Birmingham Market by Class

General Real Estate Investing
8yFollow

Birmingham Market by Class

Jason CoryPro Member
Real Estate Broker · Birmingham, AL · Member since 2018 · 264 posts · 381 votes

Class A

Mountain Brook - https://www.neighborhoodscout.com/al/mountain-brook

Homewood - https://www.neighborhoodscout.com/al/homewood

Vestavia Hills - https://www.neighborhoodscout.com/al/vestavia-hills

Hoover - https://www.neighborhoodscout.com/al/hoover

Class B

Alabaster - https://www.neighborhoodscout.com/al/alabaster

Pelham - https://www.neighborhoodscout.com/al/pelham

Gardendale - https://www.neighborhoodscout.com/al/gardendale

Trussville - https://www.neighborhoodscout.com/al/trussville

Helena - https://www.neighborhoodscout.com/al/helena

Chelsea - https://www.neighborhoodscout.com/al/chelsea

Indian Springs - https://www.neighborhoodscout.com/al/indian-springs-village

Class C

Fultondale - https://www.neighborhoodscout.com/al/fultondale

Centerpoint - https://www.neighborhoodscout.com/al/center-point

Roebuck - https://www.neighborhoodscout.com/al/birmingham/roebuck-crest-estates

Forestdale - https://www.neighborhoodscout.com/al/birmingham (Unincorporated)

Adamsville - https://www.neighborhoodscout.com/al/adamsville

Graysville - https://www.neighborhoodscout.com/al/graysville

Hueytown - https://www.neighborhoodscout.com/al/hueytown

Pleasant Grove - https://www.neighborhoodscout.com/al/pleasant-grove

Mt. Olive - https://www.neighborhoodscout.com/al/gardendale

Irondale - https://www.neighborhoodscout.com/al/irondale

Moody - https://www.neighborhoodscout.com/al/moody

Leeds - https://www.neighborhoodscout.com/al/leeds

Grayson Valley - https://www.neighborhoodscout.com/al/birmingham (Unincorporated)

Pinson - https://www.neighborhoodscout.com/al/pinson

McCalla - https://www.neighborhoodscout.com/al/bessemer (Unincorporated)

Mulga - https://www.neighborhoodscout.com/al/mulga

Minor - https://www.neighborhoodscout.com/al/mulga (Unincorporated)

Morris - https://www.neighborhoodscout.com/al/kimberly (Unincorporated)

Kimberly - https://www.neighborhoodscout.com/al/kimberly

Class D

Midfield - https://www.neighborhoodscout.com/al/midfield

Tarrant - https://www.neighborhoodscout.com/al/tarrant

West End - https://www.neighborhoodscout.com/al/birmingham/zipcode/35211

Ensley - https://www.neighborhoodscout.com/al/birmingham/zipcode/35208

Inglenook - https://www.neighborhoodscout.com/al/birmingham/inglenook

Class F

Bessemer - https://www.neighborhoodscout.com/al/bessemer

Fairfield - https://www.neighborhoodscout.com/al/fairfield

Eastlake - https://www.neighborhoodscout.com/al/birmingham/zipcode/35206

Lipscomb - https://www.neighborhoodscout.com/al/lipscomb

Brighton - https://www.neighborhoodscout.com/al/brighton

North Birmingham - https://www.neighborhoodscout.com/al/birmingham/zipcode/35207

Comparison by Class

Homewood – Class A

Median Home Value - $379,563

Median Household Income - $66,573

Individuals Below the Poverty Level – 11.1%

Crime Index – 8 out of 100 (100 being Safest)

School System – Top 10 in the State

Average Market Rent - $1,420

Alabaster – Class B

Median Home Value - $179,984

Median Household Income - $73,325

Individuals Below the Poverty Level – 10.2%

Crime Index – 40 out of 100 (100 being Safest)

School System – Top 50 in the State

Average Market Rent - $1,362

Centerpoint – Class C

Median Home Value - $117,940

Median Household Income - $39,134

Individuals Below the Poverty Level – 26.7%

Crime Index – 12 out of 100 (100 being Safest)

School System – Lower 3rd of State

Average Market Rent - $1,162

Tarrant - Class D

Median Home Value - $73,542

Median Household Income - $26,800

Individuals Below the Poverty Level – 32.6%

Crime Index – 1 out of 100 (100 being Safest)

School System – Lower 3rd of State

Average Market Rent - $1,045

Alabama is similar to all other states regarding property class. They are driven mainly by school systems and crime statistics. Since Birmingham is a smaller MSA the per capita rates for crime are skewed and typically reflect more crime than actually happens.

Homewood is a Class A area however, due to recent annexations the crime stats reflect an area of higher than normal crime. Homewood is an affluent suburb of Birmingham. It was chosen as a comparison to show this fact. It has one of the highest median home values and income in the state. The school system is consistently rated in the top 5 of the state. This is a predominately owner-occupied market.

Tarrant City is a lower income area that is a predominately tenant-occupied market that receives assistance in one form or another. This area consistently rents above market. It is a higher crime area of Birmingham.

Birmingham is not the crime filled market data would typically suggest. It consists mainly of domestic abuse and/or petty vandalism.

If you are investing in Birmingham I ask you do your own research to verify the data provided. Class C & D areas are the best markets for renting properties. The Class D areas in Birmingham would likely be Class C areas in other markets however, the classes have been assigned based on local activity and knowledge of the markets as a whole for Birmingham and the MSA.

I used to Appraise Real Estate prior to Investing. I only invest in Class C or D areas since the return is higher and the pool of potential occupants never decreases. In Class A or B areas the return is lower since the entry prices are higher and the return is typically half of predominately rental areas. If you are investing for cash flow it is better to invest in areas that reflect your goals instead of investing in areas that do not offer the returns you are seeking.

If you have any questions about Birmingham I welcome you to reach out to discuss further.

35Reply
364 views

Most Popular Reply

Tal Simpson
Rental Property Investor · Birmingham, AL · Member since 2017 · 53 posts · 56 votes
7y

@Cliff C. East Lake has some areas I’d recommend, but like many of the investor-heavy areas in Bham, it’s a block to block situation. In East Lake, stay on the South East Lake side, and try to stay in the eastern part toward Ruffner. At about 77th St South and northeast towards Roebuck Springs you will start to see a noticeable change for the better.

A little further north of East Lake is Roebuck, which is a better area but still modest enough to offer the occasional 50k or less house. Also on the north side, there are parts of Tarrant that are pretty decent.

In west Bham I would look at midfield and then some more discreet areas of west Bham like Belview Heights, Bush Hills, Central Park, and West End Manor.

Happy hunting!

4Reply
See this reply in the discussion

76 Replies

Jump to latestLatest
  • Jason CoryPro Member
    OP
    Real Estate Broker · Birmingham, AL · Member since 2018 · 264 posts · 381 votes
    8y
    Originally posted by @David T.:

    Thank you for the data provided @Jason Cory! This is very helpful. Given the information given, do you still think this is still a good time to buy an investment property in the Center Point area? 

     Not at all. Centerpoint has never been sunshine & rainbows the way it's presented on here. I referred to it as a revolving foreclosure market in 2006 when I was appraising. A lot of people that bought in Centerpoint are going to learn a difficult financial lesson when they try to sell. The 1% rule doesn't work & it never has in the history of Real Estate. 

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y

    One thing of NOTE.. and your comments of only invest in low end for the numbers Smacks of Morris invest and we have seen the carnage that created when out of area investors have no clue as to how to manage D and F.

    Its fine for you a local pro.. but for out of state they take on a risk that far outweighs a few % increase in return. it just takes one of the those D and F tenants to do 10k worth of damage to ruin your nice cash cow for 5 years..

    I love B ham been funding investors there for going on 15 years in all those areas U talk about... and I agree for a city of 2 million in the MSA crime is not nearly like other areas up north.. kind of that bible belt thing.

    Locals can do it out of state high risk in those low end asset areas.

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    2Reply
  • Jason CoryPro Member
    OP
    Real Estate Broker · Birmingham, AL · Member since 2018 · 264 posts · 381 votes
    8y
    Originally posted by @Jay Hinrichs:

    One thing of NOTE.. and your comments of only invest in low end for the numbers Smacks of Morris invest and we have seen the carnage that created when out of area investors have no clue as to how to manage D and F.

    Its fine for you a local pro.. but for out of state they take on a risk that far outweighs a few % increase in return. it just takes one of the those D and F tenants to do 10k worth of damage to ruin your nice cash cow for 5 years..

    I love B ham been funding investors there for going on 15 years in all those areas U talk about... and I agree for a city of 2 million in the MSA crime is not nearly like other areas up north.. kind of that bible belt thing.

    Locals can do it out of state high risk in those low end asset areas.

    I get where the rationale comes from but it's wrong. First, you always invest in your back yard. Second, you lose value as soon as you buy to rent in the suburbs. The appraised value is the sales comparison because that's the highest & best use of the property in suburbs. As soon as you change the usage to renting it you change the value because the property isn't functioning under the HBU. You either kick the tenant out to sell, after spending money you didn't make only cash flowing $100 a month, or you sell to another investor that pays based on the cash flow. Either way, it's a losing proposition if the truth is actually told. The only way to make money is to flip in the suburbs, again if the truth is actually told. You'll still lose money after a tenant when selling to an owner occupant becauseyou have to renovate with money you didn't make unless you wait 50 years for the prospect of appreciation to be more than purchase + $100 cash flow + re-renovation cost. 

    I get this is how you have made money purchasing this type of property & sell them to people but it's not a sustainable model. Eventually, chickens come home to roost.

    I have no idea who Morris is.

    If I'm wrong, have the people you've sold rentals in the suburbs to & see if they can even get 75% of what they paid with a tenant occupying the property. If not, I'll stick to speaking the truth from years of valuation experience seeing it first hand. 

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y
    Originally posted by @Jason Cory:
    Originally posted by @Jay Hinrichs:

    One thing of NOTE.. and your comments of only invest in low end for the numbers Smacks of Morris invest and we have seen the carnage that created when out of area investors have no clue as to how to manage D and F.

    Its fine for you a local pro.. but for out of state they take on a risk that far outweighs a few % increase in return. it just takes one of the those D and F tenants to do 10k worth of damage to ruin your nice cash cow for 5 years..

    I love B ham been funding investors there for going on 15 years in all those areas U talk about... and I agree for a city of 2 million in the MSA crime is not nearly like other areas up north.. kind of that bible belt thing.

    Locals can do it out of state high risk in those low end asset areas.

    I get where the rationale comes from but it's wrong. First, you always invest in your back yard. Second, you lose value as soon as you buy to rent in the suburbs. The appraised value is the sales comparison because that's the highest & best use of the property in suburbs. As soon as you change the usage to renting it you change the value because the property isn't functioning under the HBU. You either kick the tenant out to sell, after spending money you didn't make only cash flowing $100 a month, or you sell to another investor that pays based on the cash flow. Either way, it's a losing proposition if the truth is actually told. The only way to make money is to flip in the suburbs, again if the truth is actually told. You'll still lose money after a tenant when selling to an owner occupant becauseyou have to renovate with money you didn't make unless you wait 50 years for the prospect of appreciation to be more than purchase + $100 cash flow + re-renovation cost. 

    I get this is how you have made money purchasing this type of property & sell them to people but it's not a sustainable model. Eventually, chickens come home to roost.

    I have no idea who Morris is.

    If I'm wrong, have the people you've sold rentals in the suburbs to & see if they can even get 75% of what they paid with a tenant occupying the property. If not, I'll stick to speaking the truth from years of valuation experience seeing it first hand. 

     your preaching to the choir.. anyone who has read any of my post over the years I always say you should be local if you can and if not you need at least 10 doors and to be cautious of buying in war zones.. locals can make war zone's work .. out of state rarely if ever this is where your inventory comes from burnt out landlord syndrome.. 

    I owned at one time 350 C class some B some D and about 50 in B ham.. so I do have a tad of experience at it.. 

    I also owned a fair amount of A class. and I totally agree with you.. my A class which was a breeze to manage did not even need PM and I was out of state. but when I went to sell to get them to retail standards cost me 10 to 15k a door. what was cool in 04 was obsolete in 14 to 16 when I sold all of those.. I had just under 20 of those.. 

    I am all about the local who wants to stack these rentals as their JOB and live on cash flow until they can turn it over to the next of KIN.. selling any of these assets during the hold period is painful.. unless your in a very high appreciating market like the west coast.. 

    or other high value areas of the US>.  

    So for these areas were values are and have been as you know your in the business basically stagnet for 20 or 30 years or have gone down.. there is no exit that does not cost you money or give back of what ever cash flow you garnered.. 

    But most folks that buy rentals first thing out of their mouth is I am long term and will never sell.. well unfortunately while nice thought does not play out in real life for a variety of reasons.. life gets in the way. 

    Just look at a few of the MORRIS invest threads on BP and you will see.. East coast marketer who talked the same type of thought process. D and F are best for cash flow what is your freedom number buy 5 of them and retire.. well they were all war zone and then add to that terrible ground partner.. and many of these folks are going to lose most of their investment.. like I am sure you have seen there in B ham when folks walk from rentals that are just too tough to manage from afar or they wake up one day and realize what your saying.. Hey these are costing me money not making me money.. 

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    0Reply
  • Jason CoryPro Member
    OP
    Real Estate Broker · Birmingham, AL · Member since 2018 · 264 posts · 381 votes
    8y
    Originally posted by @Jay Hinrichs:
    Originally posted by @Jason Cory:
    Originally posted by @Jay Hinrichs:

    One thing of NOTE.. and your comments of only invest in low end for the numbers Smacks of Morris invest and we have seen the carnage that created when out of area investors have no clue as to how to manage D and F.

    Its fine for you a local pro.. but for out of state they take on a risk that far outweighs a few % increase in return. it just takes one of the those D and F tenants to do 10k worth of damage to ruin your nice cash cow for 5 years..

    I love B ham been funding investors there for going on 15 years in all those areas U talk about... and I agree for a city of 2 million in the MSA crime is not nearly like other areas up north.. kind of that bible belt thing.

    Locals can do it out of state high risk in those low end asset areas.

    I get where the rationale comes from but it's wrong. First, you always invest in your back yard. Second, you lose value as soon as you buy to rent in the suburbs. The appraised value is the sales comparison because that's the highest & best use of the property in suburbs. As soon as you change the usage to renting it you change the value because the property isn't functioning under the HBU. You either kick the tenant out to sell, after spending money you didn't make only cash flowing $100 a month, or you sell to another investor that pays based on the cash flow. Either way, it's a losing proposition if the truth is actually told. The only way to make money is to flip in the suburbs, again if the truth is actually told. You'll still lose money after a tenant when selling to an owner occupant becauseyou have to renovate with money you didn't make unless you wait 50 years for the prospect of appreciation to be more than purchase + $100 cash flow + re-renovation cost. 

    I get this is how you have made money purchasing this type of property & sell them to people but it's not a sustainable model. Eventually, chickens come home to roost.

    I have no idea who Morris is.

    If I'm wrong, have the people you've sold rentals in the suburbs to & see if they can even get 75% of what they paid with a tenant occupying the property. If not, I'll stick to speaking the truth from years of valuation experience seeing it first hand. 

     your preaching to the choir.. anyone who has read any of my post over the years I always say you should be local if you can and if not you need at least 10 doors and to be cautious of buying in war zones.. locals can make war zone's work .. out of state rarely if ever this is where your inventory comes from burnt out landlord syndrome.. 

    I owned at one time 350 C class some B some D and about 50 in B ham.. so I do have a tad of experience at it.. 

    I also owned a fair amount of A class. and I totally agree with you.. my A class which was a breeze to manage did not even need PM and I was out of state. but when I went to sell to get them to retail standards cost me 10 to 15k a door. what was cool in 04 was obsolete in 14 to 16 when I sold all of those.. I had just under 20 of those.. 

    I am all about the local who wants to stack these rentals as their JOB and live on cash flow until they can turn it over to the next of KIN.. selling any of these assets during the hold period is painful.. unless your in a very high appreciating market like the west coast.. 

    or other high value areas of the US>.  

    So for these areas were values are and have been as you know your in the business basically stagnet for 20 or 30 years or have gone down.. there is no exit that does not cost you money or give back of what ever cash flow you garnered.. 

    But most folks that buy rentals first thing out of their mouth is I am long term and will never sell.. well unfortunately while nice thought does not play out in real life for a variety of reasons.. life gets in the way. 

    Just look at a few of the MORRIS invest threads on BP and you will see.. East coast marketer who talked the same type of thought process. D and F are best for cash flow what is your freedom number buy 5 of them and retire.. well they were all war zone and then add to that terrible ground partner.. and many of these folks are going to lose most of their investment.. like I am sure you have seen there in B ham when folks walk from rentals that are just too tough to manage from afar or they wake up one day and realize what your saying.. Hey these are costing me money not making me money.. 

    When I appraised I was the one they asked to appraise the houses they sold to the tenants that went thru the home ownership program. Every house that was sold was in Centerpoint, Hueytown, & Pleasant Grove. Even the housing authority dumped the properties in predominantly owner occupied areas because they lost money renting them. 

    You don't need a manager in D areas because you have a case worker as your manager/liaison if you do it the right way. No housing authority tenant wants to lose their assistance so they straighten up quick if the case worker is involved. It's a controlled environment. 

    The best a PM can do is ask the tenant to pay rent but can't force them or make them take care of the house. The housing authority can do all of that & does. 

    When you talk about war zones that's a generalization. Birmingham isn't Chicago. Manners are still taught here & people still gladly carry firearms, including women so when you try something, even with a woman, you never know if you'll eat lead. That keeps people in check even though it's a different debate for a different time. 

    All 4 houses I have that are vacant, in D areas are unlocked, & untouched. 

    Conversely, this is the sunshine & rainbows of Centerpoint. 

    13 break-ins in one year at this house.

    http://www.foxnews.com/us/2017/03/30/alabama-man-k...

    4 shot including a baby

    http://www.foxnews.com/us/2017/04/16/4-shot-includ...

    Football player killed

    http://www.foxnews.com/us/2018/05/01/former-green-...

    Senseless 

    https://www.al.com/news/birmingham/index.ssf/2018/...

    Shot over weed

    https://www.al.com/news/birmingham/index.ssf/2018/...

    At the high school

    https://www.al.com/news/birmingham/index.ssf/2018/...

    Water balloon fight turned into shooting

    https://www.al.com/news/birmingham/index.ssf/2017/...

    I could post for days about these in Centerpoint. It's what happens when tenants take over owner occupied areas. They degentrify immediately. 

    1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y

    Jason.  when I am in south side Chi town is head on a swivel.. B ham not so much..

    crime happens in all markets that for sure..

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    0Reply
  • Jason CoryPro Member
    OP
    Real Estate Broker · Birmingham, AL · Member since 2018 · 264 posts · 381 votes
    8y
    Originally posted by @Jay Hinrichs:

    Jason.  when I am in south side Chi town is head on a swivel.. B ham not so much..

    crime happens in all markets that for sure..

    True statement. Crime does happen everywhere. 

    I grew up in this business & I've seen it ruin entirely too many people whether homeowners being foreclosed or investors buy because it was pretty as a hobby. 

    One of those I saw it ruin was my father even though he was able to bounce back after the S&L crisis.

    That's why I will only tell the truth in direct terms. There are a lot of crooks in the business because of the money that can be made. I'm not interested in winning the popularity contest but if I can save one person from ruining their well-being that typically includes kids without a dog in the fight I'll do it every time. 

    We won't always agree but you've built something to be proud of & I respect that. 

    If you're in Birmingham you really should buy D areas though. You're never going to be able to buy houses for late 70's - early 80's new car prices again when they are vacant. They have nowhere to depreciate. It can only appreciate. That's the money play with 100% cash on cash in 5 years, even with a loan. 

    I'll be glad to show you how to make it work here. 

    0Reply
  • Sunny D.
    Pleasanton, CA · Member since 2015 · 246 posts · 115 votes
    8y
    Originally posted by @Alpesh Parmar:

    Thanks @Jason Cory. I own 9 units in Grayson Valley. Looking to acquire some more in Center Point.

     i have a sfh in 35215 center point i am looking to sell so i can focus on cleveland.

    0Reply
  • Tal Simpson
    Rental Property Investor · Birmingham, AL · Member since 2017 · 53 posts · 56 votes
    8y

    @Jason Cory I could not disagree more with how you have made your divisions between class levels.  There's not a Class F area on your list, unless by "Ensley" you mean actual Ensley up by South Pratt instead of Ensley Highlands or other parts of west Bham inside I-20/59, and then I might buy the former as an F or D-.  I would add Trussville up with Hoover as an A to A-, but pretty much everything else on your list ranges from B+ to C- (generally).  Irondale a class C area?  Eastlake a Class F?  LOL.  That is not the way to get people interested in investing in Bham - you just put the most investor friendly areas on the D and F lists and I can see people in Cali now freaking out and hitting the sell button.

    0Reply
  • Tal Simpson
    Rental Property Investor · Birmingham, AL · Member since 2017 · 53 posts · 56 votes
    8y
    Originally posted by @Account Closed:

    I fully expect rent ratios to be different at D and A class properties. I do see that in other markets where I invest in. For example in Indy a class B 100-120K home rents at 1% while a class C 70-80K home rents at 1.2% and class D 50K home may rent at almost 2%. But there is a large drop in actual rents from 1200/month down to $500/month. What  I have a hard time with is your statement of a Class D property renting for over 1K per month in Birmingham while a class A $300K property only fetches 1400.

     I don't agree at all with OP's assessment.  I'll give you an example - I have a Class A rental house (Mountain Brook) that brings in $2800/mo (multi year lease) that I bought for $350k, and then I have about 15 or so Class C to C- rentals (Eastlake, Midfield, Fairfield, Tarrant, West End) that on average pull in $600-650/mo after picking them up for 25-28k each and put a little work into them.  Bham sounds similar to Indy - solid Class B houses that don't need much work will come in around the 100k up to 200k price range and pull in $900-1500 in rent per month.  Basically, you can hit the 1% rule in Bham Class B areas, the 2% rule in Class C/C- and below areas, and are lucky to get the 0.75% range in Class A areas.

    0Reply
  • Jason CoryPro Member
    OP
    Real Estate Broker · Birmingham, AL · Member since 2018 · 264 posts · 381 votes
    8y
    Originally posted by @Tal Simpson:
    Originally posted by @Account Closed:

    I fully expect rent ratios to be different at D and A class properties. I do see that in other markets where I invest in. For example in Indy a class B 100-120K home rents at 1% while a class C 70-80K home rents at 1.2% and class D 50K home may rent at almost 2%. But there is a large drop in actual rents from 1200/month down to $500/month. What  I have a hard time with is your statement of a Class D property renting for over 1K per month in Birmingham while a class A $300K property only fetches 1400.

     I don't agree at all with OP's assessment.  I'll give you an example - I have a Class A rental house (Mountain Brook) that brings in $2800/mo (multi year lease) that I bought for $350k, and then I have about 15 or so Class C to C- rentals (Eastlake, Midfield, Fairfield, Tarrant, West End) that on average pull in $600-650/mo after picking them up for 25-28k each and put a little work into them.  Bham sounds similar to Indy - solid Class B houses that don't need much work will come in around the 100k up to 200k price range and pull in $900-1500 in rent per month.  Basically, you can hit the 1% rule in Bham Class B areas, the 2% rule in Class C/C- and below areas, and are lucky to get the 0.75% range in Class A areas.

     I used to appraise so I am trained on how to analyze markets along with value. Just because you make money in an area or have a preference doesn't change demographics, crime stats, demand, or supply. They are all factors that play into the overall assessment of a market. How many vacant houses are in Mountain Brook? How many are in Ensley?

    I can respect that you disagree but the assessment is correct for Birmingham. I invest in these areas. As was true when I appraised you can tell the truth & still get the loan approved and/or tell the truth & still invest/sell properties in the bad areas of Birmingham. I do it all the time. 

    0Reply
  • Jason CoryPro Member
    OP
    Real Estate Broker · Birmingham, AL · Member since 2018 · 264 posts · 381 votes
    8y

    Btw, I rented a house yesterday in one of these areas for $858 being $25k all in, i.e. a 41% gross ROI. It's one of the areas you stated as buying for $25-28k then putting work into it for only $600-$650. By your example it appears you're leaving money on the table with your model.

    0Reply
  • Adrienne McCloud
    Washington, DC · Member since 2015 · 12 posts · 3 votes
    8y

    Nice. Thanks! 

    1Reply
  • David T.
    Real Estate Investor · Orange County, CA · Member since 2013 · 39 posts · 4 votes
    8y

    @Jason Cory What are your thoughts on a property in Tarrant? Based on the information provided, it's in a Class D area and for out of state investors like myself, is this still a good time invest in the B-ham area, specifically in Tarrant? I'm not sure if the real estate market has cooled off in B-ham. Just want to pick your brain and knowledge in your area. Thanks 

    0Reply
  • Jason CoryPro Member
    OP
    Real Estate Broker · Birmingham, AL · Member since 2018 · 264 posts · 381 votes
    8y
    Originally posted by @David T.:

    @Jason Cory What are your thoughts on a property in Tarrant? Based on the information provided, it's in a Class D area and for out of state investors like myself, is this still a good time invest in the B-ham area, specifically in Tarrant? I'm not sure if the real estate market has cooled off in B-ham. Just want to pick your brain and knowledge in your area. Thanks 

     Tarrant is fine to rent a property but you have to deal with the local government since they control the power. Anytime you turn on new service they will charge you for an inspection prior to turning on the service & potentially make you do additional renovations. 

    I wouldn't look at Tarrant for fix & flips. 

    1Reply
  • David T.
    Real Estate Investor · Orange County, CA · Member since 2013 · 39 posts · 4 votes
    8y
    Originally posted by @Jason Cory:
    Originally posted by @David T.:

    @Jason Cory What are your thoughts on a property in Tarrant? Based on the information provided, it's in a Class D area and for out of state investors like myself, is this still a good time invest in the B-ham area, specifically in Tarrant? I'm not sure if the real estate market has cooled off in B-ham. Just want to pick your brain and knowledge in your area. Thanks 

     Tarrant is fine to rent a property but you have to deal with the local government since they control the power. Anytime you turn on new service they will charge you for an inspection prior to turning on the service & potentially make you do additional renovations. 

    I wouldn't look at Tarrant for fix & flips. 

    Thank you for the information. I'm a bit hesitant on properties in this area because I'm from out of state and do not have my eyes and ears in the field. Was there a reason why the government would charge you for an inspection prior to turning on service? Also, would you buy and hold this property or would you consider buying it in another area of Birmingham? 

    0Reply
  • Jason CoryPro Member
    OP
    Real Estate Broker · Birmingham, AL · Member since 2018 · 264 posts · 381 votes
    8y
    Originally posted by @David T.:
    Originally posted by @Jason Cory:
    Originally posted by @David T.:

    @Jason Cory What are your thoughts on a property in Tarrant? Based on the information provided, it's in a Class D area and for out of state investors like myself, is this still a good time invest in the B-ham area, specifically in Tarrant? I'm not sure if the real estate market has cooled off in B-ham. Just want to pick your brain and knowledge in your area. Thanks 

     Tarrant is fine to rent a property but you have to deal with the local government since they control the power. Anytime you turn on new service they will charge you for an inspection prior to turning on the service & potentially make you do additional renovations. 

    I wouldn't look at Tarrant for fix & flips. 

    Thank you for the information. I'm a bit hesitant on properties in this area because I'm from out of state and do not have my eyes and ears in the field. Was there a reason why the government would charge you for an inspection prior to turning on service? Also, would you buy and hold this property or would you consider buying it in another area of Birmingham? 

     They do it to avoid renovating in a way that isn't up to code. The landlord patch syndrome. There are a lot of people that buy to rent in Tarrant. No D or F area in Birmingham is really that different. It's all a preference but every area will rent. 

    0Reply
  • Dawson Vorderbruegge
    Realtor · Honolulu, HI · Member since 2018 · 4 posts · 5 votes
    8y

    Hi @Jason Cory,

    Thanks for the incredible analysis! This is so helpful for out-of-towners.  Wondering if you can recommend real-estate agents in the Birmingham area? Feel free to private message me.

    Mahalo

    1Reply
  • Jason Carter
    Rental Property Investor · Culver City, CA · Member since 2012 · 403 posts · 246 votes
    8y

    @Dawson Vorderbruegge you may want to talk with @Rob Drum. He's an agent who works with investors and has helped me. 

    3Reply
  • Dawson Vorderbruegge
    Realtor · Honolulu, HI · Member since 2018 · 4 posts · 5 votes
    8y

    Thanks @Jason Carter

    0Reply
  • Scott Taylor
    Rental Property Investor · Spring, TX · Member since 2018 · 7 posts · 0 votes
    8y

    @Jason Corey - Thanks for taking the time to put this together.  Extremely helpful.  Currently looking at a multi-family opportunity in Birmingham.  Can you recommend a property management company that specializes in Section 8 that works the east side of Birmingham?

    0Reply
  • Latesha Isbell
    Member since 2018 · 1 post · 0 votes
    8y

    Best post I've found on BP thusfar...thanks @Jason Cory! I am from B'ham but live in Atlanta now. I'm new to REI but looking to wholesale in both markets. Any recommendations for a wholesaler-friendly title company in Birmingham?

    0Reply
  • Jason CoryPro Member
    OP
    Real Estate Broker · Birmingham, AL · Member since 2018 · 264 posts · 381 votes
    8y
    Originally posted by @Scott Taylor:

    @Jason Corey - Thanks for taking the time to put this together.  Extremely helpful.  Currently looking at a multi-family opportunity in Birmingham.  Can you recommend a property management company that specializes in Section 8 that works the east side of Birmingham?

     I'll send you a message 

    1Reply
  • Jason CoryPro Member
    OP
    Real Estate Broker · Birmingham, AL · Member since 2018 · 264 posts · 381 votes
    8y
    Originally posted by @Latesha Isbell:

    Best post I've found on BP thusfar...thanks @Jason Cory! I am from B'ham but live in Atlanta now. I'm new to REI but looking to wholesale in both markets. Any recommendations for a wholesaler-friendly title company in Birmingham?

     A lot of people use Jeff Parmer. Call around & find the best fit for you. 

    0Reply
  • Helen Chen
    Investor · Salt Lake City, UT · Member since 2015 · 9 posts · 1 vote
    8y

    Jason, would you please share the management company information with me too?

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free