Alabama Real Estate - Why Should You Do A 1031 Exchange In Alabama?

MONTGOMERY, Ala. - Aug. 9, 2019 - PRLog -- Alabama Real Estate Market is considered one of the hottest housing markets in the U.S. It has an extremely low unemployment rate and a robust cash-flow market. There is a strong need for rental housing as the region has around 8 colleges and universities. The cost of living is 5% lower the U.S. average, and there are also several great paying jobs in the area. Let's go through the reasons in detail which makes Alabama such a desirable option.

Why should I do a 1031 Exchange in Alabama?

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. 1031 exchange in Alabama (https://1031xchange.com/1031-exchange-alabama) is ideal for those who wish to invest in student housing since there are more universities in the area.

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.

A Strong Single-Family Rental Home Market

The 2017 Realtors Confidence Index Report called the outlook for single family homes in Alabama as "very strong." Buyer traffic for Alabama was observed as reliable. For seller traffic, Alabama was stated as having moderate seller conditions.

Suburbs with Potential

Prattville located near Montgomery, Alabama, is an exciting option. Capitol Hill Golf Course is located here which is the site of the Nationwide Tour. This town's population has doubled in the past ten years. This is an excellent place to consider purchasing a rental home whether you're catering to people or snowbirds relocating to the area.

Strong Cash-Flow

The median rent priced in Alabama is $1000 a month as per Zillow. If you place $13,000 down on the basic home in the Montgomery real estate market and acquire a $70,000 30-year mortgage at 5%, monthly payments will shape at $429.

Tax Friendly State

Alabama has astonishingly low taxes. The state and local tax burden rank among the top ten (best) in the U.S. It has a 5% state income tax, which is low, and a 6.5% maximum corporate income tax rate. Alabama is a promising destination if you are looking at a replacement property for a profitable 1031 Exchange.