Huntsville Alabama Market push

Rental Property Investor · Seattle, WA · Member since 2018 · 18 posts · 5 votes

Hello BP, New to out of state Investing I only have property instate Seattle. Looking into investing into Huntsville. I have some boots on the ground there already and looking to build a team. Has anyone done this already? How is the rental market there currently. I’m seeing more of a flip market but in initial research phase. Looking for a good agent. Thank you for your time and advice.

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Melissa Nash

Rental Property Investor · Orange County, CA · Member since 2016 · 740 posts · 529 votes

In addition to that...... in any market when ever a new employer comes to town you have to look into who they are employing and what THEIR budgets are. For example for the new FBI jobs- most likely these are high income earners right? Will they want to rent a $800/mo 1200 sq foot house? or will they want to buy a $300k house or rent a $3000/mo house? Who are getting the jobs and is there rental demand for those jobs? that is the question for all markets. In Montgomery, there is a new Amazon distribution center going in, this is the perfect example of a blue collar job and these are your potential renters. The expansion of Mercedes Benz factor outside of Birmingham, the Mazda factory outside of Huntsville---these are all blue collar jobs. Ask yourself what is your threshold for the type of tentant you want? Higher end neighborhoods and priced properties are ideal--- but you have to give up your cashflow there. Consider who is YOUR ideal renter and YOUR goals and risk levels and then work around it that way.

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Melissa Nash
Rental Property Investor · Orange County, CA · Member since 2016 · 740 posts · 529 votes
7y
Hi Jake! Just run your numbers on cashflow, deals are very competitive right now- but you can get good cashflow in the C+ areas right now. The higher end areas are squeezing out the cashflow and very competitive with so many investors and hedge funds that have emerged into this market. I don't do as much there right now because of appraisal issues and too much competition for a cashflow market. Alabama has always been a cashflow very linear market- so I refuse to overpay there and "hope" for that growth. I prefer to stay in Birm and other areas. My contractor also left Huntsville-- Let me know if you need contractors in other areas, I can give you a name or two.
@Jake Waslaski
1 Reply
Greg Dickerson
Developer · Charlottesville, VA · Member since 2018 · 4k+ posts · 4k+ votes
7y
I do out-of-state deals. You really need a great team and you really need to know the market intimately and in detail. Every area is different and every area has pockets that are better than others. Rental demand is easy to track down and take a look at craigslist and talk to some management companies to find out supply demand metrics. I’m not a fan of renting single-family homes much less out of state single-family homes. I only flip, build new or wholesale out of state.
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Jake Waslaski
OP
Rental Property Investor · Seattle, WA · Member since 2018 · 18 posts · 5 votes
7y
@Greg Dickerson Appreciate the information I’m vetting PM companies in the area and will question the rental market to them as well. Good call checking Craigslist.
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Marcus B Hsu
Rental Property Investor · San Diego CA · Member since 2019 · 68 posts · 51 votes
7y
@Jake Waslaski, i live in SD and heading out to Huntsville in May to establish the team. i believe with the potential growth Huntsville has, influx of people will be going there for new jobs, hence rental market will be good. PM me if you are still looking for agents, be good if we can share contacts, as i'm still trying to figure out the rest of my team. i have found an agent i'm going with and am in process of purchasing my first SFH in huntsville.
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Caleb Bryant
Rental Property Investor · Huntsville, AL · Member since 2015 · 401 posts · 309 votes
7y
I'm in Huntsville for all of you people that are looking to visit the market. I invest here in the single family space (although I would like to pick up a large multifamily). Also me and my partner wholesale deals from time to time. Let me know if I can be of any assistance to any of you.
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Peter McDonough
Rental Property Investor · Huntsville, AL · Member since 2015 · 181 posts · 136 votes
7y
Huntsville local as well--let me know how I can help!
2 Reply
Sharon Williams
Rental Property Investor · Member since 2018 · 32 posts · 18 votes
7y
@Jake Waslaski Hi Jake! Check out Michelle Cummings for property management. PM me if you cannot find her number.
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Terence Lee
Rental Property Investor · Pasadena, CA · Member since 2011 · 9 posts · 5 votes
7y
Hi, I'm interested in investing in Huntsville as well. I'm more interested in multi-unit properties.
1 Reply
Barb F.
Northern Virginia · Member since 2019 · 59 posts · 22 votes
7y
@Caleb Bryant @Caleb Bryant I’m in town visiting from Virginia through Sunday night / Monday morning! I’ve been driving around Harvest, Toney, and Madison to get a better feel for the market down here. I’m looking at less expensive homes since I don’t have a lot of cash to get started, but I am looking for partnerships for deals.
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Barb F.
Northern Virginia · Member since 2019 · 59 posts · 22 votes
7y
@Terence Lee The agent/PM I’m going woth was talking with me today about how there are very few multi-families out here. From all the driving I’ve done the last two days, that sounds right to me. She said they get snapped up very quickly and are mostly in the Owen Cross area. Hope that info helps.
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Michael S.
Huntsville, AL · Member since 2018 · 579 posts · 864 votes
7y
For those not familiar with Huntsville, @Melissa Nash is absolutely right.
The market has become oversaturated with buyers/investors with way too little inventory available. Quality properties are selling within 24 hours of list with multiple offers routinely. Right now, there are probably better opportunities for out of state investors elsewhere.
If you're looking for primarily MFHs, definitely not the right city for you. They are primarily C/D neighborhoods and going for crazy prices right now.
1 Reply
Marisa R.
Developer · Atlanta and Detroit · Member since 2018 · 601 posts · 821 votes
7y
Just curious anyone looked at Montgomery? Lower entry point
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Melissa Nash
Rental Property Investor · Orange County, CA · Member since 2016 · 740 posts · 529 votes
7y
@Marisa R. YES!! I buy & sell there now, I LOVE This market. Let me know if you need anything.
1 Reply
Jake Waslaski
OP
Rental Property Investor · Seattle, WA · Member since 2018 · 18 posts · 5 votes
7y
I appreciate everyone's help, looking into one one more location. I have been in a... state of analysis paralysis it seems, but moving past it. I'm going to continue to look into Huntsville mainly because of my personal contact there. Ill re-post when I finally make a move.
2 Reply
Caleb Bryant
Rental Property Investor · Huntsville, AL · Member since 2015 · 401 posts · 309 votes
7y
@James
@James Gatesundefined has experience building a team here from out of state, I'd talk to him some as well. He's a Cali investor
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Lane Kawaoka
Rental Property Investor · Honolulu, HAWAII (HI) · Member since 2011 · 4k+ posts · 2k+ votes
7y
@Jake Waslaski
I have three ~50 unit apartments there and like it much better for growth than my Birmingham stuff because of the STEM jobs there. I'm heading down there in late July with a bunch of folks you might want to come a long and learn.
2 Reply
James Gates
Real Estate Agent · Redlands, CA · Member since 2017 · 199 posts · 487 votes
7y
Originally posted by @Jake Waslaski:
I appreciate everyone's help, looking into one one more location. I have been in a... state of analysis paralysis it seems, but moving past it. I'm going to continue to look into Huntsville mainly because of my personal contact there. Ill re-post when I finally make a move.
Hey Jake, my business partner and I have 6 rental units in Huntsville, we love the market and manage them from out of state. Analysis Paralysis is real, but once you get your first deal under the belt you will have much more confidence to move forward with the second one. Please feel free to message me if you have any questions.
@Caleb Bryant Thanks for the shoutout! Always motivating watching what you are doing in the multifamily space!
2 Reply
Rhonda Blue
Real Estate Broker · East TN Loudon/Lenoir City/Tellico Village · Member since 2014 · 363 posts · 222 votes
7y
I absolutely agree with James. I have 4 rentals in Huntsville, Madison area and the growth that is still to come to the area is awesome. Definitely Analysis Paralysis is real. I also diversify and have 5 short term rentals in E TN that do really really well. Reach out anytime and good luck. Enjoy the journey
0 Reply
Mike B.
Investor · Los Angeles, CA · Member since 2014 · 176 posts · 93 votes
7y
Originally posted by @Michael S.:
For those not familiar with Huntsville, @Melissa Nash is absolutely right.
The market has become oversaturated with buyers/investors with way too little inventory available. Quality properties are selling within 24 hours of list with multiple offers routinely. Right now, there are probably better opportunities for out of state investors elsewhere.
If you're looking for primarily MFHs, definitely not the right city for you. They are primarily C/D neighborhoods and going for crazy prices right now.

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Mike B.
Investor · Los Angeles, CA · Member since 2014 · 176 posts · 93 votes
7y
I've experienced this as well. I was working with a Leading Huntsville Realtor earlier this year and most properties were basically going for market value.... then anything SFR in a decent C+ to A- neighborhood that got listed was under contract within 48 hrs. The 4-plex and multifamily properties were in C or D neighborhoods and looking over financials were cash monthly rent payments, with late payments and maintenance issues, higher crime, more run down properties on the streets, etc... The trick (as usual anyway) will be to find the off-market and value-add properties....
With that said, if anyone has a hold on West Huntsville, Madison, Harvest, or other (B) or better area properties with 7+ school ratings, please let me know. I'd Highly prefer turnkey to get started in the market until I can build a trusted local team (property manager, contractor, lender) to turnover a few properties a year going forward. Like all buy & hold rental investors it would be ideal to have equity, appreciation, and cashflow off the bat if possible, with responsible and friendly tenants that earn 3X the rent on auto-pay with no maintenance issues!!

For the locals in the area that might be able to help pinpoint areas of focus here --- think if you were an established hard working professional (not CEO or independently wealthy) working at for example -- Redstone Arsenal, NASA, Military, one of the Universities or major Hospitals, the airport, a local lawyer, dentist, fireman, police, teacher, business manager, small business owner, corporate executive, etc, etc.. where would you chose for you and your family to live?? If you earn $50-$100k with the ability to select the neighborhood you live in, you probably are looking for a safe, well maintained, nice looking, updated, affordable home, in a neighborhood of similar properties, in a good school district, with easy access to shopping and parks and your work. (Where are these properties??)
Good luck to all and maybe we can join forces to partner on more and larger deals in the area!!
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Peter McDonough
Rental Property Investor · Huntsville, AL · Member since 2015 · 181 posts · 136 votes
7y
Mike B, all of those people live in Madison. It makes no sense, but everyone who gets a job in Huntsville and moves to town is given the same advice. "You've GOT to live in Madison"

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Peter McDonough
Rental Property Investor · Huntsville, AL · Member since 2015 · 181 posts · 136 votes
7y
A solid majority of them*
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Melissa Nash
Rental Property Investor · Orange County, CA · Member since 2016 · 740 posts · 529 votes
7y
In addition to that...... in any market when ever a new employer comes to town you have to look into who they are employing and what THEIR budgets are. For example for the new FBI jobs- most likely these are high income earners right? Will they want to rent a $800/mo 1200 sq foot house? or will they want to buy a $300k house or rent a $3000/mo house? Who are getting the jobs and is there rental demand for those jobs? that is the question for all markets. In Montgomery, there is a new Amazon distribution center going in, this is the perfect example of a blue collar job and these are your potential renters. The expansion of Mercedes Benz factor outside of Birmingham, the Mazda factory outside of Huntsville---these are all blue collar jobs. Ask yourself what is your threshold for the type of tentant you want? Higher end neighborhoods and priced properties are ideal--- but you have to give up your cashflow there. Consider who is YOUR ideal renter and YOUR goals and risk levels and then work around it that way.
4 Reply
Caroline DavisBusiness Member
Real Estate Agent · Huntsville, AL · Member since 2018 · 95 posts · 90 votes
7y
Melissa those are good points....and yes the majority of the tenants that choose our rental properties have been and or are Home Owners. And Yes, high-income earners!

They don't like to compromise their daily quality of life. They are professionals, highly educated and do not like apartment life.....very picky about choosing a rental home .... maybe even more so than purchasing. when you purchase you can make it yours..... you can do updates.. change paint colors.. but, with a rental, you have to accept it and be able to live with it until the next step. They could have homes to sell and/or want to learn the area while gaining the confidence that the job is secure and they like the area ......So, the perfect option is to rent for a couple of years. Comfortable Homes, Good Schools, Good neighborhoods!!!! I totally agree that is the strongest demand in the Huntsville-Madison area. Single Family Homes with high ranking schools!
[email protected]256-653-8289
New South Realtors LLC
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Caleb Bryant
Rental Property Investor · Huntsville, AL · Member since 2015 · 401 posts · 309 votes
7y
@Terence Lee what size multifamily are you looking for?
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