The house at the link below was listed at $205,000 / $100 psf. The average sold price in the neighborhood is $103 psf. She is thinking of listing at $199,000 or $97 psf. With a discounted brokers fee she may be willing to go lower. Her goal is to sell without bringing money to closing. She paid 189,000 in 2006. At a 3% broker fee and no paid costs for purchaser her breakeven on a sale will be in the $190,000 $92 psf range. Compared to the average sold price of $103 psf there is about $22,000 in equity at that price.
NALMLSReports/ListitLib/show_report.aspx?ID=7112215985
The house rented at $1,195 to a very stable tenant
The link below is to four active Huntsville AL MLS listings of multifamily properties that may be worth a closer look.
NALMLSReports/ListitLib/show_report.aspx?ID=7112223542
6206 FRIAR TUCK CIRCLE is near the bridge street shopping and entertainment center, Redstone Arsenal and Research Park. The schools that serve the property are not the best and it is located in an area with a high concentration of multi-family properties. It has been on and off the market since 07/30/12. The link below is to where the current owner bought it in 2006 for $196,000. It is currently listed at $179,000. Counting the 6% broker's fee seller is willing to take a $28,000 loss to get out of the property. The listing indicates an 100% occupancy but does not include full financial information.
NALMLSReports/ListitLib/show_report.aspx?ID=7112223543
For some reason this owner is willing to take a substantial loss to get out of the property. It is not uncommon to see owners of multi-family units in this position and is one of the reasons I urge extreme caution with MF units.
We had to look back to the peak of Huntsville's housing boon in 2007 to find any sales. The link below is to a summary of those sales. Note the number of withdrawn listings that didn't sell and how prices have crashed since 2007.
NALMLSReports/ListitLib/show_report.aspx?ID=7112223544
276 GATE STREET In Gurley holds some interest long term because Huntsville is slowly growing in that direction. As I mentioned before, I researched and previewed this property in 2007. The overall condition was decent but I think I did recall some deferred maintenance. There are a few smaller, older houses surrounding the property and I think I recall a mobile home or two nearby. There are railroad tracks a about 100 yards south of the property. I was there when a train went by. While you can definitely hear the train, it didn't shake the buildings.
I have emailed the listing agent asking for actual expense records. I think there is a resident manager.
The link below is to a satellite image of the property.
f=q&source=s_q&hl=en&geocode=&q=276+GATE+STREET,+GURLEY,+AL+35748&sll=37.0625,-95.677068&sspn=33.352165,86.396484&ie=UTF8&hq=&hnear=276+Gate+St,+Gurley,+Madison,+Alabama+35748&t=h&z=16
12000 SUGAR MILL CIRCLE , #ABCD is located in a decent southeast Huntsville neighborhood. The schools are good and commutes to Redstone Arsenal modest. There is a high concentration of multi-family units in the area and some of the units may back up to busy streets. If the mapped location on the listing is correct the unit backs up to Hobbs Road, a pretty busy four lane street. It is a little hard to commute from south Huntsville to other areas of the city including Research Park.
This property has been on market since 04/01/12. The current owner paid $117,000 for the property in 2005. The listing shows two vacant units and twos leases as month to month. I have asked the listing agent for the missing expenses information.
12007 SUGAR MILL CIRCLE is in the same area and is listed as a short sale. The seller is about to loose the property in foreclosure and is asking the lender to let him sell for less than the loan balance to avoid foreclosure. The lender may pursue the seller for any unpaid balance on the loan. Wile the financials show a net income of $6,700 per year one has to wonder why the seller is having to sell for less than the loan amount. If the map placement is correct, this unit does not back up to a busy street.
The current owner paid $232,000 for the unit in 2007. Again a $77,000 loss is not a very good investment.
The link below is to a summary of Huntsville AL MLS activity in the development since 01/01/07. It isn't pretty. Prices have dropped remarkably since 2007.
NALMLSReports/ListitLib/show_report.aspx?ID=7112223550
The link below is to a multi-family unit that we still manage. We had it sold in 2008 but the purchaser's funding fell through. It is in a great area with good schools just east of Huntsville's downtown and medical districts. Monte Sano is a very desirable area. The property is old and we have consistent maintanance. When we picked up management in 2007 they have been mismanaged. We have been getting the units in good condition and raising rents since we began management. wile the financials were accurate at the time of the listing we have increased rents and it will take a few days to update the expenses. I think rents are approaching $500 now. I don't know waht the current owners paid for the property nor their purchase date.
NALMLSReports/ListitLib/show_report.aspx?ID=7112223551
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