Best areas in Alabama for rental property appreciation
Member since 2021 · 33 posts · 7 votes
Best areas in Alabama for rental property appreciation
Most Popular Reply
Dylan ThomasBusiness Member
Real Estate Agent · AL · Member since 2021 · 90 posts · 44 votes@Account Closed
The Mobile County and Baldwin County areas, located next to each other, have historically had great appreciation rates. Baldwin County has two main areas that I would look into:
Daphne-Spanish Fort-Fairhope areas and the beach areas of Gulf Shores and Orange Beach
There are also multiple areas of Mobile that make for great appreciation plays:
Spring Hill, 36608
Midtown
West Mobile
Saraland is right outside of Mobile and is growing rapidly as well
30 Replies
- 3yGreg ParkerBusiness MemberRealtor, Contractor, Property Manager · Montgomery AL and Kowaliga, AL · Member since 2017 · 670 posts · 536 votes
Montgomery is still having good appreciation.
MGM Property Pros LLC - Rental Property Investor · Huntsville, AL · Member since 2015 · 401 posts · 309 votes3y
@Florencio Nayve Huntsville (Madison county) is your best bet in my opinion. Birmingham MSA has some spots where you can win but if you have to know that market well to win. I can’t speak for mobile, and I don’t touch Montgomery whatsoever haha
- 3yDylan ThomasBusiness MemberReal Estate Agent · AL · Member since 2021 · 90 posts · 44 votes
@Account Closed
The Mobile County and Baldwin County areas, located next to each other, have historically had great appreciation rates. Baldwin County has two main areas that I would look into:
Daphne-Spanish Fort-Fairhope areas and the beach areas of Gulf Shores and Orange Beach
There are also multiple areas of Mobile that make for great appreciation plays:
Spring Hill, 36608
Midtown
West Mobile
Saraland is right outside of Mobile and is growing rapidly as well
- Member since 2021 · 33 posts · 7 votes3y
Quote from @Greg Parker:
Montgomery is still having good appreciation.
Thanks Greg! I will look into it.
- Member since 2021 · 33 posts · 7 votes3y
Quote from @Caleb Bryant:
@Florencio Nayve Huntsville (Madison county) is your best bet in my opinion. Birmingham MSA has some spots where you can win but if you have to know that market well to win. I can’t speak for mobile, and I don’t touch Montgomery whatsoever haha
Thanks Caleb! Yes, I heard good things about Huntsville. I’m just wondering why you would not touch Montgomery?
- Member since 2021 · 33 posts · 7 votes3y
Quote from @Dylan Thomas:
@Account Closed
The Mobile County and Baldwin County areas, located next to each other, have historically had great appreciation rates. Baldwin County has two main areas that I would look into:
Daphne-Spanish Fort-Fairhope areas and the beach areas of Gulf Shores and Orange Beach
There are also multiple areas of Mobile that make for great appreciation plays:
Spring Hill, 36608
Midtown
West Mobile
Saraland is right outside of Mobile and is growing rapidly as well
Thanks for your advice! Are Bay Minette and Foley good areas?
- Member since 2021 · 33 posts · 7 votes3y
Quote from @Dylan Thomas:
@Account Closed
The Mobile County and Baldwin County areas, located next to each other, have historically had great appreciation rates. Baldwin County has two main areas that I would look into:
Daphne-Spanish Fort-Fairhope areas and the beach areas of Gulf Shores and Orange Beach
There are also multiple areas of Mobile that make for great appreciation plays:
Spring Hill, 36608
Midtown
West Mobile
Saraland is right outside of Mobile and is growing rapidly as well
Thanks for your advice! Are Bay Minette and Foley good areas?
- 3yDylan ThomasBusiness MemberReal Estate Agent · AL · Member since 2021 · 90 posts · 44 votes
Quote from @Account Closed:
Quote from @Dylan Thomas:
@Account Closed
The Mobile County and Baldwin County areas, located next to each other, have historically had great appreciation rates. Baldwin County has two main areas that I would look into:
Daphne-Spanish Fort-Fairhope areas and the beach areas of Gulf Shores and Orange Beach
There are also multiple areas of Mobile that make for great appreciation plays:
Spring Hill, 36608
Midtown
West Mobile
Saraland is right outside of Mobile and is growing rapidly as well
Thanks for your advice! Are Bay Minette and Foley good areas?
@Account Closed
It depends on exactly what you’re looking to do.
Bay Minette is very rural and lower income. I generally would say that I wouldn’t be interested in Bay Minette for appreciation. You can find lower priced homes in that area, which sometimes makes it easier to hit the 1% rule that many people try to use. That’s probably a good place if you’re looking to invest in land. The Baldwin Country area is growing extremely quickly, and eventually they will run out of room at the beach and the Eastern Shore and will have no choice but to expand north in that direction. But that could take decades and not really what it sounds like you’re interested in.Foley is starting to grow quickly right now. There is a ton of new construction because developers are having to start moving away from the beach areas. So in one way yes, but in another way no. Because all these new construction homes were either started or finished during high inflationary times in regards to both materials and general real estate. That means that they are going for higher prices at the top of a market cycle. Over the long run everything appreciates, but there will be a dip coming in some capacity so I’m not sure that fits either.
You can obviously find individual deals just about anywhere, but these are observations of the places as a whole
- Member since 2021 · 33 posts · 7 votes3y
Quote from @Caleb Bryant:
@Florencio Nayve Huntsville (Madison county) is your best bet in my opinion. Birmingham MSA has some spots where you can win but if you have to know that market well to win. I can’t speak for mobile, and I don’t touch Montgomery whatsoever haha
Caleb, what do you think of Eva area and New Market? Are they good areas that will give good appreciation in the future? Thanks so much for your response.
- Investor · Huntsville, AL · Member since 2015 · 149 posts · 80 votes3y
@Florencio Nayve yes. The vast majority of Madison, Morgan, and limestone counties should be prime appreciation plays over the next few years.
- Member since 2021 · 33 posts · 7 votes3y
Quote from @Chris Mignone:
@Florencio Nayve yes. The vast majority of Madison, Morgan, and limestone counties should be prime appreciation plays over the next few years.
Thanks Chris for the information! I'm presently deciding if I buy a property around Huntsville area or in the Gulf Coast area near the beaches. Which do you think is better?
- Rental Property Investor · Honolulu, HAWAII (HI) · Member since 2011 · 4k+ posts · 2k+ votes3y
Back in 2012, I started investing in turnkey rentals in Birmingham, and I even ventured into Indianapolis, Atlanta, and Pennsylvania. At one point, I owned four properties in Birmingham, but I eventually sold them between 2016 and 2019. During that time, I began exploring syndications and private placements, focusing on buying apartments in Huntsville, Alabama. Bham was good to start to buying rentals for beginning investors.
Now, Huntsville may have been smaller in terms of population back then, but things have drastically changed. It has actually surpassed Birmingham in terms of population growth, which is quite impressive. Initially, around 2015, people predicted that Huntsville would reach that milestone around 2025 or 2030. The city's rapid development can be attributed to the abundance of white-collar jobs, and it's often said that they have the highest per capita number of engineers or individuals with higher-level degrees. It's like the Austin, Texas of Alabama, if you will, but on a smaller scale.
Regarding Montgomery, Alabama, I don't have much information about the city's real estate market. It is the capital, but I've heard that rental evaluations aren't as strong there compared to Huntsville or Birmingham. As for my own investments, I also purchased some properties near Mobile, Alabama. We even bought a couple of apartments in Gulfport, Mississippi, and ventured into mobile home parks in Gulf Shores, Alabama. However, I would advise staying away from anything located a hundred miles south of Birmingham due to the risks associated with the Gulf area, including parts of Louisiana, southern Mississippi, and southern Alabama. Trust me on this one, just take a look at the skyrocketing insurance rates in those regions.
- Member since 2021 · 33 posts · 7 votes3y
Quote from @Dan H.:
Best location in Alabama for appreciation potential is Gulf Shores. Beach front is rare and has appreciated well for 50 years and likely will be appreciating well 50 years from now.
Good luck
Thanks Dan for the advice! I agree, properties near the water appreciate well as more people like to be close to the beach.
- Member since 2021 · 33 posts · 7 votes3y
Quote from @Lane Kawaoka:
Back in 2012, I started investing in turnkey rentals in Birmingham, and I even ventured into Indianapolis, Atlanta, and Pennsylvania. At one point, I owned four properties in Birmingham, but I eventually sold them between 2016 and 2019. During that time, I began exploring syndications and private placements, focusing on buying apartments in Huntsville, Alabama. Bham was good to start to buying rentals for beginning investors.
Now, Huntsville may have been smaller in terms of population back then, but things have drastically changed. It has actually surpassed Birmingham in terms of population growth, which is quite impressive. Initially, around 2015, people predicted that Huntsville would reach that milestone around 2025 or 2030. The city's rapid development can be attributed to the abundance of white-collar jobs, and it's often said that they have the highest per capita number of engineers or individuals with higher-level degrees. It's like the Austin, Texas of Alabama, if you will, but on a smaller scale.
Regarding Montgomery, Alabama, I don't have much information about the city's real estate market. It is the capital, but I've heard that rental evaluations aren't as strong there compared to Huntsville or Birmingham. As for my own investments, I also purchased some properties near Mobile, Alabama. We even bought a couple of apartments in Gulfport, Mississippi, and ventured into mobile home parks in Gulf Shores, Alabama. However, I would advise staying away from anything located a hundred miles south of Birmingham due to the risks associated with the Gulf area, including parts of Louisiana, southern Mississippi, and southern Alabama. Trust me on this one, just take a look at the skyrocketing insurance rates in those regions.
Thanks Lane for the great advice and information! I will definitely weigh things regarding the environmental risks and the insurance costs.
- Investor · Jackson, MS · Member since 2014 · 1k+ posts · 769 votes3y
Quote from @Dan H.:
Best location in Alabama for appreciation potential is Gulf Shores. Beach front is rare and has appreciated well for 50 years and likely will be appreciating well 50 years from now.
Good luck
You assume beach front properties will still be there in 50 years. Probably not the same ones that were beach front now.
- Huntsville, AL · Member since 2018 · 579 posts · 864 votes3y
@Account Closed noted, North Alabama has a lot of appreciation potential in the near future. As far as potential, Madison county would be first without a doubt, then Limestone county. Morgan county (and the city of Decatur especially) have really lagged in appreciation compared to the other two counties mentioned, and I actually think Decatur could get passed by Athens proper in the next decade population wise. So I'd view Morgan county as more a cash flow play than appreciation play. I think Marshall county will appreciate far more than Morgan and Jackson counties in the next decade.
I view Gulf Shores as higher risk/higher reward - appreciation potential is definitely higher, but risk is much higher to get wiped out as well; basic costs (rehab, insurance, etc) will be much higher as well, but so will rental amounts.
- Member since 2021 · 33 posts · 7 votes3y
Quote from @Michael S.:
@Account Closed - to add to what @Chris Mignone noted, North Alabama has a lot of appreciation potential in the near future. As far as potential, Madison county would be first without a doubt, then Limestone county. Morgan county (and the city of Decatur especially) have really lagged in appreciation compared to the other two counties mentioned, and I actually think Decatur could get passed by Athens proper in the next decade population wise. So I'd view Morgan county as more a cash flow play than appreciation play. I think Marshall county will appreciate far more than Morgan and Jackson counties in the next decade.
I view Gulf Shores as higher risk/higher reward - appreciation potential is definitely higher, but risk is much higher to get wiped out as well; basic costs (rehab, insurance, etc) will be much higher as well, but so will rental amounts.
Thanks Michael for the information! I'm still deciding to buy a property either in Madison county or in Gulf shores area. Thanks again for giving me some great points to consider.
- Realtor · Gulf Shores, AL · Member since 2020 · 153 posts · 76 votes3y
Hard to find better appreciation rates than in historically hot tourism destinations. For that reason, id say Gulf Shores. Im also biased though, but while most other hot markets have appreciated 30-40% over the past couple years, several Gulf Shores properties have appreciated even 100% or more, and there is still a ton of opportunity for it to keep growing rapidly.
- Member since 2021 · 33 posts · 7 votes3yThanks Ben for the information! You're right, the appreciation rate is faster compared to other areas because it's a tourist destination.
Quote from @Ben Scarborough:
Hard to find better appreciation rates than in historically hot tourism destinations. For that reason, id say Gulf Shores. Im also biased though, but while most other hot markets have appreciated 30-40% over the past couple years, several Gulf Shores properties have appreciated even 100% or more, and there is still a ton of opportunity for it to keep growing rapidly.
- Rental Property Investor · Orange County, CA · Member since 2016 · 740 posts · 529 votes3y
I have properties in Bham, montgomery and a few others. Are you looking to buy something already done for you? Or are you doing the work yourself? I have loads of contacts for you and the good- bad and ugly on who is good and who is not! Message me if you want the low down!
- Member since 2021 · 33 posts · 7 votes3y
Quote from @Melissa Nash:
I have properties in Bham, montgomery and a few others. Are you looking to buy something already done for you? Or are you doing the work yourself? I have loads of contacts for you and the good- bad and ugly on who is good and who is not! Message me if you want the low down!
Thanks Melissa! I just bought a couple of turnkey properties in the Gulf shores area, so I'm all set for now. I'm planning to buy more in the future but probably in Florida or Texas.
- Realtor · Gulf Shores, AL · Member since 2020 · 153 posts · 76 votes3y
Quote from @Account Closed:
Quote from @Melissa Nash:
I have properties in Bham, montgomery and a few others. Are you looking to buy something already done for you? Or are you doing the work yourself? I have loads of contacts for you and the good- bad and ugly on who is good and who is not! Message me if you want the low down!
Thanks Melissa! I just bought a couple of turnkey properties in the Gulf shores area, so I'm all set for now. I'm planning to buy more in the future but probably in Florida or Texas.
Love to see this man! Let me know if you need any help getting your properties listed! Happy to do random walkthroughs for you as well to keep tabs for you, just hit me up!
- Member since 2021 · 33 posts · 7 votes3y
Quote from @Ben Scarborough:
Quote from @Account Closed:
Quote from @Melissa Nash:
I have properties in Bham, montgomery and a few others. Are you looking to buy something already done for you? Or are you doing the work yourself? I have loads of contacts for you and the good- bad and ugly on who is good and who is not! Message me if you want the low down!
Thanks Melissa! I just bought a couple of turnkey properties in the Gulf shores area, so I'm all set for now. I'm planning to buy more in the future but probably in Florida or Texas.
Love to see this man! Let me know if you need any help getting your properties listed! Happy to do random walkthroughs for you as well to keep tabs for you, just hit me up!
- Member since 2021 · 33 posts · 7 votes3y
Quote from @Account Closed:
Quote from @Ben Scarborough:
Quote from @Account Closed:
Quote from @Melissa Nash:
I have properties in Bham, montgomery and a few others. Are you looking to buy something already done for you? Or are you doing the work yourself? I have loads of contacts for you and the good- bad and ugly on who is good and who is not! Message me if you want the low down!
Thanks Melissa! I just bought a couple of turnkey properties in the Gulf shores area, so I'm all set for now. I'm planning to buy more in the future but probably in Florida or Texas.
Love to see this man! Let me know if you need any help getting your properties listed! Happy to do random walkthroughs for you as well to keep tabs for you, just hit me up!
Thanks Ben! The two rental properties are all set, with a PM in place. So I'm hoping everything will go smoothly. I would like to make a correction, actually, they are in Foley, not in Gulf shores.
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