Reasons to invest in Birmingham
I have seen a lot of chatter on investing in Birmingham and after some research I do not understand the hype. From a macro purposes, the population is declining and job growth is minimal. What are the reasons that are enticing folks to invest there? Much appreciated!
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Hi! I agree to what Jason Cory and Jack are saying. I have been both buying here for myself and my own porfolio and helping investors buy here for years. There is rental demand and jobs! Just broke ground on the new Amazon distribution center, new growth for Mercedes, Toyota and Mazda. These are all BLUE collar jobs and my renter. Birm has very diverse jobs- agriculture, Hospitals, government, Military, Auto, colleges, etc. I like the diversity in the jobs. 56% of the population are renters and going up. The low property taxes are great and ranked top 3 for most landlord friendly. If the properties are priced correctly to rent- they rent. There is demand. This is a CASHFLOW market, not a growth one. If you have your expectations in check you can get a lot of bang for your buck. Where else can you buy a property for $100k in a B class area that gives you 17% cash on cash returns? Not a lot that is for sure. I just bought this property..... and PM found a tenant at $1000/mo within 2 weeks and the tenant just asked if it was ok to plant a flower bed. (um yes please). The other thing is that this market isn't easy to grade by zip code. If you do that- you are missing out on opportunities- because it is really neighborhood by neighborhood and street by street. Generally, you can look at income and prices by zip code. But you really need someone who knows the areas and can find you deals. Not sure if you are looking to flip, Brrr, hold, etc. If you are in it for cashflow- Alabama is winning.