Huntsville, AL Rentals and Multifamily

6 Replies

We just went under contract on a medium size multi family unit on Patton Rd by Redstone Arsenal and wanted to see if anyone can shed light on the area. Have heard a few negative comments about the area. A lot of multifamily around, but when we walked our unit, it certainly felt safe. The unit is all 1/1's that are currently rented at $425 on avg, but the unit is in pretty rough condition. A lot of comps seem to be all over the place, but we were looking to stabilize around $475-500 over the next year or two. So basically looking for the following answers:

1. Thoughts on Patton Rd area?

2. Market rent for 1/1 in that area?

3. How is vacancy in the area?

4. Recommendations for property mangers?

That is going to be a C or D neighborhood depending on the exact location.  

I can't answer the other questions about the area simply because we do not look at any properties in that location whatsoever.    

$475-500 might be pushing it for a 1/1, $425 sounds about right to me. I also consider that area C/D neighborhood. I personally don't buy in 35805 unless it is north of Drake Ave.

You can PM me for some property manager recommendations.

Hi @Rylan Kean

I do invest in that area of Huntsville because the cashflow numbers are pretty good.  Many local Huntsville investors do not go into that area mainly because some of those neighborhoods are the Huntsville equivalent to a D class neighborhood.  Mainly those south of Drake Ave as @John White mentioned.

With that if you could find a strong property manager you may be able to slowly transition those rents to a little higher but there are still 1/1 which may be difficult.

Thanks everyone. The property is south of Drake, but it appears to be cash flowing really well with full tenancy. Still analyzing the deal, but I certainly have some strong concerns about it. With the continued gentrification of other areas, these areas will surely get a boost in residency from those who need sub $500 rents. At least I would think. 

Would love to connect better with anyone during one of our trips down. We are going to a few REI meetings and want to network with you all. Our structure has always been to help bring up neighborhoods so that everyone wins.

Thanks everyone. The property is south of Drake, but it appears to be cash flowing really well with full tenancy. Still analyzing the deal, but I certainly have some strong concerns about it. With the continued gentrification of other areas, these areas will surely get a boost in residency from those who need sub $500 rents. At least I would think. 

Would love to connect better with anyone during one of our trips down. We are going to a few REI meetings and want to network with you all. Our structure has always been to help bring up the neighborhoods we invest in.

I’ll reiterate what many here are saying. I only purchase properties in 35805 on a case by case basis (currently west of Triana and south of Govenors). 

If you really made the unit’s nice, you could potentially get $450-$475 but I think that would be the top of the market in that area. 

Vacancies will fluctuate depending on property management and criteria. 

I’ve personally used Huntsville Premier Real Estate as a property manager and they’ve been great. I’ve inherited tenants from Rocket City Property Management and they seem to be good managers. 

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