All Forum Posts by: Jason Carter

I work in Birmingham. Birmingham and Montgomery are both good for cash flow. Huntsville is probably the best bet for appreciation. But a little more competitive to get in right now from what I hear. 

I like it. Congrats! 

@Eva Huang check out @Antoine Martel. He does turnkey in cleveland, memphis and birmingham. 

Birmingham, Montgomery and Huntsville. Some say Huntsville is a little over priced now, but it probably has the best chance for appreciation. 

Good cash flow in Bham. I've been told the same about Montgomery, and prices may be slightly better (lower) , but I'm not too familiar with it. 

Education is the first step. Then defining your goals. Your goals will tell you what type of investing you should begin with - buy and hold, wholesaling, flipping, etc. 

Then you should try to find people doing what you want to do and build relationships with them. Maybe you eventually partner with them on a deal or get help from them on your first deal. 

My lesson learned from my first investment was I didn't spend enough time on the first step - education. 

Yeah, I've been told it's more of a problem with vacant properties. And that's been my experience. When the neighbors know no one is living there.... 

Had another in Bessemer I almost bought, had contractor walk through it again two days before closing and someone had just broke in and pulled all the copper out. Tore out drywall and sinks and tub surrounds to get at the copper. It's a good thing we sent him back through there. I was able to back out. 

If you do it, just make sure you or someone walks it right before closing. And then get moving on it ASAP. Make sure it's clear that people are going to be there and the situation is changing. 

Crime is another problem in rough areas. You can't let them sit vacant in Birmingham neighborhoods.  I've learned that the hard way. Just got a call this morning and they stripped one of ours of everything - kitchen cabinets, sink everything, we had a bunch of doors in there they took all of them. They even cut the incoming electrical cable and ripped the electrical box off the wall. Everything was taken out of the crawlspace too - furnace, ductwork, everything gone. 

@Jason V. I'm in LA too and have been investing out of state since 2007. As 

@Brandon Sturgill stated - start with your goal and work backwards. Are you looking for cashflow? Appreciation? Both? 

One thing I've learned about investing out of state is it all comes down to property management. You better find a good one and hopefully a good backup too. 

Hit me up if you have any question or let's grab a coffee and discuss sometime. 

@Pamela Holmes I recommend  

@Mark Byers at Signal Rents. As an out of state investor, he's been very helpful to me.  

Pros - It's fun! If you like that sort of thing. And there are decent profits to be had if you buy right and have the right contractor and manage everything right. And sometimes it feels good to provide a nice home to someone. And sometimes people thank you for fixing up the neighborhood. 

Cons - Dealing with bad contractors. Flipping can tie your capital up for long periods.  Flipping income is taxed at a very high rate. Inconsistent deal flow can be an issue. Inconsistent pay days. Low appraisals. Evil inspectors. Buyers who back out of escrow. And sometimes people hate you for fixing up a neighborhood. Or your idea of fixing up is their idea of ruining it.