I live in central Alabama and unfortunately there are just not a lot of deals or opportunities here so I'm looking to investment in Huntsville. I figure with Huntsville growing its tech industry it might be a good place to find not only cash flow positive homes but homes that appreciate as well. However, I only have access to normal MLS listings. I'm looking to find some BRRR homes and I already have a pre-approval for a DSCR loan. I'm just here trying to connect with someone who can help me find my next deal. Thanks!
@Eric Blair - let me clarify a few things about the Huntsville market, since I actually live and invest here.
It is not "hot" - rents are not going up, MF is overbuilt, and the numbers don't work on 98%+ of properties for sale unless you want to put 25%+ or more down and do a 30 year note. That includes wholesaler offerings.
In fact, the numbers are so bad, I may not buy more than one property this year locally - although we typically do find some deals every year in Q4, so we'll see. We are definitely on pace to sell more than we purchase accordingly, as we sold several investment properties that no longer made sense given the rent "correction" we've seen here.
I'd recommend exploring Birmingham or Montgomery, as you may have better luck finding cash flow positive options. Good luck.
I live in central Alabama and unfortunately there are just not a lot of deals or opportunities here so I'm looking to investment in Huntsville. I figure with Huntsville growing its tech industry it might be a good place to find not only cash flow positive homes but homes that appreciate as well. However, I only have access to normal MLS listings. I'm looking to find some BRRR homes and I already have a pre-approval for a DSCR loan. I'm just here trying to connect with someone who can help me find my next deal. Thanks!
Huntsville has a lot of growth going for it, but the biggest challenge in any hot market is finding deals that actually pencil. Don’t limit yourself to MLS; a lot of BRRRR opportunities come from off-market sources, wholesalers, and investor networks. If you’re open to expanding your search, Midwest markets can offer lower acquisition costs, strong rental demand, and better cash flow potential. The key is finding a market and team that can consistently bring you deals, not just chasing one-off opportunities.
@Arman Ahmed thanks for the response. I'm hesitant on out of state investing only because I like dealing in areas I know. Montgomery doesn't seem to be very strong so I'm looking to expand into better markets. If I found a solid team in an out of state market I'd be more open to it
Hey @Eric Blair, I'd pay attention to a lot more than just tech industry growth when choosing a market. Tenantry has 60+ housing metrics for every US market to give you the full picture of how a market is performing and trending. Best of luck to you
One thing I'd keep in mind is that the best BRRRR opportunities often never make it to the MLS, so relying only on listed properties can make the search a lot tougher. I'd spend some time building relationships with local wholesalers, investor-friendly agents, property managers, and even contractors since they're often the first to hear about properties before they're publicly listed. Huntsville has seen a lot of growth, so I'd also pay close attention to neighborhoods where rents still support your numbers rather than chasing appreciation alone. Have you connected with any local REIA groups or investor meetups yet?
@Gregory Acs I've connected with an agent in Montgomery but not in Huntsville. I'm still on the fence about Montgomery so that's why I'm interested in Huntsville
@Gregory Acs I've connected with an agent in Montgomery but not in Huntsville. I'm still on the fence about Montgomery so that's why I'm interested in Huntsville
That makes sense. Huntsville has definitely been getting a lot of attention because of its job growth, but I’d still make sure the property’s cash flow works based on today’s numbers rather than assuming appreciation will continue. It’s easy to get caught up in a market’s momentum, but strong fundamentals usually make for a better long-term investment. If you’re still comparing the two markets, I’d also look at rental demand, vacancy rates, and renovation costs since those can have just as much impact on your returns as the purchase price.
@Eric Blair I'd recommend connecting with @Ko Kashiwagi . He has built up a BRRRR portfolio in Huntsville and he's a top notch DSCR loan officer as well.
I live in central Alabama and unfortunately there are just not a lot of deals or opportunities here so I'm looking to investment in Huntsville. I figure with Huntsville growing its tech industry it might be a good place to find not only cash flow positive homes but homes that appreciate as well. However, I only have access to normal MLS listings. I'm looking to find some BRRR homes and I already have a pre-approval for a DSCR loan. I'm just here trying to connect with someone who can help me find my next deal. Thanks!
@Eric Blair Huntsville has definitely been getting a lot of attention from investors. Since you're already pre-approved, I'd focus on building relationships with local agents, wholesalers, and property managers—they often hear about deals before they hit the MLS. Hope you find a solid property that checks both the cash flow and appreciation boxes.
@Eric Blair - let me clarify a few things about the Huntsville market, since I actually live and invest here.
It is not "hot" - rents are not going up, MF is overbuilt, and the numbers don't work on 98%+ of properties for sale unless you want to put 25%+ or more down and do a 30 year note. That includes wholesaler offerings.
In fact, the numbers are so bad, I may not buy more than one property this year locally - although we typically do find some deals every year in Q4, so we'll see. We are definitely on pace to sell more than we purchase accordingly, as we sold several investment properties that no longer made sense given the rent "correction" we've seen here.
I'd recommend exploring Birmingham or Montgomery, as you may have better luck finding cash flow positive options. Good luck.
Hey Eric, I'm local here in Huntsville and have been getting more active in real estate, mainly learning wholesaling and creative finance. I also own a local moving company, so I'm around homeowners and properties pretty regularly. I'm always looking to connect with other people interested in the Huntsville market. Would be great to connect!
Huntsville's competitive on MLS right now, so the DSCR pre-approval helps but won't unlock much if you're only shopping retail. Off-market and tired inventory is usually where BRRRR math still works. What's your max all-in vs ARV you're underwriting to?