BiggerPockets

In about four hours I'll be traveling to Birmingham, AL to scout for properties. I will be looking at more than sixty properties ranging from $4,500- $35,000
For details, go to
http://www.biggerpockets.com/forums/69/topics/42138-announcing-birmingham-alabama-properties-fishing-expedition-

Best luck. Here's hoping you find a bunch of really good deals on good properties.

Good speed Eddie :).

-Uwe

Originally posted by NC Mark

And why Birmingham?

I generally ignore wikipedia for real information except for information on evaluating cities. They pool all the info on demographics very well onto one page: http://en.wikipedia.org/wiki/Birmingham,_Alabama

One thing about Birmingham and "rednecks".....they haven't mixed well in the city itself since the 60s.... :wink:

Originally posted by NC Mark

Well I like the figures you posted elsewhere on your properties, Eddie.

What is the small fee? And what are you paying your PM?

And why Birmingham? Obviously you're getting good cash flow there, but what are the demographics and future growth prospects?

Oh, and if you buy just one more property in Birmingham you will qualify as an honorary Red Neck and be entitled to a free chewing tobacco cap!.....

Ok, 1st thing first. The fee is $1,500 per purchased property and it will be a "hand holding" process which will include not only a list of investment-worthy properties, photos and posted videos but also, the team behind it including PM, contractors, sub contractors, insurance services, law firm, and RE agent for the paperwork. All tested and people I have used for my properties.
The PM charges 8% flat. No vacancy fees and no new tenant fees.
Why Birmingham? Here is why:
Birmingham enjoys a steady economy that doesn't boom or bust
University of Alabama Birmingham (UAB) is one of the largest universities in the country and the biggest employer in Birmingham.
Many medical facilities and medical research firms are located there.
Many law firms made their home in Birmingham.
Increasing population that relies on government help for housing assistance.
Abundance of inexpensive properties that can turn into solid rentals at minimum costs.

http://money.cnn.com/galleries/2009/real_estate/0910/gallery.housing_price_forecast/7.html

And regarding the honorary Red Neck... I'm already testing my new Moonshine brewery in my back yard.... Shhhh. Don't tell the ATF... :wink:

How do you handle Alabama's "right of redemption", in which a foreclosed homeowner has the right to buy the property back within 12 months?

I supposed if the right is priced much higher than the property is currently worth you would be ok. Is there a way to find that out?

Originally posted by NC Mark

Interesting link, Tim. A quick glance makes me like what I read about Birmingham -- or at least the suburbs. I've got my eyes open for alternate areas as I watch the Neighborhood Nazis and Landlord control freaks grow in strength around where I'm at.

Do you invest there?

Not personally but I did research it. The only reason I don't is because of a matter of pure distance from where I currently live. Eddie's research on it is good. From what I see about it, it's generally Detroit type investing without the state level fiscal irresponsibility of Michigan. Alabama's a pretty good state from an income and estate tax perspective too.

I'm just about to wrap it up here in Birmingham, I spent the whole week here going through some 68 properties. I narrowed it down to 11 properties that I think worth investing in.
I'm still compiling all the info, photos, etc. I'm traveling back to LA tomorrow afternoon. I plan to organize all of it on Sunday and get it out there. The one that feels like urgent is this one because it is a great property that the price has been reduced today from $14,900 to $9,900 and I'm afraid that it will go quickly.
It is a two bedroom and one bath, but the basement has a complete one bedroom apartment by itself with its own bathroom, a kitchen, living-room,and separate entrance which means two rent checks or one bigger one.
It is situated on a quiet street of a low income, nice neighborhood. The house is up the hill and a way from the street which gives even more sense of security.
Rehab:
There is lots of moisture in the lower apartment (Not mold, I didn't smell any) but signs of moister and wood panels buckle. That will need to be dealt with which could be around $5,000 including a sump pump installation ( I spent $5,250 on it in one of my properties.) Other than that, I think maximum of another $2,500 (Painting, cleaning, etc).
If plumbing and roof need replacing, ( I didn't spot any leaks and it was pissing rain the day before I saw it - just playing worst case scenario) it'll be another $6,500.
So, even if you pay full price and you add another $14,000 then for a total of $23,900, I figure you get $450 for the upstairs and $300 for the downstairs, that $750 a month!!! It's way over 2%.
Taxes for 2008 were $988.00
Property insurance is around $750 annually
Let me know if you're interested. I have photos and I also shot a video, but the lower part of the house was too dark and the kitchen was too dark as well.