Investment ideas in Huntsville, AL

[Luke Ache]

I have been here for 2 weeks now, I moved here from CO to work in the aerospace industry and I am still trying to learn the market. I was wondering what have been your experiences with the following here in Huntsville:

BRRR

College Housing near the UAH campus

Multifamily Properties, preferably 4-plexes

Live-In Flips

Thanks!

[Michael S.]

@Luke Ache - I saw you transitioned the discussion to a new thread, so I figured I'd answer your question here instead.

BRRRR is definitely still possible here - it's all about the numbers. They are possible in any neighborhood, including A neighborhoods; again, you have to know your numbers - rehab costs, comps, and ARV.

We have one property near UAH that rents great - it has positive cash flow but that's because we bought it in 2018.  Tougher to cash flow that area now, as the SFHs go for around  140k to 150k PRIOR to rehab.  IF you rent to college students, make sure the parents are on the lease.  Otherwise, you will be losing money on capital expenses very quickly.  Renting by bedroom will likely lead to positive cash flow even with the current cost basis of the properties there.

Huntsville is not a good location for 4-plex investing in general;  there are very few of them relative to the number of investors, which pushes their acquisition costs to be quite high.  In addition, many of them are in the rougher areas of Huntsville.  Avoid the Golf Rd area unless you like capital expenditures.

Live-in Flips - do you mean house hacking?  If so, this is an excellent way to invest;  however, duplexes are not common here, and are typically in the somewhat rougher 35805 areas, so proceed with caution.  

Hope this helps.