Out of state investing- BRRRR

[Cecilia Fields]

Hello everyone, I'm looking for some insight into the BRRRR method in several markets. Specifically Detroit MI, Highland park MI, Saint Louis MO, and Springfield MI. I'm thinking a extremely low purchase price, (50-90k) then Reno from there. I have a niche for multifamilies if that helps.

Just love to hear your thoughts, questions, concerns, or network recommendations for hard money lenders, real estate agents, contractors, even mentors would be appreciated! 
Thank you 

[Melissa Justice]

Quote from @Michael S.:

@Melissa Justice- I have no doubt you are very knowledgable about your own market in Detroit.  That said, how much experience have you directly had recently in the Huntsville market?  Your comments above suggest that you may have been active here several years ago.  However, for the sake of OOS investors on BP not familiar with the market here, I'd like to make some comments to your statements above.

You recommended Huntsville for the following reasons, with my notations as follows:

"If your main goal is cash flow with fewer headaches" - actually, cash flow is non-existant currently for turnkey in Huntsville for A-C+ areas;  off market with rehab, perhaps, but not in A to B neighborhoods right now

"Landlord-friendly laws" - agreed

"Stronger rent-to-price ratios" - disagree;  average ratio here is now down to around 0.5 to 0.7%

"Options for fully renovated or new-build SFRs and duplexes" - duplexes are non-existent in Huntsville compared to other cities

"Professional property management built in" - certainly may be true, but I do not know who you use for property mgmt here

If you haven't truly been investing in Huntsville over the past 2 years, things are now  dramatically different.  FYI

I always appreciate thoughtful dialogue, especially when it comes to helping out-of-state investors make informed decisions.

To clarify, my original comment was more directed toward Birmingham and its surrounding metros, rather than Huntsville specifically. I work with investors across many landlord-friendly markets in the Midwest and Southeast, and with nearly 15 years of experience in the real estate industry, my role is to help clients evaluate which markets align with their individual investment goals, whether that’s cash flow, appreciation, or a mix of both.

You’re absolutely right that Huntsville has tightened in recent years - particularly in turnkey inventory and price-to-rent ratios, which are often closer to 0.5%–0.7% now. I still see value there in select situations, especially when long-term fundamentals are the focus.

That said, my comments were primarily highlighting Birmingham, where we’re seeing:
Steady job and population growth
Strong rental demand in B-class neighborhoods
Continued affordability compared to peer metros
Home value appreciation around 6.5% YoY (Zillow, Q1 2025), along with a relatively low cost of ownership due to Alabama’s low property taxes and landlord-friendly laws.

Additionally, in our space, especially with builder relationships offering seller incentives we’re often able to leverage concessions like rate buydowns to help create positive cash flow opportunities, even in today’s rate environment. Of course, this is always case-by-case and not a blanket solution for every deal, but when structured correctly, it does make a meaningful difference.

I work with vetted local teams in each market and always strive to pair investors with properties and partners that fit their goals and risk tolerance.

Appreciate the dialogue and always open to exchanging insights - collaboration in this space only makes us all better.