Brrrr-ing in greater Montgomery area
So... I've owned a rental for more than a decade, but my wife and I are just now being much more intentional about our investing. Thus the newbie questions:
We recently closed a 1031 exchange on a 3/3 in the Pine-Level/Prattville area which we are currently turning into a 4/3 with the addition of a set of double barn doors. This will be our third home we've ever rented out, but the first one which we have purchased specifically as a rental (we've kept each primary residence as we moved out).
That said, as this process wraps up, we'd like to move on to Brrrr-ing a duplex next, and we think we can get a hold of about $70-80k to use as cash (or what will look like cash to the seller). Most of that money would be actual cash, and a portion would be from the equity in our two current rentals. We also have possible access to $15k in private money. So.... MAYBE $95k if we beg borrow and squeeze.
What's the chance we can do a successful BRRRR for $80k in the greater MGM area? Is anyone already doing BRRRRs at this price point? I see plenty of cheap SFHs... but not many duplexes. And most seem like they would easily take more in the reno than the ARV would justify.
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- Realtor, Contractor, Property Manager
- Montgomery AL and Kowaliga, AL
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Those numbers have changed in the last 3 months. Now it will cost you 95-100 all-in to be in a B area. But, rent will still hit the 1% rule. (950-1,000). The best zipcodes will be 36117, ,36109,36106. With good areas in all of the other zip codes, but you would need to check out the particular neighborhood or street. City Data has some good info on demographics.
- Greg Parker
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