All Forum Posts by: Sunny D.

Hello BPers

I just got into contract on my first out of state SFH in Hoover (Deer Valley Sub division- zip code 35226). I don't consider this a deal (multiple offers above ask) and was a traditional MLS purchase. While I have many doubts if this was the right strategy (vs. going for B/C neighborhoods), I plan to go fwd and close on this as my research made me aware of both the pros and cons of investing in Hoover despite the lower returns from cash flow point of view.

Purchase price: 174K , 20-25% down payment, traditional financing (approx 4.625% APR 0 pts 30 yr fixed)

Rent : ~1500 PM

I preferred the stability and the higher quality tenants for my first purchase. It is a new home 2004 built and am expecting min cap-ex for the next 5 yrs (inspection pending and have a contingency on it). I liked the fact that Hoover has local home purchasers rather than needing a investor to exit my purchase. Once I get familiar will branch to B areas.

Can others suggest what else I can do to make this work?

I have realized that property management is expensive in Alabama though the work to find a tenant and maintain a A neighborhood property is lesser, I may have to shell the normal (10% monthly and 1 month finder fee). 

Are there suggestions on how I can keep my costs low esp. on PM side and other things to look for in terms of the contract. 

Thanks

Great going Jordan

Would you be willing to share your marketing folks. I have been looking and working with a local realtor but no deals yet

The market for studio buyers for that size is a small segment. Most silicon valley folks would save up more to buy a larger 1BR. I would say sell it if you can get what you are looking for.

Thanks everyone. I got in touch with a realtor recommended by Terry and hopefully can find something soon. Will keep yall posted

Howard

Were you able to rent this or is it still in market. I am just thinking may be the market that can afford 1200 rent is not large enough 

thanks Terry. I am looking at a smaller home around 1000 sq ft but has 3 bd 2 bath

Hello

I am researching on Cape Coral as a rental market. What vacancy rates can I expect? Any references for good property managers in that area. Any experience from other investors who manage it out of state in that area?

#s dont look great, but is a nicer area and am seeing a few  at 1500 rent on 160K home (centre of cape coral and away from beaches).

Cheers