Hi everyone, I've been on the site for some time now. However, I am re-introducing myself because I recently went through a job change (a huge upgrade, I'll add) and moved from Pensacola, FL to Birmingham, AL. This happened just as I felt I was up to speed on the Pensacola market, had done a couple offers, etc., but with the job shake up I put my real estate search on hold for a while.
Anyway, I have spent a couple months in Birmingham now and am actively looking for a property to purchase. I am looking for a single family home to live in and gradually renovate, and convert to a rental in a 2-5 years. I'd like an area that I feel comfortable living in, and that would attract an acceptable pool of tenants. Looking for a 1% rule property, and aiming for an all-in budget of 200k or less (some flexibility on the budget).
I like being close to downtown (where I work), so I have been looking in several of the surrounding areas. My thoughts are that maybe I could find something in south Crestwood or the decent parts of Avondale, but the market prices seem to disagree with my benchmarks so far. Has anyone had any luck finding 1% deals in those areas within the last 6 months, or have other suggestions with regards to locations?
My observation is that deals that meet those criteria in those areas are going to be few and far between, and likely they won't be typical MLS retail listings. Might want to keep your eyes out for FSBO, wholesale deals, foreclosures to be purchased at courthouse, or the online auction websites. But if you are wanting to finance the purchase traditionally some of those methods may not be an option for you.
Those are great neighborhoods though and values are increasing. Keep in mind that the "decent parts of Avondale" were not that way just a few years ago. So if you have a time frame of several years you might consider some of the border areas with upside potential (not so decent areas of Avondale, Crestwood north closer to Woodlawn).
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