Feeling Out the Fort Rucker, AL Market

[Sam Lenderman]

Hello All,

I have a family member moving out to Fort Rucker soon, and they don't have a desire to purchase a house there. My thought was if the market is good, I could purchase a SFH or townhouse to rent out to them and keep the home as a cash-flowing property after they move away.

It seems like there are some well priced townhomes just west of Ft. Rucker in Enterprise, AL, which is my family member's desired area. Does anyone have any insight on the market here, areas to avoid, or anything that can help me understand the market better?

Thanks in advance.

[Benjamin Fertich]

Hi Sam,

I purchased a town home in the Eagle Landing subdivision while I was there for training and have been completely satisfied with my investment. 

There are some pro's and con's to the area. 

You will have no shortage of military tenants and the property values have been appreciating nicely over the past few years. However, like many markets, you will have a hard time creating a significant cash flow when you purchase at market rates. Rent is competitive due to, what I would consider, a complete saturation of rental properties in the city. 

I rent my property as a short-term rental, focusing on TDY soldiers or contractors working on base, so far this has been highly successful. I would never have thought about doing except for the fact that regular rentals in the area generate such mediocre returns. 

The base will always be there. You will always have tenants. The population of Enterprise is increasing. Rent is competitive and property values don't leave much wiggle room for expenses.