All Forum Posts by: David Cherkowsky
David Cherkowsky has started 12 posts and replied 64 times.
Post: Considering Out of State Investing in Huntsville - Interested in Networking
- Investor
- Alexandria, VA
- Posts 64
- Votes 29
Quote from @Michael S.:
@David Cherkowsky - first off, I can't argue with the idea of investing in your own market, as noted above by the other posts - that is obviously what I do.
As for Huntsville, it is tough to find deals right now that work. A/B class are going to be negative cash flow unless you can find an amazing off market deal and/or put over 30% down with a 30 year note. Even C/D class that cash flow decently are harder to find now.
Several years ago, you could find a rough house in 35810, 35811, 35816, or 35805 for less than 100 a square foot, rehab it, and rent it for cash flow. Now, houses in those zips that need work are 150+ per square foot on the MLS, and even through some of the wholesalers.
Duplexes/Tri/Quads are not common here, and typically in rough areas. But I would not recommend MF right now - they have overbuilt new MF here in Huntsville, and vacancy rate in MF is becoming problematic.
Hence, you may be better off staying local.
We have probably 10 investors for every deal in this area right now. No joke.
Good luck.
Thanks for the info Michael. Appreciate it.
Post: Considering Out of State Investing in Huntsville - Interested in Networking
- Investor
- Alexandria, VA
- Posts 64
- Votes 29
Quote from @Brandon Allenczy:
I agree with everything @Nicholas L. mentioned. Picking an area that is more accessible but you don’t have to be in everyday is great. I live in Hagerstown and own a couple properties here because we got started by househacking. Hagerstown is a fantastic growing market; the long term rental game is great if you screen tenants well, but mid term rentals with travel nurses are pretty lucrative here.
I’m a full time agent licensed in MD and PA, let me know if you want to chat any more about markets!
Thanks for the response Brandon. I'll PM you. I am absolutely interested in hearing more about Hagerstown and other more local markets.
Post: Considering Out of State Investing in Huntsville - Interested in Networking
- Investor
- Alexandria, VA
- Posts 64
- Votes 29
Thanks for the detailed response. I'll take a look in areas closer by.
Quote from @David Cherkowsky:
@Nicholas L.
Thanks for the detailed response. I'll take a look in areas closer by.
"i know the numbers on paper look great in a place like Huntsville, but we see a lot of folks in the forums in markets like DC or CA, who buy a random property in AL or OH or KS, and then immediately struggle because they didn't vet it properly, or didn't realize it wasn't in as great a neighborhood as they thought, or even buy an OK property, but then make $32.50 a month in 'cash flow,' and are disappointed in their return."
I could see how that would happen. I'm certainly trying to avoid getting too married to one area off the bat and making a rash decision. I appreciate the input.
Post: Considering Out of State Investing in Huntsville - Interested in Networking
- Investor
- Alexandria, VA
- Posts 64
- Votes 29
Hi All,
I am new to real estate investing and am considering investing out of state. I live in the Washington DC area and it seems difficult to find cash flowing properties here. One area I am considering for OOS investing is Huntsville Alabama. It seems like Huntsville has a nice combination of cashflow and potential appreciation.
I'd be interested in hearing from folks more familiar with the area on the general view of the city in 2024, things to look out for, things to avoid, etc. I was planning on focusing on small multifamily properties (duplexes, triplexes, and quadplexes), but I'd be interested in hearing people's' thoughts on the best investment type for the area.
Thank you for your time.