Help Understanding Birmingham market

8 Replies

I am considering investing in the Birmingham market and live out of state. From a distance it looks like there are some really good opportunities.  I haven't yet visited Birmingham, but want to do so with more education under my belt.  I am particularly looking for help from those who live in the area, who have lived in the area, and really know it.  I like to know which neighborhoods and suburbs are the best areas for buy and hold investments (with good returns), and which should be avoided.  Use a scale if you like of A to D, although it can certainly mean very different things to very different people, so some reason as to why you classify with.  Transition areas are also good to recognize.

Larry on your website you list several Birmingham homes for sale already. How is it that you are selling these to others as investments when you have never visited or are not sure of what the market is like there?

It is an interesting post.  @Larry Fried   I know we have discussed Birmingham in the past and you have been selling houses here in this market.

@Larry Fried  

Always happy to be of assistance.  You can get good Birmingham turnkey cash flow properties in C areas for under $40K with rents from $700-$800 and average 10% net cap or better.  You will see a lot of sec 8 tenants. Not much appreciation but buyers keep for long term cash flow.

For the B areas, you will see turnkey prices in the $55K - $75K range. Similar cap rates with rents from $875 to $1100. Appreciation and modest cash flow. Birmingham market is appreciating about 1.76% per year.

@Kevin Auyong   @J Benoit  

To be accurate, I do not sell properties, but do referrals only to what I believe might be good TK opportunities for investors - subject to investors own due diligence.  My interest in learning more about Bham is real for both myself as an investor, and to understand the market better for those I might refer.

Out of curiosity, how do you judge these to be good properties to refer to people to buy if you don't yet know the market? I personally would be reluctant to tell anyone where to buy, esp if I got a referal fee, unless I was sure about the market by having researched it and gone there myself. I own a few in Birmingham and I can tell you it literally can be block by block from acceptable to where I wouldn't buy.

@Kevin Auyong  

The answer to your question is really quite dimensional.  First, I am generally not referring to particular properties but to an investor group that is listing those properties, and always encourage anyone who is considering buying to visit the area and check out the property and provider for themselves, as part of their due diligence.  While I don't have first hand on the ground experience, I have colleagues that do, and I am partly relying on the due diligence they have done, but don't stop there, and have done and continue to do due diligence of my own on the provider, the area, and sometimes drilling down to the individual properties offered.  I started this discussion as part of that very process, because I do want to be as well informed as possible both as an investor and as someone who  refers other investors.

So, now you can help me, if you would and actually share what neighborhoods you like, don't like, and those you think are block to block.

I am curious to know the areas as well.  Can anyone provide the answers to Larrys post?

I like the direction of movement in the Eastern section of Birmingham.

Irondale, Leeds and Moody are the local cities.

Bluehouserealty, Joe Turney is who we are networking with in this area.  Also like driving for dollars as well

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