The post Real Estate Investment Markets in Alabama by Jordan Robertson appeared first on Benzinga. Visit Benzinga to get more great content like this.
Investing in real estate can be a lucrative way to build wealth and generate passive income. However, not all markets are created equal, and it’s essential to do your research before investing. Alabama is a state with a diverse economy, growing population and affordable housing prices, making it an attractive location for real estate investors. In this article, Benzinga explores the best real estate investment markets in Alabama and the pros and cons of investing in each city.
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Birmingham
Birmingham is the largest city in Alabama and home to many major corporations, including Regions Financial Corporation and Protective Life Corporation. The city has a thriving business and job market, making it an attractive location for young professionals and families.
Pros:
- Affordable housing prices and strong rental yields
- Growing job market and diverse economy
- Access to cultural attractions such as the Birmingham Museum of Art and the Alabama Theatre
Cons:
- Some neighborhoods have higher crime rates and lower property values
- Limited public transportation options
- Competition for desirable properties can be high
Mobile
Mobile is a port city located on the Gulf of Mexico and is the fourth-largest city in Alabama. The city has a rich history and is known for its Mardi Gras celebrations and historic architecture.
Pros:
- Affordable housing prices and strong rental yields
- Growing job market and diverse economy
- Access to cultural attractions such as the USS Alabama Battleship Memorial Park and the Mobile Carnival Museum
Cons:
- Some neighborhoods have higher crime rates and lower property values
- Limited public transportation options
- Risk of hurricane damage due to proximity to the Gulf of Mexico
Huntsville
Huntsville is a city located in northern Alabama and is home to many major employers, including NASA and the U.S. Army. The city has a thriving technology and aerospace industry, making it an attractive location for skilled workers.
Pros:
- Strong job market and growing economy
- Affordable housing prices and strong rental yields
- Access to cultural attractions such as the U.S. Space & Rocket Center and the Huntsville Botanical Garden
Cons:
- Limited public transportation options
- Competition for desirable properties can be high
- Risk of tornadoes due to the city’s location in Tornado Alley
Tuscaloosa
Tuscaloosa is a college town located in western Alabama and is home to the University of Alabama. The city has a strong sports culture and is known for its football team, the Alabama Crimson Tide.
Pros:
- Affordable housing prices and strong rental yields
- Growing job market and diverse economy
- Access to cultural attractions such as the Tuscaloosa Museum of Art and the Bryant-Denny Stadium
Cons:
- Limited public transportation options
- Some neighborhoods have higher crime rates and lower property values
- High turnover of renters due to the student population
Montgomery
Montgomery is the capital city of Alabama and is located in the central part of the state. The city has a rich history and played a significant role in the Civil Rights Movement.
Pros:
- Affordable housing prices and strong rental yields
- Growing job market and diverse economy
- Access to cultural attractions such as the Rosa Parks Museum and the Alabama Shakespeare Festival
Cons:
- Some neighborhoods have higher crime rates and lower property values
- Limited public transportation options
- Competition for desirable properties can be high
Auburn
Auburn is a college town located in eastern Alabama and is home to Auburn University. The city has a strong sports culture and is known for its football team, the Auburn Tigers.
Pros:
- Affordable housing prices and strong rental yields
- Growing job market and diverse economy
- Access to cultural attractions such as the Jule Collins Smith Museum of Fine Art and the Chewacla State Park
Cons:
- Limited public transportation options
- Competition for desirable properties can be high
- High turnover of renters due to the student population
Best Real Estate Investing Platforms
Get Top Offerings
Get Started
securely through Arrived Homes’s
website
Arrived Homes is a real estate investment platform that focuses on building wealth through investing in rental properties. While most real estate platforms and REITs focus on commercial properties, Arrived Homes focuses on single-family homes as its source of rental income.
This focus on smaller properties allows Arrived Homes to sell ownership shares on individual properties to non-accredited investors with buy-ins as low as $100. Learn more about Arrived Homes with Benzinga’s review.
Best For
- Small- to medium-sized investors
- Investors interested in rental income
- Investors looking to diversify
- Buy-ins as low as $100
- Open to non-accredited investors
- Offers ownership shares in real property (and all the tax benefits)
- Multiple ways to earn dividends (rental income and property appreciation)
- Great way to diversify portfolio
- Open to self-directed individual retirement accounts (IRAs)
- Long hold periods
- No secondary market to liquidate shares
get started
securely through CityVest’s
website
CityVest is a web-based real estate investment platform that was established to give small-to-medium-sized investors access to real estate investment opportunities that typically require 6-figure minimum investments. CityVest does this by pooling multiple investor contributions into 1 bundle large enough to satisfy the minimum investment requirements of the best institutional private equity real estate investment funds.
Best For
- Individual investors seeking access to institutional investments
- Experienced investors looking to diversify their portfolio
- Investors seeking investments with strong due diligence and screening
- Access to high-performance institutional funds
- High returns
- Intense vetting of investment opportunities
- Third-party due diligence on all funds
- No registration needed to review investment opportunities
- Quarterly distributions
- Only available to accredited investors
- Not a lot of investor control of fund options
see offerings
securely through Caltier Realty’s
website
CalTier is an equity crowdfunding platform that opens the door to professionally managed institutional grade multi-family investments not typically available to the retail investor. The company identifies, negotiates, invests and manages these multi-family assets on your behalf so you don’t have to.Non-Accredited Investors accepted. No Minimum lock-in period.
Best For
- Low minimum investment of $500
- No minimum lock-in period
- Non accredited investors accepted
- Multi-family property investments
- Not many offerings consistently
Get started
securely through CrowdStreet’s
website
Crowdstreet is an online real estate investment platform that lets investors choose from a wide range of real estate investment offerings to crowdfund. Crowdstreet investors are free to buy into managed funds, individual buildings or even build a bespoke investment portfolio that includes both kinds of deals.
CrowdStreet’s platform has a diverse range of property types, ranging from multifamily to office, industrial, self-storage and others.
Best For
- Accredited investors
- Long-term investors
- Investors looking to diversify from stocks
- User-friendly interface
- Diverse investment offerings
- Great investor resources
- Proven performance history
- Many offerings eligible for inclusion in self-directed IRA
- Accredited investors only
- Most offerings require a $25,000 minimum investment
get started
securely through Groundfloor’s
website
Groundfloor is open to non-accredited investors and private individuals looking for active real estate alternative investment. Groundfloor has great volume with more than 10 investments.
Individuals with small portfolios will also like the low $10 minimum and 0 investor fees. However, most of the loans are given to house flippers, and there is a risk of borrowers defaulting on their loans.
Best For
- Non-accredited investors: It is a good option for non-accredited investors who want to invest in an individual capacity.
- Private investors with small portfolios: Groundfloor charges a relatively small premium of $10, which private investors with small portfolios find attractive.
- Active-investors: Groundfloor is also ideal for investors who want to actively maintain and control their real estate portfolio.
- Charges the lowest minimums in the industry
- 0 investor fees
- Open to non-accredited investors
- Offers no bankruptcy protection
- High rate of an uncured default
- Many loans are for judicial-only states
get started
securely through RealtyMogul’s
website
This unique online platform enables investors to handle the entire commercial real estate investing process right from their RealtyMogul dashboard. With rigorously vetted property listings, expertly managed REITs, and a commitment to providing top-notch service and support to its members, RealtyMogul makes commercial real estate accessible to everyday investors.
Best For
- Newer accredited investors who want access to pre-vetted properties
- Non-accredited investors seeking consistent cash flow from well-managed REITs
- Experienced real estate investors who want access to deal-specific information that allows them to perform their own due diligence more easily.
- Do everything from finding the investment property through to signing the legal documents and monitoring your portfolio, all in one platform.
- All properties are pre-vetted through RealtyMogul’s transparent and rigorous due diligence process.
- Investment minimums as low as $5,000
- Keep track of investments with regular updates posted directly to your dashboard
- Automated investing
- Individual property marketplace is only open to accredited investors
- Does not offer portfolio management
get started
securely through First National Realty Partners’s
website
First National Realty Partners (FNRP) is a private equity firm that focuses on investing in high-traffic, grocery-anchored commercial real estate. FNRP employs a strict set of qualification criteria that investments must meet before they can be considered for inclusion in FNRP’s portfolio. The only deals you’ll see on the company’s platform have been well-vetted by professionals who have determined that the investment has potential. Though you’ll need to make a $50,000 initial investment to get started with FNRP, this amount is significantly lower than the amount you’d typically need investing in commercial real estate as a solo investor.
Best For
- Investors seeking a stable asset class to hedge portfolio against volatility
- Investors with long-term appreciation goals
- Investors seeking a fully passive investment opportunity
- Accredited investors looking for alternative investments
- Strong due diligence process
- Partners receive quarterly cash distributions
- 100% in-house investment process helps deals close quickly and secures more value and control for investments
- $50,000 minimum investment
- Accredited investors only
get started
securely through Fundrise’s
website
Fundrise is an online real estate investing platform with two clear aims: to simplify and democratize real estate investing. While there is no shortage of real estate investing platforms, Fundrise is one of the few that is open to non-accredited investors. Traditional real estate investing, and by extension most real estate crowdfunding platforms, require investors to pledge large amounts of capital. As opposed to the $25,000 to $50,000 investment minimums on many competing platforms, Fundrise distinguishes itself from the crowd by accepting investor contributions as low as $10.
The platform also has some of the highest quality real estate deals available. With a massive portfolio of institutional-quality properties, Fundrise investors can generate cash flow and long-term growth through a diverse portfolio of commercial real estate, multifamily properties, single-family rentals and ground-up developments.
Best For
- New real estate investors looking to get their feet wet
- Non-accredited investors
- Real estate investors who want a “set-it and forget it”-oriented option
- Investors looking for low-to-moderate cost buy-ins
- Multiple offerings available to non-accredited investors
- Simple menu of investment options
- Can use for IRA contributions
- Incredibly affordable buy-ins
- Low, easy-to-understand investor fee schedule
- Extended hold periods
- Limited secondary market
Final Thoughts on Alabama Real Estate
Alabama is a state with many attractive real estate investment markets, from the bustling city of Birmingham to the college town of Auburn. However, as with any investment, it’s essential to do your due diligence and research the local market before making a purchase. Consider factors such as job growth, rental demand, crime rates and potential natural disasters before investing. By investing in the right market, you can build long-term wealth and generate passive income through real estate.
Frequently Asked Questions
Is investing in real estate in Alabama a good idea?
Investing in real estate in Alabama can be a good idea, depending on the market you choose. Alabama has many growing cities with affordable housing prices and strong rental demand, making it an attractive location for real estate investors.
Answer Link
What is the average cost of a home in Alabama?
The average cost of a home in Alabama is around $180,000, making it one of the more affordable states to buy property in.
Answer Link
What should I look for when investing in real estate in Alabama?
When investing in real estate in Alabama, consider factors such as job growth, rental demand, crime rates and potential natural disasters. It’s also essential to research the local market and work with a trusted real estate agent who has experience in the area.
Answer Link
The post Real Estate Investment Markets in Alabama by Jordan Robertson appeared first on Benzinga. Visit Benzinga to get more great content like this.
