All Forum Posts by: Linnea Minnema

@Jessica Rhodes  Roofstock should guarantee their properties - I think there is something on their website about this.  If it's a turnkey property, you should either be OK or able to back out. 

@Nick Dahal  

If I were just starting, I would do exactly what @Donnie M. suggests and house hack.  Once you park all of your capital in a house, you're starting from scratch again.  This is what I have done for 4 years now and it's a slow, slow process.  

Curious about what being a "passive" vs. "active" investor means to you? I think everyone has a different definition that is specific to them and to their situation.  What's yours?

@Miranda McKenzie

I don’t personally invest in Eastlake, but I have a friend who does. He has pretty constant headaches with them, but his goal is to do his part to rehabilitate the area and put good quality homes into a rough part of town. It’s a D class area, really high poverty, the houses are in terrible shape, schools are not good, and the crime levels can be high.

With that being said, Eastlake needs investment to ensure families who live there have safe, sturdy homes to live in. You can buy homes for very little money, do significant renovations and watch out that you don’t over-improve for the area. If you screen tenants well/interview prop mgt companies who will work in that area and share your vision, it’s an area where you can “Do Good” and also “Do Well”. Don’t expect appreciation, cash flow will be your best strategy!

@Miranda McKenzie are you local to Bham?

@Tyler Kuyrkendall

Good work-I think putting your own eyes on it is the best policy when dealing with possible gentrification. It might be a long game for appreciation in Oak Ridge Park, but could still be good for cash flow in the interim!

@Robert Duffer Have you previously invested in Birmingham?

Pressure!!!! :-) Which specific area of Birmingham?  And what is your "other" area?

I live in Birmingham and invest here. Crestwood is HOT right now for owner occupants, as folks are priced out of Forrest Park and Avondale, but still want to live close to all the cool things happening in that area of town/want to be close to work in downtown Bham. I think you may have a good shot with the Oak Ridge Park area, but be aware that you're heading into C and D class areas. Anything on the other side of I-20 is going to be a much higher-crime area - anything close to Eastlake falls into that category. Be very, very careful with your comps. I'm currently in a "fight" with an appraiser on a BRRRR property north of town because he didn't pull the same comps that I was looking at and valued my property very low. Trying to fix that now...

The difference between a BRRRR property in Chelsea and attempting the same system on a property in Birmingham city is significant. Few houses in Chelsea are more than 30 years old, but Bham city will have 100+ year old properties and not a lot newer than mid-century. School district is HUGE here in Bham, as most of the outlying districts are very, very good, and the Bham City schools are very, very poor.

Bottom line - deals exist, but be careful and talk to a local agent who specializes in that area.  

I live in and invest in Birmingham, AL.  As is the case in a lot of major cities, the market here is very, very hot for investors right now.  Good deals are hard to come by and almost always involve multiple offer situations.  Individuals are competing with hedge funds.  It's possible to invest here and make good cash flow, but I wouldn't call it "under the radar" anymore.  

Well done! That sounds like a great BRRRR. What's your cash flow per month?