Rules of thumb for Center Point, Birmingham, Alabama

Investor · Kusatsu, Shiga · Member since 2015 · 147 posts · 87 votes

Hi guys,

I'm in the process of looking for a rental in the Center Point area of Birmingham. I am working with an agent, but of course, I'm weeding through a lot of listings.Are there any rules of thumb that more experienced investors in the area use when selecting properties?

For example, is there a school I should be close to? Is there a part of the area or street that has higher crime and should be avoided? Is there a type of house that doesn't rent well?

Any advice would be appreciated.

Thanks,

Daniel

0 Reply

34 views

Most Popular Reply

Spencer SuttonBusiness Member

Investor · Birmingham, AL · Member since 2015 · 119 posts · 148 votes

Hey Daniel,

Yes, @Wilson Lee is correct. There are many D class properties in Centerpoint and it can vary from street to street. You will also need to consider your prospective tenant and their willingness to pay premium rent for a nicer house. Nicer C class can command close to $1,000 in rent, but your pool of solid prospective tenants shrinks as well.

It's best if you actually walk the house and see the street for yourself. The last thing you want to do is to purchase a nice turnkey on a street that is deteriorating.

Best of luck to you!

Spencer

205-336-2559

Evernest4.63603 Reviews

Website View Page

5 Reply

See this reply in the discussion

13 Replies

Jump to latestLatest

Sort by

Wilson Lee
Birmingham, AL · Member since 2014 · 178 posts · 75 votes
8y
A lot of that depends on what it is you’re trying to accomplish. Centerpointe is a mix of class D and class C properties. Most the people who buy their are buying for cash flow.
There are plenty of value add opportunities in that area. There is many houses that need updates and have significant deferred maintenance.
However, if you lack the funds to perform a rehab you may want to look elsewhere as turnkey properties are not as common.
Personally, we blast offers on anything price below $80,000 for a Single Faimly. I typically put offers in at 40% of market value. We use a five day walk through contingency. Typically no one excepts. At best the seler’s Agent will give a verbal counter offer. We ask them to put their counter in writing. That locks them in for three days and provides time to look at the property.
If they do put a counter offer in writing it shows some level of motivation. After I run the numbers I sent him an offer that works for me.
For the initial offer, you could use a letter of intent style offer letter, rather than a formal purchase agreement. This has the downside of not being taken seriously.
Or you could ask your agent for a standard purchase agreement and fill them out yourself or you can ask your agent for standard purchase agreement and fill them out yourself.
It takes a bit more time but looks like a serious offer especially if you include $1000 earnest money check to be deposited in escrow if they except
4 Reply
Daniel Mills
OP
Investor · Kusatsu, Shiga · Member since 2015 · 147 posts · 87 votes
8y
Hi @Wilson Lee. Thanks for the response. That sounds like a great strategy. In my case, I am looking for more of a turnkey property there. I will be using conventional financing, and while I do have the funds for a rehab, right now, I'm not looking to do much more than cosmetic updates.
You mentioned that it's a C and D area. I actually wasn't aware that there are D class properties there. I would be targeting more of the higher class of properties there. Can you give me a general idea of where those types of properties are located in the area?
0 Reply
Wilson Lee
Birmingham, AL · Member since 2014 · 178 posts · 75 votes
8y
It can vary street to street to street. Areas closer to Pinson or Trussville are nicer. Areas closer to Tarrant are more class D.
1 Reply
Spencer SuttonBusiness Member
Investor · Birmingham, AL · Member since 2015 · 119 posts · 148 votes
8y
Hey Daniel,
Yes, @Wilson Lee is correct. There are many D class properties in Centerpoint and it can vary from street to street. You will also need to consider your prospective tenant and their willingness to pay premium rent for a nicer house. Nicer C class can command close to $1,000 in rent, but your pool of solid prospective tenants shrinks as well.
It's best if you actually walk the house and see the street for yourself. The last thing you want to do is to purchase a nice turnkey on a street that is deteriorating.
Best of luck to you!
Spencer
205-336-2559
Evernest4.63603 Reviews
Website View Page
5 Reply
Lane Kawaoka
Rental Property Investor · Honolulu, HAWAII (HI) · Member since 2011 · 4k+ posts · 2k+ votes
8y
Daniel Mills I have a few properties in center point and it is a good place for rentals. That said it’s really block to block. If you are doing this remotely. Make sure you connect with at least three to five other investors investing in the area.
2 Reply
Daniel Mills
OP
Investor · Kusatsu, Shiga · Member since 2015 · 147 posts · 87 votes
8y
Hi guys,
Thanks. This is great information. Let me ask you this. Say I decide I want to make a really "safe" investment in Birmingham where one street doesn't make or break the deal. What area would you recommend? Is that more of the south in Pelham, Hoover, and Helena? If so, is there much rental demand down there or are people mostly buyers?
Thanks,
Daniel
0 Reply
Bruce Glenn
Investor · Birmingham, AL · Member since 2016 · 15 posts · 17 votes
8y
Hi Daniel, Like the others have said, CenterPoint can vary greatly from street to street and neighborhood to neighborhood. I had a number of rental there for years and liked them, but I know the area pretty well. I also have several friends that have rentals in the Pelham, Helena, Alabaster area and they really like that area. Of course the home prices are substantially higher but it is a totally different market. A lot fewer rental properties in relation to owner occupied so that can be a good thing in the long run.
2 Reply
Pope Lake
Investor · New York City, NY · Member since 2019 · 82 posts · 43 votes
6y
@Lane Kawaoka Have you invested any more in center point since you posted this? Recently I’ve heard about a new building code law that requires you to bring the whole property up to code when making substantial renovations. Curious to know if you’ve encountered this at all. If not, it’s good to know for the area
0 Reply
Lane Kawaoka
Rental Property Investor · Honolulu, HAWAII (HI) · Member since 2011 · 4k+ posts · 2k+ votes
6y
This is one reason why I'm selling all my rentals and doing syndications. I had a vacant property for almost a year because I was waiting on permits.
0 Reply
Jessica Rhodes
Member since 2019 · 10 posts · 1 vote
6y
I am in the process of buying a property in Centerpoint off Roofstock. The address is 1124 Oak Creek Trl NE, Birmingham, AL 35215
Anyone happen to know this area?
I am getting cold feet now learning about the new inspection rules... I am thinking of backing out.
0 Reply
Linnea Minnema
Rental Property Investor · Birmingham, AL · Member since 2015 · 40 posts · 31 votes
6y
@Jessica Rhodes Roofstock should guarantee their properties - I think there is something on their website about this. If it's a turnkey property, you should either be OK or able to back out.
0 Reply
Alvaro Leis
Member since 2019 · 22 posts · 7 votes
5y
If it’s a turn key or only in need of cosmetic repairs, then why do yo need to pull a permit?
0 Reply
Lane Kawaoka
Rental Property Investor · Honolulu, HAWAII (HI) · Member since 2011 · 4k+ posts · 2k+ votes
5y
The contractor should take care of it or who ever is selling the property to you. But at some point you might to do some repairs and it will be a complete nightmare as a OOS investor.
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.