All Forum Posts by: Florencio Nayve

@Florencio Nayve - to add to what @Chris Mignone noted, North Alabama has a lot of appreciation potential in the near future.  As far as potential, Madison county would be first without a doubt, then Limestone county.  Morgan county (and the city of Decatur especially) have really lagged in appreciation compared to the other two counties mentioned, and I actually think Decatur could get passed by Athens proper in the next decade population wise.  So I'd view Morgan county as more a cash flow play than appreciation play.  I think Marshall county will appreciate far more than Morgan and Jackson counties in the next decade.  

I view Gulf Shores as higher risk/higher reward - appreciation potential is definitely higher, but risk is much higher to get wiped out as well;  basic costs (rehab, insurance, etc) will be much higher as well, but so will rental amounts.  

Back in 2012, I started investing in turnkey rentals in Birmingham, and I even ventured into Indianapolis, Atlanta, and Pennsylvania. At one point, I owned four properties in Birmingham, but I eventually sold them between 2016 and 2019. During that time, I began exploring syndications and private placements, focusing on buying apartments in Huntsville, Alabama. Bham was good to start to buying rentals for beginning investors.

Now, Huntsville may have been smaller in terms of population back then, but things have drastically changed. It has actually surpassed Birmingham in terms of population growth, which is quite impressive. Initially, around 2015, people predicted that Huntsville would reach that milestone around 2025 or 2030. The city's rapid development can be attributed to the abundance of white-collar jobs, and it's often said that they have the highest per capita number of engineers or individuals with higher-level degrees. It's like the Austin, Texas of Alabama, if you will, but on a smaller scale.

Regarding Montgomery, Alabama, I don't have much information about the city's real estate market. It is the capital, but I've heard that rental evaluations aren't as strong there compared to Huntsville or Birmingham. As for my own investments, I also purchased some properties near Mobile, Alabama. We even bought a couple of apartments in Gulfport, Mississippi, and ventured into mobile home parks in Gulf Shores, Alabama. However, I would advise staying away from anything located a hundred miles south of Birmingham due to the risks associated with the Gulf area, including parts of Louisiana, southern Mississippi, and southern Alabama. Trust me on this one, just take a look at the skyrocketing insurance rates in those regions.

Best location in Alabama for appreciation potential is Gulf Shores.  Beach front is rare and has appreciated well for 50 years and likely will be appreciating well 50 years from now.

Good luck

@Florencio Nayve yes. The vast majority of Madison, Morgan, and limestone counties should be prime appreciation plays over the next few years.

@Florencio Nayve Huntsville (Madison county) is your best bet in my opinion. Birmingham MSA has some spots where you can win but if you have to know that market well to win. I can’t speak for mobile, and I don’t touch Montgomery whatsoever haha

@Florencio Nayve

The Mobile County and Baldwin County areas, located next to each other, have historically had great appreciation rates. Baldwin County has two main areas that I would look into:

Daphne-Spanish Fort-Fairhope areas and the beach areas of Gulf Shores and Orange Beach

There are also multiple areas of Mobile that make for great appreciation plays:

Spring Hill, 36608

Midtown

West Mobile

Saraland is right outside of Mobile and is growing rapidly as well

@Florencio Nayve

The Mobile County and Baldwin County areas, located next to each other, have historically had great appreciation rates. Baldwin County has two main areas that I would look into:

Daphne-Spanish Fort-Fairhope areas and the beach areas of Gulf Shores and Orange Beach

There are also multiple areas of Mobile that make for great appreciation plays:

Spring Hill, 36608

Midtown

West Mobile

Saraland is right outside of Mobile and is growing rapidly as well

@Florencio Nayve Huntsville (Madison county) is your best bet in my opinion. Birmingham MSA has some spots where you can win but if you have to know that market well to win. I can’t speak for mobile, and I don’t touch Montgomery whatsoever haha

Montgomery is still having good appreciation.