All Forum Posts by: Michael S.

35805 is a very diverse zip code in Huntsville - it includes everything from up and coming neighborhoods to D neighborhoods that are some of the rougher ones in Huntsville. We do own one SFH in 35805, but it is within a specific pocket of the zip that we are comfortable with and has been appreciating in value.

Do NOT buy anything in 35805 without seeing it for yourself, and without working with someone local who knows the city. Personally, I wouldn't recommend multi-family in 35805 unless you are going to manage it yourself and you are an experienced REI with resources for problem tenants that may destroy part of the property. I know several property managers here that won't manage MFHs in 35805. Good luck with your decision.

We don't consider any properties in 35810 or 35816 whatsoever;  35811 has some pockets that are ok.  

And yes, there are C and even D neighborhoods here in Huntsville.   

@Ben McMahon  You are also not taking into consideration the time value of money at all in this equation.  Our agent spends many hours helping us find deals, on the phones, coordinating everything up through, and including, closing.  I have no idea how many hours she spends doing these things. . .but I do not spend my hours doing this.  Instead of doing these things, I spend the hours working and making money.  Since she is a buyers agent, her efforts cost me nothing directly out of pocket.  So by having an agent, I earn money during all the hours I would have spent coordinating all the other aspects of the deal, and get her experience and insight as well.  Not a bad move for someone like me who's supposedly "ignorant".

@Jeremiah House - 15 years at 3.125% seems like a great deal to me, but we haven't done any refi loans ourselves - if you don't mind, shoot me a DM on which lender, or your lender contact, that is offering this if possible.  I'm curious.  

Cash is king right now - having a line of credit to pay for a house with cash is a wise approach in my opinion.  Just make sure your finances are in order before you make the offer - things have changed so dramatically in the past few weeks, that debt availability is becoming more scarce for investors than just one month ago.  Good luck.   

The biggest question I have not seen brought up in the Huntsville forum is Lowe Mill.  There has been a lot of push for properties in that area - with all the non-essential business shutdown, I expect the momentum in the Lowe Mill area to slow dramatically for a while.  Of course, I could be completely wrong, but I think that area sees the biggest real estate slow down in Huntsville/Madison.  I could see big firms still buying properties, boarding them up, and sitting on them for the next 3 to 6 months.

Demand for any real estate in this area is still absolutely crazy; I am not in the MFH market (only do SFH), so I can't give you specific thoughts on how MFH will hold up over the next 90 days. That said, if the numbers work...

There is no "plan B". The plan remains the same now as it did years ago - generate revenue from the W-2 job, use the capital to support our LLC properties should we see the need for repairs or defaults occur on rental payments, use the capital to find deals as they occur, and avoid becoming over leveraged.

As my business partner and I both have full time W-2 jobs not in the field of real estate, having our agent has been quite essential in the growth of our LLC's property holdings, as well as finding us off market deals. We will continue to have her as our agent indefinitely. I could see where someone who does real estate full time may no longer need an agent; but for us, she is an essential part of the "team".

Since you seem conflicted to sell at an offer of 40k, then counter the buyer with an offer to sell at 50k.  Worse thing they can tell you is no, and then you move forward with your planned rehab.  

Huntsville/Madison Alabama remains a ridiculously strong sellers market.  Inventory remains non-existant.