All Forum Posts by: Account Closed

I would say Birmingham and Huntsville are both great areas. I'm not as familiar with Mobile or Montgomery. Feel free to reach out if you want to talk more specifically about the Birmingham sub markets. 

Hello

I'm trying to purchase my first rehabbed rental property through Rent to retirement/RTR.

The inspection report came back and there are many issues. 

One is required safety issue, A GFCI outlet would not trip when tested. 

Other over a dozen recommended fixes:

Electrical: 

1.There was exterior wiring visible that was not in conduit

2.A GFCI outlet would not trip when tested

3.The weatherproof covering is missing on the exterior receptacle

4.An outlet box is loose from wall

5.An outlet did not register as being energized with an outlet tester or multimeter.

6.A light fixture has physical damage.

7.A light fixture was inoperative.

8.There was no power detected

Plumbing: There was no discharge tube connected to the tpr valve

Attic, Insulation & Ventilation: They were stained areas in the attic

Doors, Windows & Interior:

1.SEVERAL WOOD WINDOWS APPEAR TO BE PAINTED SHUT

Exterior:

1.An exterior door does not close or latch properly.

2.An exterior door is missing sufficient weatherstripping. This can result in energy loss and moisture intrusion.

3.There was some settling to exterior concrete. It is possible that this could become a tripping hazard.

Roof:

1.No chimney cap was observed

2.The chimney crown has cracks/deterioration. Water can freeze in between cracks in cement and lead to additional deterioration.

Other things:

The attic is full of trash, left over furnitures, the garage floor is full of left over wood chips.

Is it normal to see so many issues on the inspection report of a place just finished renovation?

How should I handle these issues with the turnkey provider? Just reach out to them and let them know? And how can I confirm these issues are addressed after? Do I need to get another inspection report done? And how do I decide which issues need to be addressed, or should they all be addressed before the property is closely? Should I negotiate with the seller to clean the place, and throw out all the trash, I have never seen a place so dirty during a showing before? 

Love to see this man! Let me know if you need any help getting your properties listed! Happy to do random walkthroughs for you as well to keep tabs for you, just hit me up!

I have properties in Bham, montgomery and a few others. Are you looking to buy something already done for you? Or are you doing the work yourself? I have loads of contacts for you and the good- bad and ugly on who is good and who is not! Message me if you want the low down! 

Hard to find better appreciation rates than in historically hot tourism destinations. For that reason, id say Gulf Shores. Im also biased though, but while most other hot markets have appreciated 30-40% over the past couple years, several Gulf Shores properties have appreciated even 100% or more, and there is still a ton of opportunity for it to keep growing rapidly.

@Account Closed - to add to what @Chris Mignone noted, North Alabama has a lot of appreciation potential in the near future.  As far as potential, Madison county would be first without a doubt, then Limestone county.  Morgan county (and the city of Decatur especially) have really lagged in appreciation compared to the other two counties mentioned, and I actually think Decatur could get passed by Athens proper in the next decade population wise.  So I'd view Morgan county as more a cash flow play than appreciation play.  I think Marshall county will appreciate far more than Morgan and Jackson counties in the next decade.  

I view Gulf Shores as higher risk/higher reward - appreciation potential is definitely higher, but risk is much higher to get wiped out as well;  basic costs (rehab, insurance, etc) will be much higher as well, but so will rental amounts.  

Back in 2012, I started investing in turnkey rentals in Birmingham, and I even ventured into Indianapolis, Atlanta, and Pennsylvania. At one point, I owned four properties in Birmingham, but I eventually sold them between 2016 and 2019. During that time, I began exploring syndications and private placements, focusing on buying apartments in Huntsville, Alabama. Bham was good to start to buying rentals for beginning investors.

Now, Huntsville may have been smaller in terms of population back then, but things have drastically changed. It has actually surpassed Birmingham in terms of population growth, which is quite impressive. Initially, around 2015, people predicted that Huntsville would reach that milestone around 2025 or 2030. The city's rapid development can be attributed to the abundance of white-collar jobs, and it's often said that they have the highest per capita number of engineers or individuals with higher-level degrees. It's like the Austin, Texas of Alabama, if you will, but on a smaller scale.

Regarding Montgomery, Alabama, I don't have much information about the city's real estate market. It is the capital, but I've heard that rental evaluations aren't as strong there compared to Huntsville or Birmingham. As for my own investments, I also purchased some properties near Mobile, Alabama. We even bought a couple of apartments in Gulfport, Mississippi, and ventured into mobile home parks in Gulf Shores, Alabama. However, I would advise staying away from anything located a hundred miles south of Birmingham due to the risks associated with the Gulf area, including parts of Louisiana, southern Mississippi, and southern Alabama. Trust me on this one, just take a look at the skyrocketing insurance rates in those regions.

Best location in Alabama for appreciation potential is Gulf Shores.  Beach front is rare and has appreciated well for 50 years and likely will be appreciating well 50 years from now.

Good luck