Business
In Episode 20 of the Profitable Powerhouse Properties Podcast, we continue “Market Madness March” with your hosts Jonathan Cook and Bryan Jenkins. They discuss the market in Huntsville, Alabama, from how quickly it’s growing to the speed the market is moving. Episode Highlights: 4,600 jobs will be added to Huntsville with the construction of a new Toyota plant. In regards to manufacturing, the growth of cities like Montgomery and Mobile has primarily been in service to support manufacturing already going on in Huntsville. The FBI and over 60 other federal agencies and contracting centers have locations in Huntsville. The jobs being created in Huntsville aren’t your standard blue collar factory jobs, they’re literally in rocket science—highly skilled work requiring incredibly smart people. Google also has a data center in the area. These are high-paying jobs, meaning property values will go up. Home value has increased by about 9% each year since 2017. These new highly skilled jobs and the growth in overall population means Huntsville will need more support staff, construction workers, police, even Uber drivers. There are over 200 new construction homes that are selling in the $200,000-500,000 range. The market is moving incredibly fast; homes lease at $1,800 a month in a day. You can’t use generic vacancy rates to figure out your profits, you should use local data to get a real understanding of the market. 3 Key Points: Huntsville is unique for the skilled jobs being created there as opposed to blue collar factory jobs. Growth in skilled labor requires growth in blue collar and unskilled labor workforce too, to support the growing population overall. If you want to invest in Huntsville, you have to be ready to move quickly. Tweetable Quotes: “In any sort of cap rate or return that you’re looking at, you’ve really got to play with the real numbers. And one of those numbers that I really think everybody needs to focus on is that vacancy rate, and maintenance.” –Jonathan Cook “If you want to play in that market, you have got to be ready to pull the trigger. If you want to put an offer on something, you’ve got to do it that day or you lose it.” –Bryan Jenkins Resources Mentioned: Check out our website ahiproperties.com Check out Birmingham Insurance Group online or call them at (205) 616-1107 Buy, sell, and own investment properties the way the pros do it with www.roofstock.com Email Jonathan and Bryan at Podcast@AHIProperties.com