Tiplexes and Quadplexes in Birmingham?

Question

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!

Dave DeMarinis · Answer

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 Schrimsher 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.

Rob Drum · Answer

@Kyle H.

@James Rodgers is spot on about 35205.

35210 is a good place to look too. Best quad I’ve ever sold is in there. Turned into a slam dunk house hack for my client.

Also, the Hoover area has a handful of quads and duplexes, but the numbers won’t be as good.

Gorden Lopes · Answer

Hi @Kyle H.!

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!

Peter McDonough · Answer

Agreed with Gorden.The mulifamily on the market in North Huntsville is at least 100k over priced for the rental revenue produced.  Crazy.

Denise Evans · Answer

@Kyle H., Don't overlook Cullman, which is the fastest growing county in Alabama. It is equidistant from Birmingham and Huntsville.

Kyle H. · Answer

Thanks very much for the insight guys

James Rodgers · Answer

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.

Hope this helps, happy to discuss further.

Tiplexes and Quadplexes in Birmingham?

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