Huntsville Alabama Path of Progress

64 Replies

Good Morning Everyone,

I'm interested in purchasing property in the Huntsville Metro. The area looks safe and rent/price ratio is fantastic. Does anyone know where the path of progress is heading in Huntsville and who the major employers are? Are there plans for more jobs/growth in the area?

Thanks

As a Huntsville native, I can tell you the success of Huntsville is still largely tied to Redstone Arsenal (https://en.wikipedia.org/wiki/Redstone_Arsenal) and Marshall Space Flight Center. Long term, Jobs and growth largely depends on what the Federal Government does. If they cut NASA funding, that will hurt Huntsville or if they decide to fund more missile defense research that will help Huntsville.  Looking at previous Base Realignments and Closure (https://en.wikipedia.org/wiki/Base_Realignment_and...) has helped Huntsville but no guarantee about future BRACs. The engineering concentration has produced some commercial engineering companies  (ADTRAN, etc)


Major Employers

   - Aerospace/Defense

       * Lockheed

       * Raytheon

       * Boeing

       * Northrup Gumman

   - Commercial

       * ADTRAN

       * Schools System

       * Hospital


As for path for progress, I would recommend you research where Google Fiber is going in and the South Parkway Extension (http://www.al.com/news/huntsville/index.ssf/2017/0...)

The rent/price is okay but I would not expect much appreciation. Be careful, the nicer rent/price is around Alabama AM or Oakwood which have some bad areas and a more transient tenant base. 

@Michael Weir Thanks for your thorough advice. It looks like if the government pulls funding for defense contracts then Huntsville will be hurting pretty badly. 

In terms of danger zones or crime ridden neighborhoods, are there any areas that I should stay away from?

There are some areas around Huntsville but I do not which areas are C/D areas and which areas you should not invest in.  

@Sean Pan I think you have identified a great market. Looking at it myself. New Toyota/Mazda megasite is going to bring in 4k direct jobs, and others to support growth. I have a few areas identified as "danger zones", and echo @Michael Weir 's sentiments regarding Oakwood area.

Have you given it any further research?

@Jack S. haven't fully committed to Huntsville yet. I'm also looking into Knoxville and possibly Memphis. I have properties in Jacksonville and love the area, but I want to start looking at emerging markets and purchasing apartment complexes in those areas.

I created a map for new and out of state investors for the Huntsville area, such as myself. It's open to the community and editable by anyone with the link. Since I don't know how different areas compare with one another yet, this might be helpful to folks interested in Huntsville and surrounding areas like Madison, Harvest, Decatur. For instance @Michael Weir  and @Jack S.  you recommend avoiding Oakwood area. Maybe you can draw out the area on the map and add a little description why? I added a sample area and rated it C-, but that is there just for an example, with a made up description with nothing based on reality.

Google Maps: Huntsville Area REI

Check it out and everyone feel free to edit it if you are knowledgeable about specific areas. Perhaps we can "crowd source" some knowledge and help all investors.

Good Morning Everyone,

My daughter is a student-athlete at UAH, she is a Sophomore, and I am considering purchasing a home near the campus and use it as a rental for her and 2 of her roommates. I also would like to eventually purchase a small multi-family, 4 plex, in Huntsville or the surrounding area. Can anyone recommend a local investor friendly bank in the Huntsville Area, to build a relationship?

Thanks

Originally posted by @Greg Spring :

Good Morning Everyone,

My daughter is a student-athlete at UAH, she is a Sophomore, and I am considering purchasing a home near the campus and use it as a rental for her and 2 of her roommates. I also would like to eventually purchase a small multi-family, 4 plex, in Huntsville or the surrounding area. Can anyone recommend a local investor friendly bank in the Huntsville Area, to build a relationship?

Thanks

Updated 8 months ago

Greg, I'm not certain about the lender situation but if there's anything I can do to help regarding Huntsville, let me know. UAH is a solid university.

Thank you, Michael...I am trying to work Brandon's 7 year plan to 7 figures, and get started in Huntsville, but need to purchase a single family home near the campus this year. Do you know if Huntsville has a local REI group to meet local investors and network?

From an investing point of view, the city of Madison which is about 4 miles west of Huntsville is a growing area and they continue to build and add commercial properties and shopping centers in that area. 

Originally posted by @Jacob A. :

From an investing point of view, the city of Madison which is about 4 miles west of Huntsville is a growing area and they continue to build and add commercial properties and shopping centers in that area. 

 Thanks for the bit of info Jacob.  I was looking at Huntsville but will also check out Madison.  

Hi, @Brian Reynolds , Love your map. looking at your map, the path of progress area is a good area to invest, but some of the other areas are not yet mapped to a/b/c/d yet...

@Lena Wang   I am not familiar with Huntsville.  We need some local experts to contribute to this map for the benefit of everyone :)

@Greg Spring I've used Iberia in Huntsville. Kristen Strickland is great. I've heard good things about Eva Bank (investor friendly/possible 85% LTV loans) as well. There are a lot of affordable housing options in close proximity to UAH. You shouldn't have too much trouble.

@Steve Weihe and @Jacob A. the Madison area is good but there is a lack of smaller multifamily properties. It is mostly a community of SFRs, larger apartment complexes, and some new commercial. I haven't looked at specifics but I would also guess the rent/own ratio isn't favorable to investors when you take out the large apartment complexes. I would also avoid Michael Avenue along Wall Triana as this is one of the only crime ridden parts of Madison. 

I'll be making a trip there in a month! Looking forward to seeing the inventory!

nice addition @Michael Hajduk thank you!  @Sean Pan as you're driving around and getting a good feel for areas, please feel free to update the map for the benefit of everyone.

Hey @Sean Pan , something tells me you read Michael Lindahl's Emerging Markets book!

I'm in the Bay Area and I'm flying out to Indy. I hear good things about Huntsville. 

Happy to swap research with you. So far I've built out a spreadsheet with contacts ranging from Agents and Brokers to Lenders, Inspectors and Property Managers. 

Happy to talk shop with you. There is an opportunity via a Meetup i recently attended I think you may be interested in. Shoot me a PM when you have a moment. 

Just getting started with small group here in CA and we've been looking at the AL/TN areas as possible first investment spots. We originally looked into Nashville but I'm wondering if that's pretty crowded at this point. We're now investigating Birmingham, Huntsville, and maybe Memphis as well. So this Huntsville conversation has my interest. The map is a great resource!

@Kirk Shaffer I'll actually be heading to Birmingham next week as well! I'm currently looking to purchase a multifamily commercial property. We'll see how it goes!

35801, 35802, and 35803 are the Huntsville City School District’s zips with highest school ratings. Several Federal Blue Ribbon designations. 

Huntsville is a great place to invest/flip on the lower end, but bang for buck is likely in rentals. The rental market there is as hot as the development market here in West Nashville.  Huntsville is one of America’s most educated cities... but it’s full of government and government contractors...so many only have short term needs for housing.

Just FYI lol.

@sean pan, I work up in the Silicon Valley a little bit, do you attend any REIA’s up there?

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