Greenville SC vs Huntsville AL

[Raj Mukherjee]

I understand there is no perfect answer here. However, I am looking to see if fellow investors have strong perspectives one way or another -

If you had a fixed amount of capital that you could invest, would you invest in Huntsville or Greenville? Inventory in both places is low, and we all know rents are going up making it possible to have a decent cashflow in both places.

I always look at jobs, population movement and affordability. It seems both cities fare well in those regards and are projected to continue to do well.

Next, I look at schools - Huntsville is much better it seems.

Finally, I look at housing starts, price points, infrastructure and safety - both cities are comparable, although Huntsville seems a bit better.

What am I missing? What would you do?

[John Underwood]

I am from Decatur, AL and now live in the Greenville SC area.

You can't go wrong with either location. Find the property that makes you the most money in either location.

[Michael J.]

I prefer Greenville as I like to be able to get to my properties in less than 30 minutes.

[Michael S.]

@Raj Mukherjee - right now, the challenge is actually finding a deal.  

I do not know anything about the Greenville market.  

But finding deals in Huntsville/Madison right now is virtually impossible unless you have numerous and strong connections for off-market properties.  

If you were planning to primarily use the MLS in Huntsville/Madison, you're probably best to look elsewhere. In the years I've been doing REI here, I've never seen the market so lacking of decent buying opportunities.

[Raj Mukherjee]

I am experiencing the same. I found a couple of properties in decent school areas but it is pretty far from Huntsville and the P/R ratios are not that attractive. My hurdle rate has always been 15% IRR assuming a 2% annual appreciation rate (I understand that is low but I like to be pretty conservative buy and hold investor).

I am going to see if I get anything but if not, wait for the interest rates to go up to cool off market somewhat.

[Dena Puliatti]

Buying in Huntsville now is very competitive.  You have to be ready to move fast.  So have your proof of funds/pre-approval ready.  Cash flow is gonna be tough here.  You are buying more for the appreciation.

[Raj Mukherjee]

@Dena Puliatti do you have a sense of rents ($/sq ft) in neighborhoods with good schools (8+ rating)? And how long does it take to rent? Scoping North Huntsville area - lets see.

[Bernard B.]

@Michael S. , 

I agree. Inventory is really low, and it is very hard to find any deals that will cash flow in Huntsville, AL. As a matter of fact , prospective tenants have been contacting us about rentals that are not even vacant or advertised for rent. In the past, our tenants would live in a unit for about a year and a half then move out, not now. None of our tenants have moved over the past few years. From the properties that I have seen sold recently, investors paid way too much for them. 

[Dena Puliatti]

@Raj Mukherjee I do know rents for all of Madison County.  How long it takes to rent depends on a lot of factors.  Everything from season to schools to home condition to price. 

[Gorden Lopes]

@Raj Mukherjee

You are right in your analysis, Huntsville definitely has better schools and the employer profile is much better as well. 

With little bit of effort and networking you can easily find off market properties which are slightly better in numbers. An example would be buying a SFR house in a Class B area for 230-250K that is renting for 1600-1800 range, those are not home run numbers but with low property taxes these are still better deals than what you find in other places.

All the best in your search!

[Laura Davidson]

@Gordonlopes

@Gorden Lopes I couldn't agree more! This is how I have been making money. Not buying the cheapest house in town but buying in areas with the best schools. Rents follow. 

[Morgan Eriksson]

Greenville is Awesome. The challenge is, it is extremely hard to find deals most the wholesalers here are now working directly with hedge funds willing to overpay for anything. I'm sure Huntsville is similar. I would look at both and write offers in both markets till you find a deal that works. 

[Gash Nookala]

@Raj Mukherjee 
What did you end up doing? Huntsville looks good market