1031 deadline approaching - Huntsville / Birmingham - Help please

11 Replies

This is my first time expanding my portfolio - doing a 1031 exchange. Was focusing on Huntsville and Birmingham area- (I have a few properties already identified and on hold - paperwork not submitted yet). 

Truth be told - as deadline approaches (Oct 24th)...I started getting second thoughts about the area - I haven't spent too much time there and began searching "everywhere". I have family and friends in the area an am relocating east (Prob NC) in about 6 months to be closer so this is an OOS investment - mostly - for now. -But my original property was OOS for over a decade, so I've experienced the ups and downs.

Any thoughts or opinions about investing in Huntsville or Birmingham?

Thanks in advance,

Rob

Huntsville is on the move and although deals are harder to find (especially flips), buy and hold seems to be strong and all indications show it will be for quite some time.

Job growth, nationally recognized cost of living scores and rent and property value appreciations are a few important indicators that Huntsville is a win. 

Originally posted by @Robert Duffer :

This is my first time expanding my portfolio - doing a 1031 exchange. Was focusing on Huntsville and Birmingham area- (I have a few properties already identified and on hold - paperwork not submitted yet). 

Truth be told - as deadline approaches (Oct 24th)...I started getting second thoughts about the area - I haven't spent too much time there and began searching "everywhere". I have family and friends in the area an am relocating east (Prob NC) in about 6 months to be closer so this is an OOS investment - mostly - for now. -But my original property was OOS for over a decade, so I've experienced the ups and downs.

Any thoughts or opinions about investing in Huntsville or Birmingham?

Thanks in advance,

Rob

 You'll want to give The Ultimate Guide to Grading Birmingham, Alabama Neighborhoods a read. Tons of good info in there for you to digest.

@Caleb Bryant , Thanks for the intel! 

From what I've read, that's definitely good advice. I'm gonna dive into the areas a bit more, I'll be visiting a cousin - lives in Vestavia Hills (?)...hopefully in the coming weeks and learn more about the area directly. 

@James Wise Thanks for the information on Alabama! Very insightful and I received it just in time! It touched on all the areas I was searching in...thankfully it appears I'm in the B class. with my potential opportunities.

Thanks again!

- All the best!

Rob

In regards to Huntsville, there are way more investors for A/B properties than there are properties available;  demand in general greatly outweighs supply right now.  You may have better luck in Birmingham right now unless you are willing to pay retail or higher in Huntsville, or willing to look at C properties.  

One of the realtors I talked to recently said OOS investors making low ball offers are simply being laughed at and not even responded to by sellers.

I have wholesale contract available in Grayson valley (B area according to James’ guide) if you’re looking for more properties