Center Point, Alabama - Vacancy Rates

7 Replies

Has anyone else been noticing a slow climb in vacancy rates for Center Point properties (35215 and even parts of 35235)?

The time to lease and vacancy have been higher than expected for 2019 based on my experience from the last few years. I also see far more properties available for lease than I have noticed in the past which has me fearing over saturation.

My sample size is the dozen properties we own over there so I’m not certain if it’s our strategies or the market as a whole.

-Dave

Keywords: Birmingham, Alabama, lease, vacancy, rent, buy and hold

Those areas vary street by street and if you are not familiar with the area I would stay away. Some parts of 35235 have Clay/Chalkville school which is decent or parts of Huffman with 35215. Pinson 35126 is good school. 

Stay away from Center Point Schools. Lots of stealing and shooting and City of Center Point is a pain for Landlords. Good Luck. JP

@Dave Williamson Unfortunately, you are now pretty well stuck in Centerpoint. The city got tired of funds and turnkey providers destroying their home values while increasing the crime in the area. This has led to many moving a little to the east, Grayson Valley (35235). It's a perfect example of why I say go to an area no one else is interested in to avoid the de-gentrification that will eventually follow. Local investors left well over a year ago knowing this was coming to Centerpoint. Now everyone is rushing to get their properties rented trying to slide a tenant in before the city starts enforcing the inspections and fines. Grayson Valley is unincorporated but part of the Huffman school district. Investors are trying to do to Grayson Valley what they did to Centerpoint now. Hueytown, Pleasant Grove, turnkey suburbs, etc., will follow the model of Centerpoint because they are owner occupied cities not tenant occupied. Cities are going to protect their infrastructure/revenue. This is also a way for a municipality to collect the revenue tax based on each properties income statement since they can identify which is making money and which is owner occupied.

Feel free to reach out to me to discuss this more in-depth. 

An article explaining the headache coming to Centerpoint. Link

@Jessica Rhodes My investment strategy is not for everyone. I only hold in Section 8 areas. A lot of investors believe buying in B areas is a safe investment. I think some or many are coming to the realization in the current conditions that pretty areas go south faster than other areas. I haven't missed a rent payment yet because it's not dependent on the economy. My hold areas are 35211, 35208, & 35206 with south in the address. You can easily buy a house in any one of these zip codes for $60,000 (purchase & renovation or turnkey) and get $800+ in rent for a 3 bedroom. My 3  & 4 bedrooms range in rent from $825 to $1,074. If it's not a Section 8 tenant your investment isn't protected right now. Houses are older in these areas and built a lot better than newer houses. It's harder to break older houses and less expensive to maintain and renovate. Insurance and taxes are less expensive also. 

The above is just my opinion but I rarely get calls for maintenance and never miss a rent payment regardless of what's going on in the world. 

Originally posted by @Jessica Rhodes :

@Jason Cory

Ok so if I’m not buying a section 8 house is Centerpoint still a bad idea?

Personally I wouldn't touch Centerpoint for any reason. The hidden agenda of the city is to identify the houses that are rented so they can collect revenue for annual inspection fines & mandatory permits for renovations/repairs. What most won't tell anyone is once they identify it's rented you now have to give an income statement for each property & pay revenue tax on the rent received. Investors that own houses are stuck now. 

I'd run like Forrest from Centerpoint if it was me.