New to Real Estate · Huntsville Al · Member since 2023 · 55 posts · 19 votes
Hello,
I’m looking for my first deal within 100 miles of Huntsville Al. I have a primary residence currently am open to making that a rental also. I want to buy and hold and have enough for about 20-25% of 165-175k for investment down payment. I would like cash flow. If I could find a multifamily to househack that may be a better option for 5%. I’m looking forward to connecting with agents, lenders, wholesalers, and other investors in Alabama
Welcome to BiggerPockets! Since you have a primary residence in the area, you’re probably already aware of this, but it’ll be tough to find a property in Huntsville proper within your $165,000 to $175,000 budget.
Luckily, your 100-mile radius puts a handful of nearby (and more affordable!) markets on your radar. For example, places like Decatur and Hartselle—which are 25 and 35 miles southwest of Huntsville, respectively—could work well on your budget. As for the numbers, we’re seeing $150,000 single-family homes in Decatur yield $1,250+ in monthly gross rents, so there are definitely some strong candidates for cash flow in the area.
@Michael Behr - cash flow in Huntsville right now is very difficult.
Doing a house hack is likely your best option right now.
Be careful with multifamily, as too much new multifamily has been built here in the recent past - depending on the rent level, getting tenants may not be that easy.
Exciting to hear that you're diving into real estate
investing, and Huntsville, AL, trust me, we love it here, this is a great place to start! Here's some guidance
on finding your first deal:
- Define Your
Criteria
- Explore
Financing Options: With
your budget for a down payment, you have several financing options to explore.
Conventional loans typically require a 20-25% down payment, while FHA loans for
owner-occupied multifamily properties may allow for a lower down payment,
around 3.5%. Connect with lenders specializing in investment properties to
discuss your financing options and get pre-approved.
- Network with
Local Professionals: Connecting with agents, lenders, wholesalers, and
fellow investors in Alabama is a crucial step in finding your first deal.
Attend local real estate meetups.
- Search for
Properties: Start your property search by browsing listings on real estate
websites, working with a knowledgeable agent who understands the
investment market in Huntsville, and exploring off-market deals through
wholesalers and networking connections.
- Analyze Deals
Thoroughly: Once you identify potential properties, conduct thorough due
diligence and financial analysis to ensure they meet your investment
criteria. Consider factors such as rental income potential, expenses,
vacancy rates, and potential for appreciation.
- Negotiate and
Close: When you find a property that aligns with your investment goals,
work with your agent to negotiate the best possible deal.
By following these steps and staying proactive in your
search, you'll be well on your way to finding your first investment property in
Huntsville, AL.
Best of luck on your real estate investing journey!
Welcome to BiggerPockets! Since you have a primary residence in the area, you’re probably already aware of this, but it’ll be tough to find a property in Huntsville proper within your $165,000 to $175,000 budget.
Luckily, your 100-mile radius puts a handful of nearby (and more affordable!) markets on your radar. For example, places like Decatur and Hartselle—which are 25 and 35 miles southwest of Huntsville, respectively—could work well on your budget. As for the numbers, we’re seeing $150,000 single-family homes in Decatur yield $1,250+ in monthly gross rents, so there are definitely some strong candidates for cash flow in the area.
