While property taxes are definitely higher here, many investors are still drawn to the state's lack of income tax and the strong real estate market.

The higher the cash on cash returns the higher the risk.  

It’d be great to know a little more about your market preferences and non-negotiables, since Alabama’s pretty diverse in terms of what it can offer.For example, the Huntsville area is a much higher-growth market than Birmingham, and the median home in each area is priced accordingly to reflect that difference.Even individual markets can vary widely by zip code—properties in a Birmingham suburb like Forestdale are going to fetch dramatically different rents than homes in a neighborhood like Mountain Brook or Vestavia Hills.In any case, let us know what your buying criteria look like, and we can give more pointed recommendations.

Do understand that you will have to pay mortgage insurance and the rate will be much higher then if you put down 20% or more. https://singlefamily.fanniemae.com/media/20786/display

You can simply offer a higher sale price to do that. 3.

This would make decision making hard, on top of likely needing owners to sign mortgage guarantees, etc.Not enough involvement/too many owners, that you no longer satisfy SECs rules for involvement and it is really a security that needs registered or exempted.Some middle ground, like DSTs or these other fractional ownership, where the admin work is so intensive that fees need to be higher to make it worthwhile for the operator.Then again, I am drawn to real estate, so by nature drawn to traditional, proven structures.  

.- I would like to get a minimum of 12-15% irr on average, with potential for higher returns.- I have some past experience working with sponsors from PE funds on non-real estate deals.- I get an experienced sponsor/developer that can run the show so I don't run the risk of making any (very expensive) mistakes from my lack of experience.- I can get exposure to large multi-family with many tenants.

Refinancing out of the FHA loan and then taking out a new FHA loan when you are done won't be cheap and you may be refinancing into a higher interest rate.

All of my customers in NJ, NY, CT, CA, WA and other states are all buying in those states as well as a few others.The price to cash flow ratio is going to be better in those states as well as having a higher inventory of both single family and multifamily rental homes.

Generally places with high cash flow on paper are cheap homes in not so great areas where you have higher turnover, damages and real cash flow is lower.