Deals to analyze in Birmingham

Real Estate Deal Analysis & Advice
11yFollow

Deals to analyze in Birmingham

Account Closed
Registered Nurse (ICU) · San Jose, CA · Member since 2014 · 496 posts · 332 votes
Please Help. All opinions welcome. Looking to get both C and B class props in Birmingham. 1). B Class SFH 3/1 1800 square feet (addition done on the back) Large Corner Lot No garage Built 1959 Located in Center Point 35215 area code Irwin Schools Price $70,000 Rent $850 New roof, hard wood floors, new HVAC. Older windows. New paint and basic cosmetic stuff. 2) C class SFH 3/1 962 square feet All brick. Located in Bessemer 35020 Hard wood floors, new HVAC, updated plumbing. New paint and basic cosmetics Price: $50,000 Rent : $700
0Reply
14 views

Most Popular Reply

Spencer SuttonBusiness Member
Investor · Birmingham, AL · Member since 2015 · 119 posts · 148 votes
11y

Joey,

I've been buying/selling and managing rental property in Birmingham since 2003.  I have to tell you that those prices are too high. 

There's a lot I could say about turnkey here in Birmingham but I'll save that for another time.  I sat down with out of state investors the other day looking to place 900k in Birmingham and after looking at the list of properties they were presented to buy from a 'turnkey' expert, I had to tell them the truth about that junk list.

Instinctively they thought something was wrong when they visited and saw burned down houses on the same street and a lot of vacant properties.

I'm not saying these houses you're looking at are junk...but what I am saying is you need to be crystal clear on the neighborhood, the condition of the houses and the type of tenant placed in the house.

All it takes is a couple of months of slow pay, then no pay and then you've got an eviction on your hands. In Alabama that takes 3 months.

Investors lose money on turns...and that's money you can't get back from another tenant. The goal is to buy a great house, get it in great condition and have a disciplined underwriting process. The way you make money in this business is to keep a tenant for 10 to 20 years.

I'm actually working on an ebook now about Birmingham's turnkey business and how investors really make money in this business.

I'll step off my soap box now...sorry for rambling on.  

205-336-2559
Evernest4.63651 Reviews
WebsiteView Page
2Reply
See this reply in the discussion

10 Replies

Jump to latestLatest
  • Spencer SuttonBusiness Member
    Investor · Birmingham, AL · Member since 2015 · 119 posts · 148 votes
    11y

    Joey,

    I've been buying/selling and managing rental property in Birmingham since 2003.  I have to tell you that those prices are too high. 

    There's a lot I could say about turnkey here in Birmingham but I'll save that for another time.  I sat down with out of state investors the other day looking to place 900k in Birmingham and after looking at the list of properties they were presented to buy from a 'turnkey' expert, I had to tell them the truth about that junk list.

    Instinctively they thought something was wrong when they visited and saw burned down houses on the same street and a lot of vacant properties.

    I'm not saying these houses you're looking at are junk...but what I am saying is you need to be crystal clear on the neighborhood, the condition of the houses and the type of tenant placed in the house.

    All it takes is a couple of months of slow pay, then no pay and then you've got an eviction on your hands. In Alabama that takes 3 months.

    Investors lose money on turns...and that's money you can't get back from another tenant. The goal is to buy a great house, get it in great condition and have a disciplined underwriting process. The way you make money in this business is to keep a tenant for 10 to 20 years.

    I'm actually working on an ebook now about Birmingham's turnkey business and how investors really make money in this business.

    I'll step off my soap box now...sorry for rambling on.  

    205-336-2559
    Evernest4.63651 Reviews
    WebsiteView Page
    2Reply
  • Bill Larsen
    Investor, Real Estate Agent · San Juan Capistrano, CA · Member since 2013 · 150 posts · 65 votes
    11y

    Ha, i've been looking into Birmingham to pick up rentals myself and have been analyzing 2 properties in almost the same 2 areas!  However, the prices I was seeing were a little lower.

    @Spencer Sutton everything you said is why I'm yet to purchase a rental. I'm a fix and flip investor in CA so I can't get myself to pay retail (or even a little higher) for a 'turnkey' property. But then I'm too far away to really analyze deals from wholesalers, or make educated offers off the MLS. I'm starting to think I need to pick a market and just take a couple long weekends out there.

    I'd be very interested in reading your ebook, when do you expect to finish it? 

    0Reply
  • Account Closed
    OP
    Registered Nurse (ICU) · San Jose, CA · Member since 2014 · 496 posts · 332 votes
    11y
    For me. Being inexperienced and out of state makes turnkeys so attractive. Even if you do pay a little more for them. The stress levels are lower and you collect the rent right away. Hands off easy way to invest in real estate. Trying to do it by myself during my growing years of real estate investing is to risky in my opinion and could potentially cost me money through a bad deal, bad rehab, or bad management. I'm not there to monitor this process.
    0Reply
  • Billy Maloney
    Rental Property Investor · Los Angeles, CA · Member since 2015 · 155 posts · 81 votes
    11y

    @Spencer Sutton I would also be interested in your ebook.

    1Reply
  • Spencer SuttonBusiness Member
    Investor · Birmingham, AL · Member since 2015 · 119 posts · 148 votes
    11y

    I just got the rough draft from Matthew (gkhouses.com owner) yesterday and I'll be working on finishing that one along with one I'm writing with a 35 year veteran about how to keep a tenant 20 years.  

    I'll post something on BP when we're done and make it available to anyone who's interested.

    205-336-2559
    Evernest4.63651 Reviews
    WebsiteView Page
    1Reply
  • James B.Pro Member
    Investor · Monterey Area, CA · Member since 2011 · 150 posts · 81 votes
    11y

    @Spencer Sutton

    How's that book coming along on B-ham, my friend? Btw, TGIF :)

    0Reply
  • Spencer SuttonBusiness Member
    Investor · Birmingham, AL · Member since 2015 · 119 posts · 148 votes
    11y

    Hey @James B.

    The book is coming along and is out at the designer now making it look great (I hope!).  It should be ready to share by late next week.

    205-336-2559
    Evernest4.63651 Reviews
    WebsiteView Page
    0Reply
  • Spencer SuttonBusiness Member
    Investor · Birmingham, AL · Member since 2015 · 119 posts · 148 votes
    11y

    Here's the ebook 

    https://gkhouses.clickfunnels.com/5-turnkey-manipu...

    @James B.

    205-336-2559
    Evernest4.63651 Reviews
    WebsiteView Page
    0Reply
  • James B.Pro Member
    Investor · Monterey Area, CA · Member since 2011 · 150 posts · 81 votes
    11y

    @Spencer Sutton

    Awesome! I'll check it out now, thanks. 

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free