Where To Invest In Birmingham Alabama – A General Overview

What’s up, everybody? Mathew Whitaker here. I am going to knock out a quick video that’s just a general overview of the Birmingham investing market.

I’m literally going to jump over onto a map and just kind of give you a general overview of areas, and I think this will be super helpful for all of you, especially new investors out there that are considering investing in Birmingham.

So pulled up the map of Birmingham here, I’m going to zoom in.

Know The Geography

One of the biggest things about Birmingham that you need to know is just the geography. As you can see, this is actually the city of Birmingham. Obviously, these are the suburbs of Birmingham in and around here.

This is what everyone calls Red Mountain. Now, if you’re from out west, and I’m recording this from out west right now, you will call this a hill but this Red Mountain kind of divides the original suburbs from Birmingham.

Class A Properties

So, Homewood, Vestavia Hills, Mountain Brook are all class A properties. And, you know, you’re going to have a hard time finding properties in there to rent and make them cash flow. But what you will do is find a ton of fix and flips in there.

Class A and B Properties

Heading further south down I-65 you get into Hoover. Hoover is everything from A properties down to B plus. Excellent area, you can find some areas of Hoover where you can rent the house and make it make sense, but a great area for investors.

Down here in the very far south as you go down 65, you have Helena, Pelham, Alabaster. These areas are kind of solid B area neighborhoods where you can find both fix and flip and great rental houses.

Going down Highway 280 right here, if people in Birmingham complain about traffic, this is ‘exhibit A’ of what they complain about.

Down Highway 280 you will find Mountain Brook, which I talked about earlier. You’ll get into kind of the Inverness-Meadowbrook area and that bleeds into Chelsea.

This area was built very recently, so it’s harder to find a good deal, like a fix and flip deal, but they are out there. So there’s probably B to A properties down to 280. But you’re gonna have a hard time finding, they’re not, you know, in droves.

As you move up, you get into kind of areas of Leeds and Moody. These are B area neighborhoods, a lot of fix and flip, a lot of rentals. Trussville’s a great area, very highly populated area. This area you can find everything from B to A class, fix and flip stuff, rental stuff.

Class C to B

One of the hottest rental markets in our city is in this corridor right here. We call it the Center Point Parkway area, 75 as it comes off, runs Center Point, Pinson, Grayson Valley, Clay. This is where you’re going to find C plus to B properties.

And probably, I would venture to say especially 10 years ago was your biggest bang for your buck. Now it’s not a super secret anymore. So, you know, but you could still find great deals. A lot of those houses were built in the ’50s and ’60s, it’s still a great area to invest.

Fultondale and Tarrant are your C to maybe B minus areas. These are obviously big rental markets. Gardendale is your solid B. Gardendale and Trussville are very similar. The demographics are very similar, they both have their own city school system.

Great area to invest in Gardendale, Mount Olive, Graysville, Adamsville, and [inaudible 00:04:08], this corridor is very similar to this corridor. Houses were built to kind of in the ’50s and ’60s. Rents are very similar there and what you will find is that while the houses are the same, there’s just less of them. So great deals there, but once you get past this junction right here it is just straight farmland. So, Graysville is kind of the last stop on the train track, so to speak.

Heading down into Pleasant Grove, Hueytown, excellent areas for investing, a lot of great rental houses. There are some fix and flip opportunities there. You’re looking at solid B neighborhoods.

Now as you get into the city, the low kind of C class neighborhoods run from the northeast in Birmingham. So they kind of start right around here and then they run kind of southwest, down through Midfield, Fairfield. So this is kind of your C class neighborhoods, tons of rental. It’s where most investors kind of cut their teeth in Birmingham.

So that’s a quick overview. I hope it was super helpful. If you have any questions, please call us. Our telephone number is 205-940-6363 extension 3.

If you want to dig into some of these areas, I’m also going to be shooting some videos on the individual areas. But if you have some specific questions, call us up, we’d love to help.

I’m Mathew Whitaker with gkhouses.

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