Would you buy in 35801/35802?

Question

I’m considering buying a SFH in the Huntsville area in cash to use as a rental property. Would you buy in 35801 or 35802? Right now I like the idea of one property bringing in more rent vs two properties at a lower rent in a lower grade neighborhood. Thoughts?

Dave DeMarinis · Answer

It really depends on your goals. Those are both good zip codes and generally meet your more expensive rent. If the numbers meet your goals and criteria, then yes.

I thinking you are on to something else as well, nicer properties and more expensive rents generally perform in real life similar or better than the spreadsheet forecast. The lower rents in lower grade neighborhoods typically perform worse I. Real life than they do on the spreadsheet. Finally, Huntsville is growing and improving so rapidly, values can really change from block to block and house to house.

Dena Puliatti · Answer

Those are both very desirable zip codes here.  You can command higher rent.  I can run some rental comps for you if you are interested.

Jason Norton · Answer

@Jessica Fuller

Yes.

My team and I have investors all over Northern Alabama. I even have a Team that looks to do fixing flips fixing holes and 30 year amortization schedules on the southside of Huntsville where those two ZIP Codes are.￼￼

Ruth Blue · Answer

@Jessica Fuller My Mom @Rhonda owns 2 SFH in 35802. Quality rentals managed by Dietrich Rentals.

Jessica Fuller · Answer

Thanks Dave for your thoughts! Helps me to know I’m not totally off track.

Would you buy in 35801/35802?

Most Popular Reply