All Forum Posts by: Silas B.

Getting pre approved in the Alabama area.

Who has the best interest rates? 

Looking at a conventional loan, 20% (or less if possible) down

Thanks in advance!

Hi all!

We just purchased our first out of state rental home late last year, a 3 bed 2 bath, in Alabama, and did  conventional loan and 20% down. House was in decent shape but needed some work which I did all myself (painting, counters, hardware, etc). We are right about in the 1% rule. We got a great property manager and first tenant just moved in. So far so good!

My question, with interest rates probably going to rise, and home prices seem to keep going up, should I purchase sooner then later? Or wait till a slow time (fall or winter) to purchase the 2nd one? I am out of state so that complicates things slightly too. 

Thanks!

Hi all!

Purchased our first rental home this year using a conventional loan. 

When it comes to (Taxes) Capital Expenditures - 

1) Is travel to remodel the house (had to fly and rent a car) considered part of CapEx?

2) Are utilities used during remodel considered part of CapEx? Or should they be deducted as expenses?

3) What about food while out of town for remodeling? (I did the work myself, so I had to buy food and gas while out of state).

3)The house has only been available for rent 8 days this year. Should I just start depreciation next year (house is not rented yet). So its "Available" but really its just been the end of the year.

Thanks in advance!

I am getting super close to getting a cash flow rental property in Alabama but I have a few questions:

1) Property Management. Its tough to find a property management company that will manage homes that bring in less then 1000 a month. Any other options or ideas?

2) Insurance. I was planning on having landlord insurance but should have some sort of insurance to cover (accidental or intentional) tenant damage (let's say the damage destroys the kitchen and I gotta pay 20K for a new one). What's the best thing for this? I would like the tenant to have renters insurance too.

3) Lawn or landscape care. Should I have someone mow the lawn every week? Should the tenant do this? What's best?

4) Cash flow. Looking at homes around 100K or under that rent for 900 or 1000. By the time you have the morgage, taxes, and insurance and property management there seems to be not a lot of profit (300ish a month). What's best in this situation, a bigger down payment? Increase the rent slightly over market value? Other ideas? Or is that seem about right ($300)? I could put alot more cash down (20%+) but wanted to have reserves to fix anything after the house is purchased or if something breaks a year in (HVAC, water heater, repairs, fences, etc).

Appreciate the info! Hows the rental market right now in 2021, still lots of demand from what I see but this my first time getting anything in that area. Looking at a home under 75K for now in Centerpoint or one of the other suburbs. 

Hi all! We are about to get our FIRST rental home and then the next step is getting it rented. I am doing this from out of state and any advice on what is needed or how to structure things would be great.

Landscaping service, should I provide this for the tenant or should the tenant do it? I like the desert landscaping of multch, rocks, and plants that use little water but not sure if that is a good option for Birmingham AL?

Liability, should I get some sort of general liability insurance or is landlord insurance enough? Homeowner / Landlord insurance good? Other options?

Property management, since it's out of state, it seems obvious to have management. Any advice on how to choose a good company besides seeing the google reviews?

The area is Birmingham AL.

Any other advice? Thanks so much!

Hey all! I am looking for 2021 home owners / land lord insurance for Birmingham, AL. What's the going rate these days? The home value will be under 100K. Thanks!

Thanks everyone for the info! Much appreciated. I will keep looking and see if the right deal comes along. Any advice for local competitive lenders is great too. Thanks so much!

What are some good areas for single family homes? Looking at crime maps and data online but its always nice to see what people think? Think long term families or couples going to the University as far as tenants. 

I am out of state and we are looking to get a single family home as a long term rental investment property and I was curious if the demand for rent was high currently, if single family homes were better vs duplexes, and any recommendations for lenders, agents, handymen, management companies, and any other useful information such as good locations of the city (I have been looking at the crime maps lately and it seems the western side of the city has less crime for what its worth). I see homes around 120K and possible rent is around 1200 - 1400 for a decent sized 3 bed 2 bath 1300 to 1500 sft home. Any advice is reallyappreciated!!