Updated almost 5 years ago on . Most recent reply
Birmingham Turnkey Rentals
I'm looking at buying some property in the Bellview Heights area from a turnkey provider/investor. I've been to Birmingham several times in the last few years, but never to scout the city for property (visiting UAB Hospital). I'm curious if any local investors would consider $72-85K a reasonable price for a house that's been fully rehabbed (new electrical, roof, flooring, all cosmetics) and have section 8 tenants? I'm looking at buying 3-4 properties from the seller, and my numbers look good - 15% COC ROI and 8% CAP rate. Just wondering if I should be considering anything else to make sure this is a good deal.
Most Popular Reply
I disagree with the comment about staying away from Birmingham City schools. It is correct that they are not desirable, but some of our priciest retail neighborhoods are Birmingham City schools, and people buy in there who are planning on either homeschooling or sending to a private/community school (my family included, we live in Glen Iris 35205, have 4 kids and homeschool).
The best cash-flowing properties will likely be zoned for Birmingham city schools, and plenty of flip opportunites will as well (Southside/Glen Iris, Highland Park, Forest Park, Avondale, Crestwood). Of course good public schools would help with sale/resale, but definitely not necessary to justify a wise investment in Birmingham.