Flipping houses a big business in Birmingham

Flipping houses a big business in Birmingham
Birmingham house flip (Source: WBRC)

BIRMINGHAM, Ala. (WBRC) - What Justin Mundie calls an urban farmhouse – a three bedroom, one bathroom house with new floors, new roof and new AC - can be yours for just under $95,000. And if you hadn’t considered moving to Woodlawn before, Mundie suggests you might be missing out on a bargain.

“It’s adjacent to Crestwood and Avondale, they’re adjacent to Eastwood and the shopping, we’re adjacent to the airport, we’re adjacent to the interstate,” says Mundie, a realtor with H2 Real Estate and a real estate investor with his own family firm, Mundie Investment Group.

But as our partners at the Birmingham Business Journal have been reporting for some time now, real estate investors from across the country have been buying up property in Birmingham.

So much so, that a Realtor.com survey says investors are buying 17% of homes in the city, second only to St. Louis at 18%. Realtor.com Senior Economist George Ratiu says investors know they can get a lot for a little in a metro with a strong economy.

“Housing prices in Birmingham relative to other metropolitan areas are much lower” says Ratiu. He adds “investors see a solid economic base with good demand as well as great opportunities both for flipping but for investors who can’t flip very quickly there’s also a great rental market.”

Mundie and his wife apparently saw much the same thing when they stopped flipping homes in Nashville several years ago to bring their family business to Birmingham.

With the evidence of turnarounds in neighborhoods like Crestwood and Avondale, Mundie believes there are more optimistic bargain hunters out there.

“They see what this neighborhood looked like 80 years ago,” says Mundie, “and what could it look like again.”

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