All Forum Posts by: Michael S.

@Sushil Gupta - new builds here are typically not going to cash flow unless you are willing to put a minimum of 30% or more down;  additionally, you are not likely to see any appreciation for at least 3 to 5 years on the current new build prices, and likely will lose money on some of the new builds if you need to exit the investment in under 3 years.  Proceed with caution and extreme due diligence with your numbers.  

@Kyle Gagnon - combining data for the state of Alabama is not of value.  The real estate markets of Huntsville, Birmingham, Montgomery, Mobile and the Gulf Shores are all very different entities.  

The opportunity for value add remains limited in Huntsville due to prices.  We are not seeing a ton of foreclosures here as you are alluding to.  The rental market remains stagnant, not "strong".  

Would greatly enjoy hearing about your personal holdings in Alabama, Kyle.  Where do you have properties in the state?  If you don't have anything in Alabama, then what was the point of this post?  Your comment "let's talk" suggests you have something to sell - I'm going to guess this is actually a post trying to get business for funding deals.   

@Michael Ewers - nothing has changed recently in Huntsville.  Although we've actually bought more in 2025 than sold thus far, which is a change from 2024.  No idea on Birmingham.  I've also bought 2 OOS over the past year given the limited opportunities locally.  

@Camille Hoheb - because new builds are primarily outside of city limits.  Those in city limits are priced aggressively, so appreciation will be a bit of a gamble - may happen, may not.  The new builds in New Market/Meridianville/Hazel Green are at high risk for being underwater over the next 3 years.  If you are planning to buy and hold a new build for at least 5 to 7 years, you should be ok for some chance at appreciation.  

I don't know anything about the local markets outside of Huntsville/Madison and the immediate surrounding areas.  Unlike others on BP, I don't give advice for markets I have no knowledge of.  

@Camille Hoheb - SFH new builds in the Huntsville area are not a viable play right now, unless you have a desire to put at least 30% down. Anything less than 30% down will likely be notably cash flow negative, and the chance for appreciation with new builds right now is likely limited.

@Arman Ahmed - I would disagree with a "growing market" for investors with Huntsville right now.  Stagnant market would be a better description.  Do you invest in this area?  If you are having a different experience, I'd be curious to hear about it.  

@Samuel Coronado - glad to see someone else on the same page as me about investing in Decatur.  We won't even look at properties in Decatur.  

@Lindsay Davis - always enjoy a good dialogue about local real estate.

I see zero movement to the north - Meridianville and Hazel Green are already priced at the top of the market, and I think they are due for a correction.  Simply put, the jobs coming to the area are not to the north side of the city. 

I agree with the growth to the west - but not toward Decatur.  I think Athens isn't done growing, and there is a lot of vacant land still in Limestone county.  

South Huntsville is where the money is going right now - the area near Grissom High in particular is seeing crazy amounts of building and growth.  I think it will eventually extend all the way to Ditto landing, as there is a lot of land available there.  

Decatur growth has been trivial compared to the rest of the area - I still think Decatur is a cash flow only play, as I don't see people moving to the area for jobs in Huntsville or Madison metro living in Decatur.  

@Emmanuel Sanchez - we don't invest in either location for the following reasons:

Decatur - slowest growing area in North Alabama over the past 10 years in my humble opinion.  Zero appreciation potential in the immediate present - if you invest there, must be a home run cash flow play.  Cash flow should be obtainable in Decatur, but you'll need to be low B / high C area.  

Meridianville/Hazel Green - overpriced.  No industry growth in that direction.  Zero appreciation potential at current prices obviously.  New builds won't cash flow without at least 30 to 40 percent down.

Just my opinion on the current situation. 

Be careful who's opinion you take in this regard - I have nothing to sell you.  

@Remington Lyman - great topic. For those of us that do REI as more of a side hustle (essentially anyone with a non-REI W2 like me), the forums have become a waste of time as well.

Most of the posts are either spam, people with no money asking for help buying an apartment building, people whose feelings get hurt if you provide constructive criticism of their plan, or people talking out their rear ends.  

I typically do a routine daily search under "Huntsville" to see if there is any interesting discussion from local investors.  Here's the typical topics I see under Huntsville:

1.  I have no money - where should I look for a house in Huntsville?

2.  The market is great in Huntsville - contact me.

3.  I am a turn key operator - please contact me about opportunities in Huntsville even though I have zero properties currently listed on my website for North Alabama

4.  I live in (insert state here) - you can cash flow in Huntsville no problem!  No, I have never set foot in Alabama, and don't know what fried okra is.

I always ask the poster to tell me about some of their recent property acquisitions they have done here in Huntsville - and get crickets.  

Maybe I should start asking if they like fried okra?  AI may assume it tastes like chicken...

@Michael Ewers - totally agree.  It amazes me how many posters feel some sort of need to comment on the Huntsville market when they know nothing about it.  

There is a thread on here where two individuals make statements about how great the market in Huntsville was for investing right now.  

I tagged both of them in a comment, congratulated them on their success here, and asked them to share about their properties and performance here.  

Crickets.  

It seems like everyone who has never invested or even stepped foot in North Alabama has an "informed" opinion on the market here.  

@Michael Ewers - market here is very strange right now for both sales and rentals.

What we've seen with sales is either a property sells within one week with multiple offers, or it sits on the market for 3 to 6 months.

Rentals have been similar - they either lease within 2 weeks, or sit for 4 to 6 weeks and sometimes are requiring a price reduction to get them moved.  Our turnover / vacancy rates have been higher in the past 6 months as well.  

Overall, supply is currently higher than demand in my opinion.