I have a family member moving out to Fort Rucker soon, and they don't have a desire to purchase a house there. My thought was if the market is good, I could purchase a SFH or townhouse to rent out to them and keep the home as a cash-flowing property after they move away.
It seems like there are some well priced townhomes just west of Ft. Rucker in Enterprise, AL, which is my family member's desired area. Does anyone have any insight on the market here, areas to avoid, or anything that can help me understand the market better?
Thanks in advance.
I purchased a town home in the Eagle Landing subdivision while I was there for training and have been completely satisfied with my investment.
There are some pro's and con's to the area.
You will have no shortage of military tenants and the property values have been appreciating nicely over the past few years. However, like many markets, you will have a hard time creating a significant cash flow when you purchase at market rates. Rent is competitive due to, what I would consider, a complete saturation of rental properties in the city.
I rent my property as a short-term rental, focusing on TDY soldiers or contractors working on base, so far this has been highly successful. I would never have thought about doing except for the fact that regular rentals in the area generate such mediocre returns.
The base will always be there. You will always have tenants. The population of Enterprise is increasing. Rent is competitive and property values don't leave much wiggle room for expenses.
@Benjamin Fertich Thanks for the insight. I didn't think about bases being heavy-renting communities but it makes sense. Running analysis on some homes definitely showed that returns are mostly just okay.
I do like the short-term rental idea, just as long as the property can also work as a long-term rental from a numbers perspective.
I'm going to look to see if there are any BRRRR worthy properties in the area but I feel property values may be too low to work out a cash-out refi.
I know this is almost 2 years ago, but I just searched Fort Rucker, and your post came up! I'm possibly moving there for military training for 1+ year, and am interested in the REI market. Did you ever end up buying a place?
@Landon Fillmore no I never ended up purchasing there. I visited there in November though and looks like they’re putting up a bunch of new apartments and townhomes. Good luck with the search!
@Sam Lenderman good to know, thanks! Are you invested elsewhere?
No I’m not, I didn’t have a lot of capital when I got interested in real estate so I shifted my strategy to wholesaling and I’m accelerating that business now.
@Landon Fillmore hey I'm here at Rucker right now, just looked into buying an investment property. The market is too inflated right now and will likely burst, so I decided not to invest here. Just my thoughts
@Reece Ludwig Thanks for the info! Good to know. From my perspective from an expensive market, prices look pretty good in the area, but I haven't looked into rental rates and COC returns very much.