Looking to Purchase in Huntsville, AL. Any advice or expertise?

Question

I recently had a friend transferred to Huntsville, AL. and they love it! Told me there is good potential for real estate investing. Does anyone know anything positive or negative about this area?

Dave DeMarinis · Answer

Top Positives:

1. a lot of new job creation and growth

2. very educated population

3. Great metrics available for rent to sales, etc.

4. Huge variation in submarkets (from $60K average SFH to $400K average - so nearly every investment play is available

Top Challenges

1. Many people know the above 4 so it is extremely competitive

2. Very challenging to get any response from vendors/contractors/etc.

3. The variation above makes it very easy to buy thinking you are getting one thing when you might be getting another because there can be 1 mile difference and 10X average home price

It is a rare combination of a growing, healthy economy with MANY affordable housing options. This creates great opportunity as well as traps/siren songs. With your friend on the ground there, that can be a big help in navigating. I love investing there and love the opportunities.

Rhonda Blue · Answer

HI Mike,

I own 2 properties S Hunstville and 2 properties in Madison. I love Huntsville, both my kids were born there.  You can't go wrong. I used @Carolyn Dietrich as my agent because she is extremely knowledgeable and has her pulse on the area. Also she has the management company I use for my properties. Definitely reach out to her and see what she says. I think the area is still very much expanding.

I just moved to TN from Lake Forest, IT IS AWESOME with the Autumn leaves changing seasons!!!

Wendy Carbone · Answer

What @Dave DeMarinis said is spot on!  When he said:

"3. The variation above makes it very easy to buy thinking you are getting one thing when you might be getting another because there can be 1 mile difference and 10X average home price"

I could not agree more.  I am surprised at how many OOS investors are trying to purchase and then rent properties based on bad information.  Do your due diligence with regard to researching the schools and crime info for the house you are interested in .  If your intent is to rent the property out, contact a local property manager who can run a rental CMA BEFORE you buy!  (The majority of Realtors around here who sell real estate do not deal with property management)  Just my 2 cents ;)

Krista Billiter · Answer

I am a Huntsville native. I grew up here & after living many places throughout the country I recently moved back. The last place that I lived prior to settling back in Huntsville was in Nashville where I moonlighted as a wholesaler in their cutthroat real estate market. At the time (2014-2016) middle Tennessee's real estate market was number one in the nation (or so I’ve been told).

**mini footnote:  A wholesaller is similar to a Real Estate agent, but without the fees & deals worked are always off market, exclusive deals.

It was extremely competitive and very exciting and I learned a whole lot.
One of the challenges with the market in Madison County is that there are many many deep pockets not only in the area but also those that have trickled down from Middle Tennessee not to mention investors from throughout the world
that are looking invest in real estate just like you.

A lot of my Nashville Buyers have been asking about purchasing deals in Madison county for years.
Real estate agents that I have worked with in the area say that there is zero inventory and if something comes available, the buyer has to be 100% ready otherwise someone else will get the deal.

That being said, I personally think that there is a lot of potential in untapped areas of Madison County.
One of the biggest differences between Nashvilles market in Huntsville‘s is that there hasn’t been anyone that has been brave enough to build/Rehab/re-vamp areas that are undesirable i.e. north side.

Britney Turner with Ariel development out of Nashville made millions from re-habbing unsavory areas and turning them into hipster/family friendly neighborhoods.
I could go on for days about these topics! Your best bet is to get to know wholesalers and other investors especially the seasoned ones since they will come across deals before they hit the market.

I am not sure if all that rambling helped at all! At any rate, I would like to be the first to welcome you to Huntsville!

Melissa Nash · Answer

@Barb F. I am happy to share my contact with you for contractor, he might even have a wholesale properties.  DM and I will send you the intro!

Michael S. · Answer

@Dave DeMarinis synopsis of Huntsville real estate is very accurate.  Nice post.

Rhonda Blue · Answer

@Barb F.

I PMd you Barb. My team in Huntsville is Dietrich Associates. Carolyn Dietrich and her husband are agents but also have managed my rentals seamlessly for almost 5 years now.

Barb F. · Answer

Oh, I'm so happy to have found this thread! I'm new to REI after listening to Afford Anything podcasts for about 4 months now... which led me to BP. I'm in Virginia and know some acquaintances who live in Huntsville, but unfortunately nobody who seems able to help connect me with a great team down there. I'm planning to come visit the area from April 25-28 and am hoping to meet folks to start putting together the team as well as drilling down into which neighborhoods I'd like to invest in. I'm looking around the $40-50k range (I know it's small, but it's what's going to work for me at the start). @Wendy Carbone @Krista Billiter @Rhonda Blue @Dave DeMarinis If any of you are willing to talk more with someone new (but highly motivated to learn), I would truly love to get in touch. Thank you so much!

David Schwan · Answer

https://www.biggerpockets.com/forums/597/topics/52...

This is a good post lots of Huntsville information

Mike Doyle · Answer

Thanks All! Great advice that I really appreciate!

Looking to Purchase in Huntsville, AL. Any advice or expertise?

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