Every market has a story. Today, we focus on Birmingham, Alabama. In this episode, Marco Santarelli talks to two of his trusted local property partners to reveal how the state of Alabama has become successful in attracting foreign automotive companies and other big employers that draw a lot of current tenants. They discuss property values and why Birmingham can be called 'a linear market.' They also touch on clientele demographics and how to grow your rental property business. If you're a Millennial, opportunity awaits you in Birmingham.

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If you missed our last episode, be sure to listen to Market Spotlight: Houston, Texas.

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Market Spotlight: Birmingham, Alabama
Birmingham has been one of those perennial markets where property values have been low relative to all the other markets that we're in. It's been a consistent perennial cashflow market for us. Property prices are still at historic low levels there and relative to the rents you can get, it makes it a very attractive market. It's an affordable city. It's in the South, there's a lot of people move into the South as many of our audience know. It is also one of those great important business centers that reside in the Southeast US. We have been in Birmingham for many years and we move a lot of product there. We have very happy clients because of the cashflow and the opportunities that it provides us. I wanted to do a market spotlight. We're long overdue for market spotlight on Birmingham, Alabama. With me are two of my trusted local property partners out there, Merv and Stephanie. Welcome to the show. 

Thank you, Marco. It’s good to be here.

It's great to have you on. I'm excited about this interview because Birmingham is one of those markets that I've been putting off for a long time and it's a long overdue to have a fresh market spotlight on it. Let's jump right into this thing. Every market has a story and there's a reason why I should be considering a particular market. Why do you like Birmingham? Sell me on it at that 40,000-foot level.

We like Birmingham because it's one of those markets where the property values don't change up a whole lot. When we look at what's going on here and there are a few other cities around the country like this, we get an appreciation of let's say 2% to 2.5% a year, even when times are rocking like they are now when other markets are going up 10% to 12%, we're 2% to 2.5%. It makes it what we call a linear market, which doesn't change much, but it also makes it very predictable. When we get a house that's let's say $85,000, it's probably going to rent for somewhere around $850 a month. We've been able to do that time and time again. That's why we like the market and there's been a good inventory here. It's a little tighter now than it has been.

The other thing about the market is that there are a lot of good, solid employers here. Our automotive industry here is pretty strong. We've got a Mercedes plant down the road. We've got a Honda plant down the road. We've got a Toyota engine factory here. Obviously, I never mentioned any American brands. They're all foreign brands, which is interesting because Alabama has worked hard over the years to attract those kinds of industries, which gives us a solid underpinning.