Interested In Rental Buildings In Alabama
But I live in florida, does anyone here have any feedback on the rental investment situation in Alabama, would this be a good or bad move, the areas i like are around Birmingham and huntsville.
thanks for any insight
g
I guess nobody here has income property in alabama
oh well
How large of complexes are you looking for in Alabama? I have two larger complexes 130 unit and 139 unit in Mobile, Alabama. Would make good rehab project.
Huntsville is a very strong commercial market. A growing high tech defense contracting town. I actually have a very small commerical building for sale with a long term 7 yr State Agency Tenant if interested.
I lived in AL for several years. Huntsville is a nice town. Like all big cities, Birmingham would be good if you get in the right area.
I was looking at 25 - 50 unit buildings, up to a mil, i did find some but noticed and heard few rumors, one there are a lot of goverment subsidised housing and low income housing projects, to get into those even when they do look good may be potential trouble because you cannot raise rent with out the feds authorization, red tape deal.
then there is low economy numbers prety much everywhere in alabama, whereas florida has 17% job growth in say a little town of gainesville birmingham areas shows 1.14% future growth, some other areas show 0% growth altogether, now to plunk down a mil for 44 units may not sound like much to some, but in crappy economy with realestate growth cooling over all in the next years to come that is scary,
another thing i found that these 50 unit buildings are sold at a cap rate of 7.5 - 9.5 average, that is way too low for me,
lastly i heard a rumor about a old man who owns a lot of huntsville rental apartment buildings and realestate in general who ran into huge mismanagemnet troubles, i seen few of his buildings for sale, 44 unit building for 925k with financing available with 15% down and such, but the shapes are terrible and not being a novice the tenants must be a mess too.
anyhow, way to risky of a market if you live in fort lauderdale, but where else can you invest where the normal quads and eightplexes are not overpriced by 45 - 60 percent, i just sold a triplex here five minutes from beach at a cap rate 6. to the new buyer, that sick.
thanks for all your inputs
george