Updated almost 6 years ago on . Most recent reply
Pricing in Birmingham, AL Neighborhoods
Hello Bigger Pockets! I'm somewhat of a newbie on here, mostly a reader and haven't posted much. I'm working on finding my next deal after a fairly successful BRRRR in Chelsae, AL. I've been reviewing properties in the Northeast Birmingham area and I've found a little pocket east of Crestwood North and south of South Woodlawn. Just looking at the map, the price disparity in this little pocket ($50k) compared to Crestwood North ($300k) seems pretty dramatic. Do any Birmingham investors have any insight? I believe the area is called Oak Ridge Park. I know prices can vary from street to street but that's almost worth taking a chance to me.
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I live in Birmingham and invest here. Crestwood is HOT right now for owner occupants, as folks are priced out of Forrest Park and Avondale, but still want to live close to all the cool things happening in that area of town/want to be close to work in downtown Bham. I think you may have a good shot with the Oak Ridge Park area, but be aware that you're heading into C and D class areas. Anything on the other side of I-20 is going to be a much higher-crime area - anything close to Eastlake falls into that category. Be very, very careful with your comps. I'm currently in a "fight" with an appraiser on a BRRRR property north of town because he didn't pull the same comps that I was looking at and valued my property very low. Trying to fix that now...
The difference between a BRRRR property in Chelsea and attempting the same system on a property in Birmingham city is significant. Few houses in Chelsea are more than 30 years old, but Bham city will have 100+ year old properties and not a lot newer than mid-century. School district is HUGE here in Bham, as most of the outlying districts are very, very good, and the Bham City schools are very, very poor.
Bottom line - deals exist, but be careful and talk to a local agent who specializes in that area.