All Forum Posts by: Michael S.

@Ben Feder Best use of your $1495 is to use it as part of your earnest money on your next investment property. You can get more than $1500 worth of education right here on bigger pockets, and also from a local real estate agent who specializes in investment properties.

My wife thought I was insane when my business partner and I got a contract accepted on our first investment property.  She pointed out everything that could go wrong, noted how I "didn't have time for this", and was afraid of how much money we would lose on the endeavor.  

So what did I do?  I completely ignored her and proceeded.  And with time, she has even admitted it was a wise decision.  

I would never spend that 10k on real estate education - I would spend your free time reading this site and listening to the podcasts, as well as going to your local REI group meetings. In the meantime, I would also consider finding a business partner who has assets available to use, and meet with local banks to see who would be willing to finance your first real estate purchase and possibly give you a line of credit as well should the HVAC go out or the roof need repairs. Then you can also interview local RE agents who specialize in investment properties.

Then, after you have a business partner, a lot more knowledge, a bank, and a real estate agent, you're ready to start hunting for your first property.  Meanwhile, the person that spent 10k on a guru is still stuck at square one with no assets to invest.  

You'll learn a lot more with your first investment than ANY class will teach you.  Every property we've acquired has taught us something that no "guru" would have informed us about.  First hand experience is huge.  

By the way, my current expenditures on real estate education is still zero.  If I had spent money on it, we might have missed out on our first property, which may end up being our best appreciating and cash flow property long term.

In regards to Huntsville, there are way more investors for A/B properties than there are properties available;  demand in general greatly outweighs supply right now.  You may have better luck in Birmingham right now unless you are willing to pay retail or higher in Huntsville, or willing to look at C properties.  

One of the realtors I talked to recently said OOS investors making low ball offers are simply being laughed at and not even responded to by sellers.

@Peter McDonough - I believe I walked that house too a while back.  Every room had the worst cracks I had ever seen in my life.  It looked like the house had sustained earthquake damage.

@Asa Ifill - this is not a simple repair, if it is the house I walked before it went to foreclosure. Sure, you can put piers in. But I think the issue with that property is actually the soil it was built on. There is a realistic chance that the piers will slide down in the soil as well with time. It would be worth your time and money to meet with a structural engineer and do soil testing before you close on it. Its possible the reason the bank owns it is because the owners realized how underwater they would have been on the house performing the repairs. This is the type of property that can end someone's REI endeavor very quickly.

Huntsville is not the place to look for multifamily - they are few and far between, which causes bidding wars on them;  also, the majority of them are in C/D neighborhoods.  

Is it actually in Owens Cross Roads, or in Hampton Cove?  If it is in Hampton Cove, it must be a pricing issue and/or condition of the property for only 2 showings.  

35811 is not a zip code we invest in, for what it is worth

agree with @Peter McDonough - $800 is probably best case scenario unless it is a full rehab/updated

@David Vander Pol I would strongly recommend you look at those areas first before you invest.  They are likely not at all what you expect.  The outskirts areas in your location are likely large suburbia.  Ardmore, New Market, New Hope, and Harvest are nothing like your outskirts areas.  They are quite rural locations.  You will have a very limited number of renters in these areas, and lower appreciation potential. 

Athens and Decatur are the next step closer to Madison/Huntsville - more urban, more possible renters, and likely more potential for appreciation (I personally think Athens > Decatur for appreciation)

If you want the largest renter population and appreciation potential, that's Huntsville and Madison A/B properties.  However, you will find cash flow minimal in these locations as a trade off.  

@James Wise - the market here is indeed ridiculously hot, but turnkey properties seem to be few and far between.  Lack of inventory and oversaturation of investors is probably the reason.