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Updated 6 months ago, 06/28/2024
Starting the journey in Birmingham, AL!
Hello!
I am interested in purchasing my first out of state (currently live in CA) investment property. My budget is a purchase price of $150,000. My main goal is some cash flow, and second to that is some potential for appreciation. I noticed Birmingham, AL had homes in that price range. Birmingham passed most of the "rule of thumb" criteria recommended (job growth, household income growth) but the downside is population is -18.60% since 2000, and crime is a bit on the higher side (https://www.deptofnumbers.com/employment/metros/). I'm still willing to move forward. A few questions:
- Are these 2 items deal breakers? Thoughts on the area in general?
- I have tried to contact a few Agents through the homes I found on Zillow, and have zero zero response. It's been about a week and a few follow ups. Is this because my budget is so low?
Thank you thank you! I have learned a lot so far from this forum so I am so grateful to be able to learn from you all.
Hey Pauline, welcome to BP! I don't know much about the Birmingham market but it sounds similar to Detroit (where I invest).
I'm also from CA and have been investing there since 2019 (12-doors now). There's a ton happening in the city and folks are finally starting to catch on.
Detroit was also the fastest appreciating market in the country the other month, so it's clear folks are catching on!
If that's a market you end up looking at I'm happy to share some resources.
Hi Pauline...Great to meet you here on BP. I am extremely familiar with the Birmingham, AL market. I have been investing in this market for the last 10 years. I have a treasure trove of information and connections for you. Feel free to DM me and I will point you in the right direction.
Cheers to Your Success!
Quote from @Travis Biziorek:
Hey Pauline, welcome to BP! I don't know much about the Birmingham market but it sounds similar to Detroit (where I invest).
I'm also from CA and have been investing there since 2019 (12-doors now). There's a ton happening in the city and folks are finally starting to catch on.
Detroit was also the fastest appreciating market in the country the other month, so it's clear folks are catching on!
If that's a market you end up looking at I'm happy to share some resources.
Thank you so much, that would be amazing! I’ll send you a message.
Quote from @Maureen McCann:
Hi Pauline...Great to meet you here on BP. I am extremely familiar with the Birmingham, AL market. I have been investing in this market for the last 10 years. I have a treasure trove of information and connections for you. Feel free to DM me and I will point you in the right direction.
Cheers to Your Success!
Would you be willing to share your information with me too? I'm a rookie investor looking to invest in Birmingham from out of state also. Same price range, but mostly interested in appreciation.
Hey @Pauline Sabado
Welcome to BP, I'm thrilled to connect with fellow investors who are passionate about unlocking opportunities in the real estate market, you are definitely in the right place. We are more than experts in North Alabama especially the Shoals Area and Huntsville, we can unlock the full potential of North Alabama's commercial real estate market.
If you're interested in learning more or exploring potential investment opportunities, feel free to reach out. Let's connect and share ideas.
@Pauline Sabado birmingham is one of those markets I would recommend visiting before investing. There are some great areas and some terrible areas, and sometimes they are right next to each other. Your comps have to be really dialed in. Also there are lots of areas that haven’t seen appreciation in any true sense. I have properties in Fairfield, West end, East Lake, and others, and they can cash flow but the management is difficult (as in getting cash collected from tenants). I say this not to scare, just to inform and let you know issues I’ve had and seen friends have. Also contractors have to be checked in on so make sure your agent or manager is trustworthy and follows up on all work.
Hey Pauline,
Caleb's response to visit the city is one of the smartest first moves you will make. I would suggest you visit any city you are considering buying investment property. Once you find and contract a house, make sure you have it inspected. An inspection is inexpensive insurance. And no, I do not think your budget is to low.
Quote from @Maureen McCann:
Hi Pauline...Great to meet you here on BP. I am extremely familiar with the Birmingham, AL market. I have been investing in this market for the last 10 years. I have a treasure trove of information and connections for you. Feel free to DM me and I will point you in the right direction.
Cheers to Your Success!
Hi - would you be willing to share your info and connections with me, please? I'm also considering Birmingham area.
Quote from @Caleb Bryant:
@Pauline Sabado birmingham is one of those markets I would recommend visiting before investing. There are some great areas and some terrible areas, and sometimes they are right next to each other. Your comps have to be really dialed in. Also there are lots of areas that haven’t seen appreciation in any true sense. I have properties in Fairfield, West end, East Lake, and others, and they can cash flow but the management is difficult (as in getting cash collected from tenants). I say this not to scare, just to inform and let you know issues I’ve had and seen friends have. Also contractors have to be checked in on so make sure your agent or manager is trustworthy and follows up on all work.
Hi - is there specific areas to stay away from?
Quote from @Bryan Miles:
Hey Pauline,
Caleb's response to visit the city is one of the smartest first moves you will make. I would suggest you visit any city you are considering buying investment property. Once you find and contract a house, make sure you have it inspected. An inspection is inexpensive insurance. And no, I do not think your budget is to low.
Thank you! :)
@Pauline Sabado B-ham has seen population decline, but people I know there advise looking outside the city proper. Jefferson County's population has remained more-or-less stable since 2000: https://worldpopulationreview.com/us-counties/al/jefferson-c...
Hey Pauline, the birmingham market is in a great place currently. I would love to get on the phone with you to talk about the highs and lows and where to start!