Anyone from SoCal investing in Huntsville?

Question

Wondering if anyone wants to meet up and talk shop!  I'm looking to buy my first investment property in Alabama soon.

James Gates · Answer

Hey Justin,

I live in Redlands and my partner and I have picked up 12 units in the last 14 months in Huntsville. -James

Phillip Arowosegbe · Answer

Hi All - My fiance (Account Closed) and I are based in So Cal (Inglewood/Long Beach) and have high interest in the Huntsville Market. We took a trip out there in November to get a feel for the area and neighborhoods and meet with Realtors and Property Managers.  We left just as excited as when we arrived as the opportunity is evident.  However, as mentioned inventory is low, especially if you're interested in Multifamily.  We've put in a few offers and are still looking for our first deal. Would love to connect with others here locally and discuss strategies!

Happy investing all!

-Phillip

Asa Ifill · Answer

@Michael S.

Michael, I disagree with some of the statements you said above..

1. There are several properties that are being sold everyday in the Huntsville/Madison area that are making positive cash flow, you might need to establish a better team around you to find you the right deals that cash flow OR make lower offers/find motivated sellers..

2. You are correct about some of the properties being in C and D neighborhoods, but that does not mean they will not cash flow or appreciate within the years to come. This might attract tenants you do not want in your property but it is up to you how you would like to screen your tenants and if you’d like to give them a shot.

3. Justin does not have to put offers in on properties that are “sight unseen” if he has established feet on the ground here in Huntsville. He could have an RE agent view the property and send him pics/videos if needed for him to make his decision.

The market in Huntsville is hot right now for sure and it is definitely a sellers market due to all of the inventory we have here. If some of those houses sit for long periods of time on the market, maybe sellers will be more motivated to sell their property at a right price for us investors.

I appreciate your “realism” here but sometimes you need to look at the cup as half full and not half empty.

Good luck with your future endeavors Michael, I wish you the best of luck!

Justin, if you’d still like to meet when visiting Huntsville don’t hesitate to shoot me a message!

Thanks,

Ruth Blue · Answer

We lived in SoCal for 12 years and are from Huntsville, AL. My mom @Rhonda Blue owns 4 LTR properties. 2 in South Huntsville and 2 in Madison AL. She uses Dietrich Rentals as her PM.

Justin B. · Answer

@Nick Duarte Thanks, I will PM, would be happy to get together soon.

@Phillip Arowosegbe Glad to hear it!  The more research I do about the area (i.e. population growth, job growth, economic growth), the more excited I am to invest there.  I understand there's a shortage, but I'm sure it still won't be as tough as California, plus I'm actually focused more on single family right now.  I am starting out with my fiancé too, congratulations!  I will PM you soon.

Michael S. · Answer

@Asa Ifill

You are certainly entitled to your opinions, and are certainly not required to agree with mine whatsoever;  that's what makes these message boards quite interesting to read.  You are quite enthusiastic about real estate by the tone of your post, which is great.

My response is to clarify an item that may have been misunderstood - I never said C/D properties would not cash flow;  I said that C/D neighborhood properties are still quite available, and that properties in any class neighborhood that negatively cash flow are readily available as well.  I absolutely agree that C/D neighborhoods can cash flow;  they actually can cash flow better than A/B here right now, but their appreciation potential is typically limited compared to A/B in Huntsville and Madison.  I also, of course, agree with your sentiment on the tenant quality issue for C/D neighborhood classes.

I am sorry if my post comes across as "glass half empty" - however, for an investor that is OOS and not familiar with Huntsville, the best I can do is provide them factual observations from my own experience.  It may not be seem positive, but factual statements are not always going to be positive in context.

Michael S. · Answer

Everything @Asa Ifill put in his post is exactly the reason you are going to have a hard time finding properties in Huntsville right now, unless you are ok with any of the following:

1.  C/D neighborhoods

2.  Negative cash flow

3.  Making offers site unseen within 24 hours of listing

4.  Looking for properties outside of the Huntsville and Madison proper

We have a hotter market right now than last spring (which was crazy) due to lack of quality inventory, as well as way more OOS investors than inventory.  Many sellers are actually not even considering OOS offers right now because they have so many offers to choose from.  It's something to consider when you choose where to focus your efforts.

Justin B. · Answer

Hi @Asa Ifill, thanks for reaching out.  I'm excited by the opportunity for growth out there.  I am planning a trip soon so I'll be in touch.  Ideally, I'd like to get a few people together and make a group trip!

Asa Ifill · Answer

Justin, are you in Huntsville this weekend? I'd love to talk some real estate with you.

I've been living in Huntsville, AL since 2004 and the growth here is exceptional, new companies coming to the city every year it feels like!

We have 4,000 people joining us on the Redstone Arsenal within the next few years to come, we have a Facebook data center that will be up and running later this year, along with the new Toyota/Mazda manufacturing plant we are building!

A lot of potential here in Huntsville! Shoot me a message if you'd like to meet up!

Thanks,

Anyone from SoCal investing in Huntsville?

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