Montgomery, AL

61 Replies

Hello Bigger Pockets Members,

I'm looking for some networking opportunities in Montgomery, AL.

1. Cash Buyers in the area

2. Wholesalers in the area

3. Realtors that specialise in the area.

Thank you,

Please PM me if you would like to connect. Thank you.

Hi All,

I was contemplating a property in Montgomery, in the 36117 area... this is the most recent thread on Montgomery on the site... are folks still around?  

I'm making the investment from WA, we're due to move to the area next summer - perhaps it's safer to wait until we get there to check out the neighborhoods and do person to person interviews w/ PM companies... but if anyone on the forum has any folks they can recommend - I'd greatly appreciate it!!

Contact @Matt Bell

He has rentals and does flips in Montgomery from long distance. He is also very familiar with Montgomery because he lived there for quite some time. Awesome guy who is doing really well in Montgomery with REI.

@Jennifer McElliott @Sareh Yegh

I'm not investing here yet, but I do live in the area and am happy to answer questions if I can. 

@Jennifer McElliott what happened with the deal in 36117? Sorry for the delay of 2 months but I started a new day job and have been traveling an insane amount.  Why aren't you investing yet?  What type of investing do you want to do?

@Jennifer Bowen Why aren't you investing yet? What type of investing are you wanting to do?

@Donnie M. Thanks for the shout out.  How is your investing plan coming along?

Hi @Matt Bell - thanks for the reply!  I invest locally, i.e. where i currently live which is WA state - and since we're slated to move out to Prattville this summer, I was doing some research before we get out there and before we start plopping down cash :).  We're long term, buy and hold rentals investors, we have 3 so far and closing on a duplex this month.  What worries me about the Pratville/Montgomery area is that there doesn't seem to be much appreciation over the years... but on the flip side... the cash flow for the homes seem to be better than in my local area.

What type of investing do you do in that area?  Are you in Montgomery, or do you venture out to Prattville also?

@Jennifer McElliott

We do both flip and buy/hold rentals.  We have 13 rental units, 9 single family, 2 townhouses, plus one duplex.  You are right with regards to appreciation - it doesn't happen much in this market.  The values tend to be stable and rental returns are better than other markets - plus the cost of entry in the market is quite low.  My business partner and I live in Houston, Texas but invest in Montgomery due to the cash flow metrics we can achieve and the equity we can easily create from buying cheaper homes that need significant rehab.  For example, we purchased a home for $35,000 and invested $30,000 in the rehab.  The home appraised for $110,000 and rented for $1,095/mo.

We have been considering investing in Prattville but the homes there do not hit our metrics of 1.5% rent to total invested ratio (e.g., $100,000 investment should bring $1,500/mo rent).  And we need the rehabbed property to appraise for at least 20% over the invested amount so we can cash out all our investment and re-deploy the same capital on future deals.  And in the best case scenario - we can cash out extra money.  For example, the home that appraised for $110,000 we cashed out $85,000.  So at the end of the day we had a great cash flowing rental and $20,000 more in our capital account than we started and still had a cushion of $25,000 in equity.

that's great @Matt Bell  you're like the Brandon Turner of the South!  That's the technique we've been wanting to venture into, but the numbers up here in our local area don't really work out.  How do you manage to do the flip from TX?  I imagine you have a team set up locally from when you lived there?  Do you use property management or are you able to manage them all on your own?  Have you found that most of your tenants are military - working at the air force base?  Are you guys doing yellow letters in order to find below market deals or REOs?  

Local team from when I lived there plus referrals and networking. We do use property management - Partners Realty. We have some Air Force, some students, and then just general population. We currently buy everything off MLS or through referrals to our Realtor from estates or his network. We use Jason Head and he is awesome. Tell him Matt sent you!

@Matt Bell I have not gained any ground in my investment goals, yet. My one rental is still going strong and I just got a SFH under contract for 34,500 that will rent for 785 and needs ~10k in repairs. I have had the epiphany lately that I must reach out to a portfolio lender that will allow me to cash-out refinance after 2-3 weeks of owning the property because waiting 6 months leaves no room to scale. Thanks for asking how it's going and I see that you are still steadily increasing your portfolio.

Im from the Montgomery Area and Im a new and upcoming Real estate Investor I already have a few Buyers that told me to send them deals to look at , Im looking to network with other investors in the area.

Hello everyone,

I was doing some research about Alabama real estate market and happen to find an article with list of cities which experienced significant prices drop during last year. One of the cities was Birmingham, AL with a drop of 10900 or 13%.

  • March 2017 median list price: $79,900
  • March 2018 median list price: $69,000

 I was wandering if Montgomery AL experienced similar prices decrease. Another thing is what caused such significant drop in prices? 

@Boris Sarana In my opinion it’s because there are tons of cheap properties. Most need lots of repair. Lots of C and D areas. The A or B areas have cooled off as far as market and Prices. This is for the Birmignham area. Not sure on Montgomery.

@Tanner Nicholas, thanks for you opinion, that is very interesting. Right not the economy is at full employment and in most parts of the country the situation is opposite - very high appreciation. Are there a lot of new developments in the city that is pushing prices down or there is something else (less jobs etc) ?

I hope you don't mind me chiming in.   Birmingham is full of C & D areas.  However, many surrounding towns are filled with A & B communities.  Mountain Brook, Inverness, Vestavia Hills, Hoover, etc will yield a higher quality tennant.  Montgomery (though small than B'ham) is structured similarly.  

I have had great luck with properties in Montgomery. I have 40 rentals in Montgomery in the rent range of 750-950. I can answer any questions you have just ask away.

@Greg Allen , thanks for your input. I will look at the areas you mentioned to see if the numbers make sense.

@Corey Demers , congrats for having 40 rentals. Have you bought anything recently (6 months) and if so what is the cap rate on these properties if you do not mind sharing. 

Sure I have bought in pass 6

Months.  I buy one every three weeks or so.  The goal is to spend 40,000 or less then rehab the property completely and find a renter in 2-3 weeks max.   Then do it all over again.  Properties in my area rent from $750-$950.   Goal is never have more then $50,000 in it and rent for $10,000 per year.  

@Corey Demers , that sounds great! I am wondering that in that price range you are targeting C/D type of neighborhoods. Are you managing your properties yourself or hire management company ?

This post has been removed.

Originally posted by @Boris Sarana :

@Corey Demers, that sounds great! I am wondering that in that price range you are targeting C/D type of neighborhoods. Are you managing your properties yourself or hire management company ?

I am not really sure what C/ D type areas are.  I live in the area so I know what neighborhoods are acceptable to buy rentals and I know which ones I would completely stay away from.  

Yes I manage my own properties, that way I know everything is handled correctly.  

Originally posted by @Patricio Alvarez :

@Corey Demers Are your BRRRRing these properties? How are appraisals coming in after repairs?

I just buy the properties - pay cash - renovate the propties myself - then rent them myself.  I don’t ever refinance so no real reason to get appraisals.  That being said comps in the neighborhoods are still pretty strong.  Just no reason to sell when the rental market is still very strong.  

@Corey Demers That is awesome. How long is it taking to get tenants into your properties? Do you find the properties yourself or go through an agent or broker?

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