Who else is selling now in Huntsville or Madison, Alabama?

[Michael S.]

For my fellow Huntsville and Madison investors, I am curious to know who else is now selling one or more of their long term buy and hold properties.  

I am not referring to properties you bought for the intent of flipping.  I'm talking about a property you fully intended to hold for 10+ years.  

We have a property we bought in 2019 that we planned to hold indefinitely, as it is in a great location.  However, the appreciation on the property is now 6 figures, and it only breaks even on cash flow (granted, it is on a 15 year note).  As such, we can not justify holding it any longer, and are putting it up for sale next week after it gets repainted to show well.

We are still buying deals when they appear out of nowhere - although they have been few in 2022 (until the last month ironically - even one MLS deal which is an absolute unicorn).

I was simply curious to know how many other investors in this area have started cashing in their planned long term buy and holds.  Figured it was an interesting topic of discussion for this region. 

[Craig Stahl]

I decided to sell one in Toney and one in Meridianville that I planned on holding forever. They don't cashflow enough to pass up taking the equity now. I am also selling one in 35810 that has given me nothing but trouble. I am finding that my large 4 bed/2 bath houses in 35810 lose money. My small houses in 35810 make money.........I'm selling and taking the equity off the table. With profits from these 3 I will be able to lose $420,000 in mortgage debt and payoff 2 mortgages on other properties. I may be wrong but I suspect we are at the top in Huntsville and want to be in a stronger position to ride out possible recession........although Huntsville's economy is booming.

[Nikki Yankowski]

Thank you for sharing. I saw those two 4 plexes by Sparkman and 72 just list for the 400s. First time I've seen something like that on MLS.

Post note: I am hearing rumors about the the city of Huntsville passing a zoning law against SF purchases for investments. I haven't had time to follow up on this, but if you do please let me know!  

[Vatsal Patel]

Quote from @Nikki Yankowski:

Thank you for sharing. I saw those two 4 plexes by Sparkman and 72 just list for the 400s. First time I've seen something like that on MLS.

Post note: I am hearing rumors about the the city of Huntsville passing a zoning law against SF purchases for investments. I haven't had time to follow up on this, but if you do please let me know!  

Where are you hearing that from?

[Peter McDonough]

Quote from @Nikki Yankowski:

Thank you for sharing. I saw those two 4 plexes by Sparkman and 72 just list for the 400s. First time I've seen something like that on MLS.

Post note: I am hearing rumors about the the city of Huntsville passing a zoning law against SF purchases for investments. I haven't had time to follow up on this, but if you do please let me know!  

Zoning against SF for investment?  What are you talking about?

[Gorden Lopes]

For a buy and hold investor (like me), the rising interest rates have definitely put some brakes on the buying new properties but I have not considered selling any of my properties yet and the main reason for that is I have no better investments lined up for that cash...stock market outlook is not that great either.

@Michael S. are you planning to reinvest the profit back into Real estate? How about just having a line of credit on the gain and using that for any future deals?

[Michael S.]

@Nikki Yankowski - I have heard rumors about new STR zoning restrictions/laws for the city of Huntsville, but these are only rumors to my knowledge. I have heard nothing in regards to SFHs - I suspect you meant STRs with your comment above.

@Gorden Lopes - planning to pay off 1-2 notes that are getting close to their balloon date, so that we don't have to refinance them right now, and can just have straight cash flow on a few properties at present.  

[Ruth Blue]

@Michael S.

We have decided to sell 2 properties this year. One is in South Huntsville in Chaffee area and one is in Madison. Both sold for a nice profit. We did a 1031 exchange into a condo in Destin, FL.

We felt since holding them for over 7 years it was time. We will again purchase when deals present themselves but LOVE the stability of the area.

[Nikki Yankowski]

Quote from @Michael S.:

@Nikki Yankowski - I have heard rumors about new STR zoning restrictions/laws for the city of Huntsville, but these are only rumors to my knowledge. I have heard nothing in regards to SFHs - I suspect you meant STRs with your comment above.

@Gorden Lopes - planning to pay off 1-2 notes that are getting close to their balloon date, so that we don't have to refinance them right now, and can just have straight cash flow on a few properties at present.  

Just want to follow up on this. I had a walk in (I sit in a model home) who told me others within city limits were restricted from selling to him as investor. I may have mis-understood this, it could be builder specific. I was hoping maybe others on here had heard more.  

[Michael S.]

@Nikki Yankowski - this is builder specific, and I have heard this as well. Several builders won't sell to investors or anyone buying a property with an LLC here. I inquired about one a year ago, and was told they wouldn't talk to me since I was not interested in it as an owner-occupied property.

[Alex Olson]

Are you staying in your home market or looking at out of state?