Newbie in the Birmingham area

[Amy Scarborough]

Hey everyone, I just joined BP yesterday. I'm from the Birmingham area. I'm just getting started & really interested in real estate investing, specifically starting out with a duplex, triplex or 4 plex, possibly for a house hack. Right now I'm trying to learn everything I can & looking to connect with anyone in the area that has some experience. Thanks everyone for your help! 

[Jason Cory]

@Amy Scarborough I would recommend you crawl before you walk. It's easier to start with a house. You only have one thing to learn the ways and one set of problems. If you start with multi units you now get to deal with multiple maintenance issues at once, multiple accounting tasks by unit, multiple drama problems, i.e., tenants not getting along. As a landlord you're the problem solver and really a social worker. I've owned houses, duplexes, and multi family. The one I won't even consider after owning is a a duplex or anything under 4 units. You always have that one tenant that has to be the dominant personality. The people that live in close proximity wind up despising that person and avoid them at all cost. They usually move quick also to get away from the drama. If you have 2 that like drama prepare to get gray hair fast. Smaller multi units in Birmingham just don't work unless you are a slumlord. Drive by smaller multi units and see how many are actually well-kept versus how many show you they are ignored by the landlord. These property types may work in other cities but not Birmingham. 

Also, you should look at historical data for multi units. Anytime there is a downturn in the economy multi units take a beating. It's extremely volatile. Your only hedge against stability with a tenant is going the Section 8 route. You get rent paid regardless of economic conditions, including the Rona. It's a federal program so you could have a tenant that has a voucher issued from Birmingham but rent to them in Hoover. You don't have to buy in areas you aren't comfortable in just to get the rent/cash flow stability of Section 8.

Feel free to reach out if you need guidance navigating Birmingham.