In this short video, I want to handle a question that I am asked by almost everyone who gets involved in the real estate investing business, “Where do I need to buy investment property in Birmingham, Alabama?”
At gkhouses, we think it is important to divide investment property in Birmingham into three different groups, and you will need to choose a group that reflects your particular investment goals.
The first group is low-to-moderate income investing. In Birmingham, that means buying in places like Center Point, Roebuck, Huffman, West End, Ensley and East Lake.
These areas are marked by a lot of volatility, which means there is a potential to make great rental returns. However, if you don’t know what you’re doing, you also have great potential to lose a lot of money. I’ve seen it happen both ways with investors who are investing in low-to-moderate income rental property.
When we talk about a moderate-to-high income investing plan, we are talking about buying in areas such as Vestavia Hills, Hoover, Alabaster and Homewood. These areas have less volatility…for obvious reasons.
This means that there is less of a chance that you’ll accomplish a high return, but there is also less of a chance of getting a really low return. People who are conservative investors usually buy in these areas.
Finally, there is the fix-and-flip type of investment. This is designed for you to go to pick an area that you feel comfortable in and buy a house. Once you own that home, you’ll fix it and sell it.
The best advice I can give you if you want to invest in this type of property is to find a place where you feel the most comfortable and have the most knowledge.
Fix-and-flip is about having an in-depth understanding of a neighborhood or even a street within that neighborhood. You need to know more about it than anyone else.
This generally means that the best place to buy a fix and flip property depends on your own history and knowledge. Once you find the right deal in the right place, jump on it quickly. This is the best way to approach buying an investment property.
Before you decide where you want to buy, you need to decide what your real estate goals are. If you have any questions about real estate investing, please contact us at www.evernest.co.
Also, if you’d like to learn more about all aspects of rental property, visit our Owner FAQ Page where we have more videos and ‘how to’ resources for you.