Why we love Huntsville, Alabama for turnkey rentals.
Just a 90 mile drive on the I-65 heading north from Birmingham will get you at Huntsville Alabama. Having a population of about 431,800, Huntsville is smaller than Birmingham, however it is rich in high paying jobs in the Aerospace, Technology and Defense sectors. As new jobs are being created the population is growing faster than homes are being built. This makes Huntsville a perfect environment for first time home buyers as well as real estate investors. The city also known as “ The Rocket City” has played a vital role in the development of space technology since the 1950’s. The beauty and charm of Huntsville makes it a city of comfort and hospitality.
USA today touted Huntsville as “one of the top communities leading the economic recovery,” while Money magazine named it “one of the nation’s most affordable cities.” The cost of living is 6.2% below the national average. Job and population growth have been steady of the past few years. The unemployment rate of 5.9% is also well below the national average. Economic diversity is a key factor in the stability of the Huntsville.
The top employer is the military with over 31,000 jobs at Redstone Arsenal. The local hospital systems and NASA Marshall Space Flight Center are the next largest employers. Approximately 50 of the fortune 500 companies, from GE to Lockheed Martin, Level 3 Communications, AT&T and Verizon have a presence in the Huntsville area. Toyota has a manufacturing plant where by 2015 their total investment will exceed $850 million. In 2013, this facility produced a record 540,000 engines. Finally, Huntsville boasts the nation’s second largest research park in the nation and 4th largest in the world. Cummings Research Park is a leading model for transforming research into business success. There is a vibrant mixture of fortune 500, local and international high-tech companies. Cummings Research Park is the center of attention for research and technology.
Alabama is ranked 24th in the USA for tax burden states, which is a good thing for investors:
- Flat corporate tax rate of 6.5%.
- Property tax on average is $548 per capita, and
- Top personal income tax rate is 5%
This is one of the reasons why Huntsville contains 46 Fortune 500 Companies including: General Electric, AT&T, Verizon, IBM, Boeing, Wells Fargo, Target, Comcast, UPS, Cisco etc.
Like most of Alabama, Huntsville enjoys lower tax rates to help with ROI. Renters take up about 38% of the market. With the steady job market and population, this allows investors with quality homes to attract solid, long term tenants. The average home age is 34.1 and the average home price is approximately $125,000. With distressed homes selling at a 44% discount, this is a great environment for flipping or a buy and hold strategy.
History and Culture
Huntsville was established in 1809 and in 1811 became the first incorporated town in Alabama. Rich in Civil War history, Huntsville was initially opposed to secession from the Union. Eight Civil War generals were born in or near Huntsville and were divided equally among North and South. Huntsville was spared the burning of many southern cities as it had a strong Union Army presence.Munitions facilities were developed during World War II and Redstone Arsenal became a driving force in the community after the war. In the 1950s and 60s, Huntsville played a key role in the development of the U.S. Space Program. The Space and Rocket Center is today a key tourist attraction that substantial revenue to the area. Over 1500 pieces of space memorabilia can be seen at there. Huntsville also has many parks, arts, and cultural facilities and has been named one of the top areas in the country for working retirement.
About Auxo Homes:
We do all the hard work. We connect you, the investor, with our best sourced properties and management companies to provide some of the coolest hands-off investing opportunities we know about. We have built a team over the years to create with turnkey rental properties — all the work (rehab, tenants, and management) all done for you, all you have to do is buy the property! Don’t worry, we help you through the due diligence. We can even help you get financing!
How you can make money with rental properties.
Turnkey rental properties provide passive income. With our management in place you will have hassle free income for less than 10 hours per year work or less! Owning a turnkey rental property is no different than owning any other kind of property, except with Auxo Homes all of the work is done for you. You get to sit back and have the rent deposited monthly in your bank account.
How Can Auxo Homes can help you?
We source the properties, renovate the properties, put great management in place and get a great tenant. During the purchase we hold your hand through the whole process. We have personally buy properties in the same markets and use the same people we connect you with, so we’ve ‘been there, done that’. You tell us! We are here for you, however you want us.
Why should you work with Auxo Homes?
The team members of Auxo Homes are passionate about real estate, & are all investors. It is important that we partner with other investors as we view it as a chef that eats their own cooking. We aren’t just some sales gig trying to get you to buy things, we really focus on your goals. Is passive turnkey investing right for you? Maybe not. If it isn’t, we won’t lie and say it is. We are more focused on the end game, which actually isn’t real estate, It’s lifestyle design. Meaning, we believe everyone should be able to live the life of their dreams. Passive income is the best way to do that because you don’t have to work for your money repeatedly, you make as in real estate you make money on the buy. Real estate investing has many advantages and happens to be one of the best vehicles for passive income, which is why we focus on it!