Birmingham Areas

13 Replies

I'm starting to research the Birmingham area for SFRs and Multi-family, long term buy-and-holds. I'm looking for a B class neighborhood. Can anyone point me to the right zip codes to research? Also can someone recommend an investor friendly agent and property management? Thanks, BP! 

Hi @Daniel Highsmith , the zip codes above are great. We have mostly stuck with 35235, 35215, and 35023 (Hueytown) due to the ease of finding quality investment properties in B neighborhoods.

Before hiring an Agent, it may be helpful speaking to a couple turnkey providers. My first three properties were turnkey, and the experience was great. TK can be a good way to minimize variables so you can have less risk while starting out. There are also a few "turnkey" providers in Birmingham who will find wholesale properties for buyers and manage the rehab, rental, etc for you. They typically call it "turnkey for a fee," and it can be a great way for beginners to get their feel wet while acquiring buy-and-hold properties below market value. 

I would be glad to discuss my experiences. Feel free to shoot me a message or give me a call anytime.

As for Hueytown, you want to make sure that the elementary school is not Brighton. On the other hand if elementary school is Concord that is very good. Good luck JP.

@Daniel Highsmith The advice you've gotten so far is great. I've talked about this several times here on BP so, without just repeating myself like some sort of crazy Birmingham spammer, here are two links to threads about this very issue in which I lay out specific zip codes or neighborhoods and what makes them good or great for turnkey (solid B/B+ areas only, we don't invest in C/D/War Zone props, and there's no cash flow in A properties). Not all B/B+ areas are alike, so it will be up to you to decide what attributes are most important to you in a property (school zone, commute to big employers, new businesses or developments, etc). 

https://www.biggerpockets.com/forums/311/topics/31...

https://www.biggerpockets.com/forums/311/topics/22...

And, while I am obviously biased here, I would also second what @Dave Williamson said about using turnkey as an entry in REI. Many people find that self-managing is a bit of a tall order when they first start out, so going the turnkey route can be a great way to put your money to work without being responsible for the day-to-day management of your investment, which means you can still begin building your portfolio while you continue to learn the ropes. Then when you're ready, you can move in self-managing or flipping or any of the other more labor-intensive investment niches. You'll have more knowledge, more experience, and the benefit of a little extra income padding to help you succeed.

Anyway, just my two cents ;) I wish you the best of luck in Birmingham! It really is a great town for REI.

Clayton

Piggybacking on this three year old thread, I have just started looking into Birmingham and noticed a lot of the zip-codes mentioned here are Northeast of the city center, meanwhile I was finding better cash flowing properties to the Southwest (35204), can anybody give me insight on to whether this is a bad area?

@Daniel Highsmith @Clayton Mobley @John Patton

I personally would not buy in 35204. I would not buy anywhere in southwest or west Birmingham. I grew up in the area. I drove thru the areas 2-3 times within the last 18 months. It seemed that every 2-3 blocks a house or houses were either burned out or boarded up. I call these areas B&B areas. Also check the crime reports about shooting and stealing. Sure you can get in cheap but at what other price do you pay down the road. Good luck. Jp

@Juan Carlos Castillo Newbie here, but local to the area. I would say 35204 zip-code is a mixture of D-F class. 

Upsides: 

  • -it's close to downtown
  • -a lot of up-and-coming neighborhoods surround the area and the location is close to a lot of stores & other amenities
  • -the homes are relatively cheaper in this area 
  • -I would say there is still a demand for rent, but there isn't as high of a demand here as there is in other locations in Birmingham, due to the neighborhood conditions

Downsides: 

  • -High crime area
  • -the homes are cheaper which could mean more work is needed, as most of these homes are older homes and/or have a lot of wear to them, due to location
  • -rent is lower, and you probably won't be able to raise your rent prices, due to a lack of high-demand here.

So, like @John Patton stated, yes the property is cheaper, but due diligence will be your best friend. Depending on what you're looking for, it may be a great opportunity!

Thank you everyone. That's what I was thinking. The schools rating on Zillow is the lowest I've ever seen and did notice a boarded up house just down the street on google. However I do like the numbers and that it's only 5 minutes from UAB/downtown. I will have to carefully consider this.

😊 Thanks again. @John Patton @Briannan Burns @Maureen McCann

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