Denver, CO · Member since 2016 · 4 posts · 2 votes
Hi All,
My new job is going to relocate me to Alabama where I
can choose to live in either Birmingham or Huntsville. My main goal is
to buy a 3-4 plex that I can live in for a year before buying a 2nd one.
Does Birmingham have a decent inventory of 3-4 plexes where this
strategy would be viable for me? Is there a certain neighborhood or suburb of the
city where a majority of them are? Does one of these cities have many more 3-4
plexes than the other (Bham vs Huntsville)? Any advice would be hugely appreciated!
Lender · Santa Rosa, CA · Member since 2017 · 283 posts · 255 votes
6y
I find the Huntsville small multifamily market to be very limited supply and generally I don't like the numbers. However, for a live in, you might find some viable properties in 35801 or 35803 which are both nice. I'm partial to Huntsville and think the long term prospects are stronger there but there is probably more inventory in Birmingham. @Peter McDonough@Gorden Lopes@Dena Puliatti Peter and Gorden are investors who I are having success with small multi there and Dena is a property manager and agent who can feed you some options.
Lender · Santa Rosa, CA · Member since 2017 · 283 posts · 255 votes
6y
I find the Huntsville small multifamily market to be very limited supply and generally I don't like the numbers. However, for a live in, you might find some viable properties in 35801 or 35803 which are both nice. I'm partial to Huntsville and think the long term prospects are stronger there but there is probably more inventory in Birmingham. @Peter McDonough@Gorden Lopes@Dena Puliatti Peter and Gorden are investors who I are having success with small multi there and Dena is a property manager and agent who can feed you some options.
Real Estate Agent · Birmingham, AL · Member since 2018 · 59 posts · 36 votes
6y
Kyle,
Similar situation with the Birmingham market - not a lot of inventory. At least, not on MLS - most small mutifamilies trade hands here off-market. I'd say the sweet spot when it comes to price, neighborhood and demand is going to be 35205, the community known as Southside. Tenant pool is humongous due to University of Alabama in Birmingham (UAB) and it is mixed in with very desirable, historic single family homes that are also in high demand, both by investors and owner-occupants.
There are lots of small multi families in 35206, that would likely be the next best opportunity for you. Then West of downtown there is plenty of multi families, though the pockets of neighborhoods we on here would label “C class” and above are far and few between.
Specifically for small multifamily, I think Birmingham is a better option as there is more inventory than Huntsville.
Based on my limited knowledge all the small multifamily in Huntsville is concentrated in few areas which are mostly C class at best and the numbers are super inflated right now!