Time to Take the Plunge! Area of Interest? Huntsville / North AL

[Elizabeth Marquez]

Hello BP Community! 

It is time for me to finally take the plunge and get started with my real estate investing. After a few decades "playing" in the tax / accounting world I took about a year and half sabbatical from the traditional "working world" . While I am currently living in VA I anticipate moving to Northern AL in the next few months (in my Gypsy wanderings I have lived in both the Birmingham and Huntsville areas).

1st - A "home base" for me to live in for about 6 months to a year at which time I would transition it into a rental property (I will be sharing said home base with my 26 year old son and 10 month old German Shephard puppy named Bubba) - so perhaps a single family with enough living space for all of us to have private living space (while we do all adore each other some alone time is required) or a duplex/multifamily?

2nd - Additional investment properties - other son has $$ to invest (as do I) but is currently working/playing in Singapore so would be joint investments - we at this time are interested in multifamily (or any other suggestions from the community). 

Appreciate any advice / suggestions ! 

[Michael S.]

@Melissa Nash has posted very good insight into the Alabama market on multiple threads recently.  To put my own spin on it:

Huntsville - the growth of North Alabama (Huntsville and Madison) has really been significant.  However, it is not just anticipated growth driving the hot market;  it is supply and demand right now.  There is virtually zero opportunities for investors right now in most A neighborhoods and in some B neighborhoods for even net zero cash flow.  Interestingly, I have recently seen some extrapolating of what is an "A" neighborhood here in Huntsville, as people are trying to justify higher prices in supposedly "A" neighbors.  Bottom line - very few opportunities here right now, but your appreciation potential here is much higher than anywhere else currently in Alabama IF the growth continues - if the growth does not continue, appreciation plays could be dicey at best.  1% rule does not exist for A neighborhoods here.

Birmingham - you must do your homework in this city and really know your location, or you can get in trouble quick in some areas with problem tenants and D neighborhoods.  I don't know the city well enough, so I have not invested here as such.

Montgomery - solely focus on cash flow with any property here (1% rule is likely very realistic here).  Would not assume any appreciation here - the population may decline over the next decade unlike the more northern parts of Alabama.