Advice from locals in Birmingham, AL

Advice from locals in Birmingham, AL

Investor · Kusatsu, Shiga · Member since 2015 · 147 posts · 87 votes

Hi guys,

I live and work in Japan, but I currently own seven SFH rentals in the US. I bought two the traditional way and the other five are turn-key. I completely lucked out with my turn-key company in Memphis, so I sort of blindly invested with a Birmingham turn-key company. I have to admit, I didn't do as much homework as I should of, but everything seems to be OK. Now, I would like to continue building my portfolio there with a couple more houses and I would really appreciate some local market insight.

The home I own currently is in the Fultondale area (35068). I bought it for $94,900 and rent it for $975 a month. It's rented to a section 8 tenant. Most of the other properties this company sells are in the Center Point area (35215). Does anyone invest in this area? What can you tell me? If I were to post some properties would you be able to tell me what you think of the area?

Keep in mind, I'm not trying to debate turn-key versus traditional investing or SF versus multi here. I have a unique situation and this is just a part of my real estate investing plan, which includes local properties as well. 

Thanks,

Daniel

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Flipper/Rehabber · Birmingham, AL · Member since 2016 · 74 posts · 58 votes
9y
Hey Daniel Mills Centerpoint is one of the best zip codes in Birmingham for ROI and cash flow. It has a low barrier to entry and rents are about he same as your Fultondale property, depending of course. I classify it as a B-/C+ neighborhood. I currently have property there and am looking for more. Feel free to DM me is you have any more specific questions.
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  • Flipper/Rehabber · Birmingham, AL · Member since 2016 · 74 posts · 58 votes
    9y
    Hey Daniel Mills Centerpoint is one of the best zip codes in Birmingham for ROI and cash flow. It has a low barrier to entry and rents are about he same as your Fultondale property, depending of course. I classify it as a B-/C+ neighborhood. I currently have property there and am looking for more. Feel free to DM me is you have any more specific questions.
  • Investor · Kusatsu, Shiga · Member since 2015 · 147 posts · 87 votes
    9y

    Thanks @Jamie O'Brien. The turn-key company I’m working with also has wholesale properties. Maybe there’s something you would be interested in. I’ll DM you. 

  • Investor · Kusatsu, Shiga · Member since 2015 · 147 posts · 87 votes
    9y

    @Jamie O'Brien, is the whole area C+/B- or are there some areas to avoid?

  • Clayton MobleyPro Member
    Birmingham, AL · Member since 2014 · 875 posts · 947 votes
    9y

    Hey @Daniel Mills Birmingham is a decent sized place, so there is definitely variability from zip to zip, and from street to street within zip codes. That's why it's so important to work with people who actually live and work in the market you consider (as I'm sure you know). There was a thread about Birmingham zips for investment a while back that may be of use to you: https://www.biggerpockets.com/forums/311/topics/22…

  • Investor · Kusatsu, Shiga · Member since 2015 · 147 posts · 87 votes
    9y

    Thanks, @Clayton Mobley, I will check it out. 

  • Flipper/Rehabber · Birmingham, AL · Member since 2016 · 74 posts · 58 votes
    9y

    @Daniel Mills - @Clayton Mobley is more of an expert than I. I think the post he referenced is excellent! I, personally, would buy anywhere in Centerpoint (to answer your question) however, I would want to buy lower, and probably "tenant proof" houses more in the north-west area of sun valley in Centerpoint. I just say that based on the crime heat maps provided by Zillow, realtor.com, etc. However, it is nowhere near a war zone. Good luck!

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