Investor · Los Angeles, CA · Member since 2024 · 5 posts · 6 votes
Super fired up to join the community and begin my section 8 BRRRR journey! I'm looking currently in the Birmingham/Montgomery market, any suggestions or advice would be much appreciated
Super fired up to join the community and begin my section 8 BRRRR journey! I'm looking currently in the Birmingham/Montgomery market, any suggestions or advice would be much appreciated
Hey @Eric Fernandez, welcome to the BP Forum! Do you have an idea of the property type (SF, 1-4 MF?) or purchase price in mind? Are you targeting a certain number of bedooms/unit (this is how S8 generally calcs the rent for each unit)?
Yes, mainly looking in the $30k-$100k range (I know anything under $65k is a bigger project). Right now I'm in Alabama looking at houses. Mainly SFH in the 2-4 bedroom range, open to a duplex if the price is right. I'd love to find some owner financing deals but that's been a grind haha.
That's awesome you're diving into the Section 8 BRRRR journey! Birmingham and Montgomery have some solid opportunities, especially in that price range. As you already know, anything under $65k will likely require a heavier lift in terms of repairs, but that's where you can create the most value. For the SFH in the 2-4 bedroom range, focus on areas with stable demand for rentals—both cities have neighborhoods where Section 8 housing can do well!
Also, just a thought, if you're ever considering expanding your search, Oklahoma is another great market for Section 8 rentals that can cash flow well. It's worth taking a look at if you're seeking higher returns without needing as much work on the back end. It’s not too far from Alabama, and the state has a solid Section 8 infrastructure in place for both single-family homes and duplexes!
Best of luck with your journey, and don’t hesitate to ask more questions if you need advice along the way!
If you haven't already, talk to property managers about Section 8. When I bought my first place in Birmingham, the property manager at the time said they would not deal with Section 8 unless the tenants were inherited.
Section 8 sounds like a gold mine but it has its challenges that only boots on the ground can really help with.