Investor · Peoria, AZ · Member since 2017 · 20 posts · 4 votes
I am Bariso Sora.I am new to real estate business. Is multi family real estate investment in Birmigham area is good investement? which part of city(location)is good for rental real estate(multi family,apartment,condo)?Thank you for your information and help.
Birmingham is a great place for a newbie to start! I'm fairly new, and I have purchased two multifamily properties in the surrounding Birmingham areas.
I agree with @Dan Handford that in the city limits of Birmingham is very hyperlocal. For example, the Avondale area has seen crazy good appreciation; somewhere around 40% in the last 2 years. However, a house located just a few streets over; is a high crime, bad place to invest. Although downtown is seeing a re-vitialization, the suburbs are probably the best place to invest for a newbie not intimately familiar with the Birmingham market.
Your Question is really open ended, I will try to answer them however.
1. Is multi family real estate investment in Birmingham area a good investment.
Yes, Birmingham performs similarly if not better than many markets using many metrics, such as cap rate - cash on cash return and has solid ROI.
Birmingham also has a lower margin of entry Cash wise to most other markets. Birmingham is also a very newbie friendly market I've found as I've tried to leave Birmingham for other markets.
2. Which part of the city is good for rental real estate? All of the city. MY PERSONAL mantra is its all good as long as the numbers work. You can pick up cheap duplexes and triplexes in Birmingham which will cashflow in month 1. I've bought all over jefferson county and shelby county, and All things seem pretty equal as long as you buy low enough.
Birmingham is a great place for a newbie to start! I'm fairly new, and I have purchased two multifamily properties in the surrounding Birmingham areas.
I agree with @Dan Handford that in the city limits of Birmingham is very hyperlocal. For example, the Avondale area has seen crazy good appreciation; somewhere around 40% in the last 2 years. However, a house located just a few streets over; is a high crime, bad place to invest. Although downtown is seeing a re-vitialization, the suburbs are probably the best place to invest for a newbie not intimately familiar with the Birmingham market.
@Akin Okegbile,@Dan Handford and @Scott Starkey thank you so much for your information and help.
@Dan Handford I am looking for 4 unit below $100000 with good cash flow. I am ready to invest if I find what I am looking for. Based on reply Birmingham is good area especially for newbie which is great. I need your assistance and encouragement to move from my comfort zone and try something new.
I am Bariso Sora.I am new to real estate business. Is multi family real estate investment in Birmigham area is good investement? which part of city(location)is good for rental real estate(multi family,apartment,condo)?Thank you for your information and help.
Welcome to the site Bariso. Birmingham like most other Midwestern markets in the USA features low price points with high rents. What is most important is actually what and where you buy in each of these markets as opposed to which market you do buy in. What I mean by that is the neighborhoods you invest in and the type of property you choose to buy in a particular market are much more important to your portfolio's results than the market itself. For more info on the particular neighborhoods in the Birmingham, Alabama metro market take a look at The Ultimate Guide to Grading Birmingham, Alabama Neighborhoods.
@James Wise That is an awesome article and we actually used it when we went to visit Birmingham to meet some new team members and take a glance at the market. Would love to connect and share ideas / thoughts about the market and neighborhoods!
I am Bariso Sora.I am new to real estate business. Is multi family real estate investment in Birmigham area is good investement? which part of city(location)is good for rental real estate(multi family,apartment,condo)?Thank you for your information and help.
I would also look at the Tuscaloosa area. Last time I checked, there were several properties that met your criteria. It being a college town is a plus in down markets.
@James Wise That is an awesome article and we actually used it when we went to visit Birmingham to meet some new team members and take a glance at the market. Would love to connect and share ideas / thoughts about the market and neighborhoods!
Glad you liked it. I also have one for Cleveland, Ohio and am in production on one for Memphis and Indianapolis so stay tuned.