My wife and I are looking to expand our business into Huntsville, AL. We have holdings in Northwest Florida, but we'd like to get into a slightly more metro market. Does anyone have experience with mid-sized multifamily properties in this area? Looking to pick your brain on property managers and brokers in the area. Thanks for your time!
@Matthias Wilson Your best option would be to go to Huntsville, AL and attend some of the meetup groups. This way you could network with people in the area. They will be able to direct you in the right direction. I know you are from Northwest FL, but this type of boots on the ground networking will go a long way.
it’s an interesting market, try posting in its own sub forum.
Can I ask @Matthias Wilson why did you choose this market?
It has one of the best job and population growth rates in the region, as well as what seems to be some great property management options, which are appealing to a multifamily investor!
@Matthias Wilson what kind of options do you refer to?
ie. good management companies?
Rocket City Property Management impressed us and has very good reviews from investors that I've talked to about them.
@Matthias Wilson I am an investor here in Huntsville. I personally invest in SFRs here in Huntsville and I do my own property management. I have heard good things about Dennis Norton with Rocket City Property Management. As far as multifamily properties in the area there has been much appreciation in the market and has become more competitive.
I had huntsville in my sight. I visited a few multifamily properties overthere. There is one location, close to Redstone Arsenal that has tons of multifamily buildings next to each other. Driving in the neighborhood was a must to notice that. I end up not pursuing the deal because of the quantity of available units within 1 mile...
One thing I noticed...the rent is really really low and if i remember right, there was a tendency to include utilities in the rent, so I am not sure how it's cashflowing overthere. If there is any multifamily building investor here, I'd like to hear his experience!
@Charles H. I'm a Huntsville native and figured I'd help provide some local insight on the utilities deal. : ) Tenants in Huntsville are expected to be responsible for utilities. There are condos and apartment complexes that will sometimes cover things like trash and water, but that's about it. For instance, one of my properties is a condo in 35802. I pay a fixed association fee that covers normal association stuff plus all the water and trash expenses. So when my tenant starts service with Huntsville Utilities, the only thing they see on their bill is electricity. My SFR tenant gets a bill from HSV Utilities for electricity, natural gas, water, and trash. Hope that helps!! Feel free to reach out to me if you have any other Huntsville specific questions!
@Kiley N. did you buy anything in huntsville?
Many multi family building that were built in the 1960s-1970s had one water meter.
In some markets the landlord pay for it and then seek reimbursement from the tenants.
By using RUBS service.
In some markets RUBS are not common so the landlord have two options.
A. To add the estimate water usage on top of the rent.
B. Pay for it. And not bill back.
@Lane Kawaoka : Yes I did. Are you in HSV too?