It is a Massive Student Market
Montgomery in Alabama is a good investment option. Student housing gives a stable income and higher than average returns. The cap rates on student housing properties recently sold were around 6%. Investment opportunities are also available in older student housing that can be restored and rented out as premium.
You’ll also observe a constant turnover as people graduate, followed by incoming freshmen. These tenants will never purchase a home until after graduation, and if they face trouble paying the rent, arranging a roommate is an acceptable solution. Montgomery Alabama, real estate market, is ideal for those who wish to invest in student housing since there are more universities in the area. Therefore, it is an attractive option for a 1031 Exchange.
A Huge Rental Market for Multi-Family Housing
While the cost of housing and living are comparatively low in Alabama, many residents do not buy a home. This has created a relatively stable market for multi-family housing.