The BRRRR strategy — Buy, Rehab, Rent, Refinance, Repeat — is one of the most efficient ways to build a rental property portfolio. And Montgomery, Alabama might be the best market in the country to execute it, especially when you combine it with Section 8 tenants.
Why Montgomery + BRRRR + Section 8 Is a Winning Formula
Montgomery offers three things BRRRR investors need: low acquisition costs, strong rent-to-price ratios, and massive tenant demand. Single-family homes regularly sell for $70,000–$120,000, while Section 8 rents for 3-bedroom homes often reach $1,100–$1,300/month. That math works.
The waiting list for Housing Choice Vouchers in Montgomery is long — meaning there's a deep pool of qualified tenants ready to move in the moment your property passes HQS inspection.
A Real Montgomery BRRRR Example
Here's a simplified deal we commonly see our investors execute:
- Purchase price: $85,000 (3BR/1BA in East Montgomery)
- Rehab cost: $15,000 (new flooring, paint, HVAC tune-up, HQS-ready updates)
- All-in cost: $100,000
- After-repair value (ARV): $130,000
- Section 8 rent: $1,150/month (negotiated with MHA)
- DSCR refinance at 75% LTV: $97,500 loan — nearly all your capital back
- Monthly cash flow after PITIA: $350–$450
Now you repeat the process with the capital you just pulled out. That's how portfolios grow.
How James-Hawkins Supports Every Phase
Most BRRRR guides assume you're doing everything yourself. Our investors don't. Here's what we handle:
- Buy: We source deals through our acquisition network, make offers, and manage inspections
- Rehab: We coordinate renovations to meet HQS standards with our vetted vendor network
- Rent: We place qualified Section 8 tenants and negotiate the highest HUD rent rate
- Refinance: We connect you with DSCR lenders who specialize in Alabama investment properties
- Repeat: We help you find your next deal while managing your existing portfolio
Schedule a free consultation to discuss your BRRRR goals.
Questions? Let's talk.
We're here to help owners, investors, and tenants in Montgomery, AL.
Free Consultation →