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Single Family 5 2022 - Present

Huntsville, AL

Purchased at $318,000, rents at $1,900/m

Interesting stuff

This is my sixth real estate investment (fifth SFR). Like with the previous three RE investments, the goal was to convert some of my business sale proceedings into real estate.

This one closed late January and if you’ve been following Huntsville up until this point (or the RE market in general), you’d know that it’s 100% a seller’s market. After many failed offers, I eventually landed a hook after first offering $15k over asking (5% at an asking of $285,000). The seller then responded to all interested parties saying they would sell it for $320,000 (12% over asking) and long story short I got it for $318,000 through a mortgage.

What’s unique is that this is the first SFR I purchased that wasn’t a cash flow move, and was instead an investment relying much more heavily on appreciation. It still provides positive cash flow after mortgage and other expenses, however it is significantly less cash flow and mostly break even from a percentage perspective.

Despite this, I felt confident purchasing it because (1) there’s almost no inventory on the Huntsville market, (2) I had been having trouble getting any offers go through, and (3) inflation was high and the value of the dollar would keep getting weaker compared to assets like real estate. As such, I’d much rather hold real estate + debt than cash and know that over time, the rental prices will increase whereas my mortgage payments will stay the same.