Investing out of state. Alabama vs Ohio

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Investing out of state. Alabama vs Ohio

Kareem Johnson
Boston, MA 路 Member since 2021 路 9 posts 路 7 votes

Strongly considering buy and hold in either Alabama or Ohio. B or C class neighborhood, Anyone have success in these markets and what neighborhood/city did you select? all info is appreciated.

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Spencer SuttonBusiness Member
Investor 路 Birmingham, AL 路 Member since 2015 路 119 posts 路 148 votes
5y

I love all the football references. Roll Tide!

I have been an investor in Birmingham since 2003 - wholesale and rentals. Additionally, our company has managed SFR in Birmingham since 2008. We know a lot of investors who are pleased with their Birmingham investments in terms of both cash flow and appreciation. Your cash flow opportunities will increase with your risk tolerance in the C class areas...and in Birmingham, so much of it is street to street. It's difficult to classify an entire area as good or not.

I would check out the podcast The Birmingham Real Estate Investor...a lot of great local investors and pros have been interviewed who give their insight into the market. You could also reach out to some of them for additional thoughts.

I will say the competition for SFR in Birmingham has skyrocketed with the growth of institutional buyers in the city.

I hope this helps...Best of luck to you!

205-336-2559
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  • Erickson Sainval
    Investor 路 San Diego, CA 路 Member since 2019 路 326 posts 路 266 votes
    5y

    Both good markets to get into, I would pick Ohio over Alabama. I'd start with Huntsville AL, and Columbus, OH.

    2Reply
  • Remington LymanBusiness Member
    Real Estate Agent 路 Columbus, OH 路 Member since 2017 路 6k+ posts 路 7k+ votes
    5y
    Originally posted by @Kareem Johnson:

    Strongly considering buy and hold in either Alabama or Ohio. B or C class neighborhood, Anyone have success in these markets and what neighborhood/city did you select? all info is appreciated.

     I have had a lot of success with investing in Columbus, Ohio

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
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    1Reply
  • Marc RiceBusiness Member
    Real Estate Agent 路 Columbus Cleveland Dayton, OH 路 Member since 2018 路 2k+ posts 路 1k+ votes
    5y

    @Kareem Johnson

    I cannot speak much to Alabama but Columbus, Ohio has been a great market for me and is growing at a great pace.

    [email protected]614-363-2787
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  • Brian P.
    Investor 路 NJ 路 Member since 2016 路 18 posts 路 7 votes
    5y

    Huntsville has been great to me.  So much growth and appreciation.  Very competitive right now, most of the properties i bid on seem to be going at 105-110% of asking price with cash offers.  However, there are still pockets of opportunities from my perspective.

    To me, Ohio vs Alabama isn't really much of a question, they are so different. When you look at population and job forecasts, Alabama is expected to see much stronger growth.  For my business model, this is important so Alabama wins every time.  You might have different goals though.  

    3Reply
  • Brandon GoldsmithBusiness Member
    Real Estate Agent 路 Columbus, OH 路 Member since 2020 路 1k+ posts 路 1k+ votes
    5y

    These are two very different markets, usually only in the same debate for football. It all depends on your REI goals but you can get a pretty nice cash flow/ appreciation combo in Columbus. @Kareem Johnson

    [email protected]614-963-3340
    2Reply
  • Carlos Ptriawan
    Member since 2019 路 7k+ posts 路 4k+ votes
    5y

    Since I invest in both place I could say the following:
    - Relatively, Alabama is cheaper than Ohio for what you get
    - However, Ohio is perhaps better to compare to Alabama in term of jobs, except if your choice is Huntsville,AL
    - Tax is cheaper in AL
    - You can find easy 1.0 rent ratio newer SFR in Birmingham or Montgomery, while OH bringing more MF > 1.0 rent ratio. This is the bigger differences between the two.
    - Weather is different.

    My advice is to invest at both places :)

    4Reply
  • Remington LymanBusiness Member
    Real Estate Agent 路 Columbus, OH 路 Member since 2017 路 6k+ posts 路 7k+ votes
    5y
    Originally posted by @Carlos Ptriawan:

    Since I invest in both place I could say the following:
    - Relatively, Alabama is cheaper than Ohio for what you get
    - However, Ohio is perhaps better to compare to Alabama in term of jobs, except if your choice is Huntsville,AL
    - Tax is cheaper in AL
    - You can find easy 1.0 rent ratio newer SFR in Birmingham or Montgomery, while OH bringing more MF > 1.0 rent ratio. This is the bigger differences between the two.
    - Weather is different.

    My advice is to invest at both places :)

     Ohio has better Realtors than Alabama

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
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    3Reply
  • Brian Tunnell
    Rental Property Investor 路 Birmingham, AL 路 Member since 2019 路 76 posts 路 43 votes
    5y

    I can only speak to multifamily here in Birmingham. There continue to be good cash flow opportunities for those looking for a turnkey deal. We like a value add model and there are certainly more of those than we can even keep an eye on. It's a lot! If you're only looking at SFR, please ignore my input. I know nothing about it. If you want to talk about MF in B'ham though, just shoot me a note. :-)

    0Reply
  • Aj Parikh
    Rental Property Investor 路 Centreville, VA 路 Member since 2019 路 1k+ posts 路 799 votes
    5y

    @Kareem Johnson I purchased a Single Family Home near Cleveland, OH with Martel Turnkey and its been cash flowing close to $300 / month and housing prices have also risen since my purchase so I would suggest you check out that market. Let me know if you want to connect and talk about the purchase process. 

    1Reply
  • Brian Garlington
    Realtor 路 Oakland, CA and a Real Estate Investor with Multi-Family Units and a Self Storage Facility 路 Member since 2016 路 2k+ posts 路 2k+ votes
    5y

    Alabama vs. Ohio?  

    Alabama pays their players better and they have a better benefits program, not limited too, but including Deer Antler Spray and Dodge Charger Hellcats with a trunk full of $$$$$ upon delivery. I believe they have also managed the salary cap better so they don't tie all their money up in one position  When their players leave to go to the NFL they often take a pay cut, but with how the Crimson Tide back loads their contracts the players get that amount to supplement their new NFL salaries so it ends up as a break even.

    On a serious note....I'm very curious about this topic as well. Currently I invest in Cleveland as well as the San Francisco Bay Area....I'm looking at the idea of Alabama because of a myriad of reasons. One of which is that it is my understanding that in some markets of Alabama, if you have a Section 8 tenant, then the tenant is still responsible for paying for their own water and sewer. I have Section 8 rentals in Cleveland and Oakland, CA and Concord, CA but the HAP contract makes it a requirement that the landlord pay for water and sewer. Perhaps someone with knowledge can clarify if this is true in

    Huntsville, Alabama

    Birmingham, Alabama

    Mobile, Alabama

    Montgomery, Alabama

    Tuscaloosa, Alabama

    5Reply
  • Spencer SuttonBusiness Member
    Investor 路 Birmingham, AL 路 Member since 2015 路 119 posts 路 148 votes
    5y

    I love all the football references. Roll Tide!

    I have been an investor in Birmingham since 2003 - wholesale and rentals. Additionally, our company has managed SFR in Birmingham since 2008. We know a lot of investors who are pleased with their Birmingham investments in terms of both cash flow and appreciation. Your cash flow opportunities will increase with your risk tolerance in the C class areas...and in Birmingham, so much of it is street to street. It's difficult to classify an entire area as good or not.

    I would check out the podcast The Birmingham Real Estate Investor...a lot of great local investors and pros have been interviewed who give their insight into the market. You could also reach out to some of them for additional thoughts.

    I will say the competition for SFR in Birmingham has skyrocketed with the growth of institutional buyers in the city.

    I hope this helps...Best of luck to you!

    205-336-2559
    Evernest4.63635 Reviews
    WebsiteView Page
    6Reply
  • Claude Blenman
    Member since 2021 路 1 post 路 0 votes
    5y

    Is it a good idea to join a REIA group? If yes, how would one sort out which one is best? There are 2-3 groups in the cities that I'm considering.

    0Reply
  • Kyle Posey
    Member since 2019 路 7 posts 路 0 votes
    5y

    @Kareem Johnson I originally looked at Waco, Tx then Columbus & Cincinnati, OH then finally settled on Huntsville, AL... it all came down to purchase price, rental estimates and cheaper taxes. (Though I still see some potentially good looking properties in OH)

    I gotta ask - how did you narrow it down to those 2 locations?

    0Reply
  • Joshua McMillion
    Rental Property Investor 路 Madison, AL 路 Member since 2019 路 487 posts 路 658 votes
    5y

    @Kareem Johnson

    I looked at both originally too and settled on Alabama. The decision was made easy because I moved here for my job. I have a good friend that is an investor and agent in Cincinnati if you were looking at that area. As far as which market is better, what are your goals? Alabama is very competitive and will increasing remain so. It's hard to find deals that make sense due to the bidding wars that take place. However, that being said, there are deals to be had. It requires some diligence on your part and building a good team, though. 

    Sincerely 

    Josh 

    3Reply
  • Adam Uxley
    Specialist 路 Columbus, OH 路 Member since 2021 路 11 posts 路 9 votes
    5y

    @Remington Lyman where in Columbus have you been investing? Like certain zip code and single, multi?

    1Reply
  • Dan Rowley
    Investor 路 Cary, NC 路 Member since 2012 路 218 posts 路 196 votes
    5y

    @Brian Tunnell do you do deals in Huntsville or know operators there ? Pm me if so.

    1Reply
  • Dawn Loomis
    Boaz, AL 路 Member since 2014 路 5 posts 路 1 vote
    5y

    Brian Garlington, I have excepted a HUD voucher before in the Boaz AL area and never had to include those.

    From my understanding HUD would give my tenant a check once a month to apply on her water and electricity. I hope this helps!

    1Reply
  • Preston Morrison
    Investor 路 Fort Worth, TX 路 Member since 2015 路 43 posts 路 18 votes
    5y

    @Dan Rowley I am a North Alabama native Real Estate Agent. I have a depth of knowledge of Alabama. I would love to connect with you and share some investment opportunities with you. 

    2Reply
  • Zeke Liston
    Real Estate Agent 路 Columbus, OH 路 Member since 2018 路 1k+ posts 路 1k+ votes
    5y
    Originally posted by @Kareem Johnson:

    Strongly considering buy and hold in either Alabama or Ohio. B or C class neighborhood, Anyone have success in these markets and what neighborhood/city did you select? all info is appreciated.

     Hi Kareem, that's great. I'd check out Columbus, OH. 

    1Reply
  • La鈥橳aunja Martin Cooper
    Realtor 路 Pittsburgh, PA 路 Member since 2020 路 18 posts 路 19 votes
    5y
    Originally posted by @Kareem Johnson:

    Strongly considering buy and hold in either Alabama or Ohio. B or C class neighborhood, Anyone have success in these markets and what neighborhood/city did you select? all info is appreciated.

    @Kareem Johnson  I鈥檝e had good success on the Gulf Coast, as I have 2 buy and hold properties.....B class and just purchased land over the bay...  as we call it. But Alabama has great investment potential in my opinion! Good Luck 馃崁 

    1Reply
  • Kareem Johnson
    OP
    Boston, MA 路 Member since 2021 路 9 posts 路 7 votes
    5y

    @Kyle Posey growth potential (esp in Columbus and Huntsville) and landlord friendly states.

    0Reply
  • Caleb Bryant
    Rental Property Investor 路 Huntsville, AL 路 Member since 2015 路 401 posts 路 309 votes
    5y

    I have a lot of Ohio investors who 1031'd out of OH into N Alabama. I'm in Huntsville though so I may be biased haha. Columbus is a hot market as well. I know some good wholesalers there if you want to get connected. 

    3Reply
  • Prashant Sheth
    Rental Property Investor 路 Member since 2017 路 75 posts 路 19 votes
    5y

    @Brian Tunnell would love to talk to uou about MF in Birmingham

    0Reply
  • Prashant Sheth
    Rental Property Investor 路 Member since 2017 路 75 posts 路 19 votes
    5y

    @Aj Parikh please connect me

    0Reply
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