Help with deal analysis - turnkey rental

[Abhishek Agarwal]

Please help with the deal analysis. Here is the link to the report: https://www.biggerpockets.com/analysis/rentals/95216d60-1063...

This is my first turnkey rental investment. I am just getting started, so not sure if I am missing anything. Please share your thoughts. 

[Bruce Lynn]

I don't know about AL, but looks like a very small town to me.

What's driving the growth?

What are the demand drivers?
Is there much of a rental market or is most owner occupied?

If you are thinking about buying at $350,000, but average prices are around $150,000, you'd be double the average or more.  I'd think you'd want to be closer to the average range to hit a bigger target market.  At $350,000+ you might be in the top 10% of rentals, which is not where most investors want to be.

I don't think I would just look at growth rates in a small town and determine that is where I want to invest without knowing a lot more about that town.  In a town of 15-20,000 what healthcare industry can they have?  Call the city development person and see if you can find out what is driving the growth and if they expect it to continue.

Maybe it is a great bedroom city and lots of people commuting to Birmingham?

Do you know the city, know anyone that lives there, ever visited?  That might be your next step.