worry about being that far out of town. Also Mazda is opening a plant right next to Harvest.

I do not the know the New Market market very well. If you are looking in New Market I would recommend that you look in Owens Cross Road. Similar distant out, little better schools, a little more desirable area in my opinion.

The only thing you should consider is that the Harvest market has been hot. I have not been seeing the deals that I saw in the past.

There are some areas around Huntsville but I do not which areas are C/D areas and which areas you should not invest in.  

As a Huntsville native, I can tell you the success of Huntsville is still largely tied to Redstone Arsenal (https://en.wikipedia.org/wiki/Redstone_Arsenal) and Marshall Space Flight Center. Long term, Jobs and growth largely depends on what the Federal Government does. If they cut NASA funding, that will hurt Huntsville or if they decide to fund more missile defense research that will help Huntsville.  Looking at previous Base Realignments and Closure (https://en.wikipedia.org/wiki/Base_Realignment_and...) has helped Huntsville but no guarantee about future BRACs. The engineering concentration has produced some commercial engineering companies  (ADTRAN, etc)

Major Employers

   - Aerospace/Defense

       * Lockheed

       * Raytheon

       * Boeing

       * Northrup Gumman

   - Commercial

       * ADTRAN

       * Schools System

       * Hospital

As for path for progress, I would recommend you research where Google Fiber is going in and the South Parkway Extension (http://www.al.com/news/huntsville/index.ssf/2017/0...)

The rent/price is okay but I would not expect much appreciation. Be careful, the nicer rent/price is around Alabama AM or Oakwood which have some bad areas and a more transient tenant base. 

I have two rental properties (SFHs) in Huntsville, AL. I use Rocket City Property Management (http://www.rocketcitypropertymanagement.com/). I am happy so far. 

I am Software Engineer. I have no experience in Real Estate investing. My goal is to own buy and hold properties in order to create a passive income to supplement my income. I have begun to listen to the podcast and read the forums in order to learn more.