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Anyone purchased a condo in Tuscaloosa?
Posted on 11/11/25 at 1:54 pm
Posted on 11/11/25 at 1:54 pm
We've had what we believe to be a great opportunity fall in our laps in Tuscaloosa. Wouldn't consider it normally, but our oldest is at UA and it appears mortgage payments would be cheaper than we'd be paying for an apartment, especially after including rent payments we'd receive on the additional rooms.
So far all of the worst case scenarios I run through in my mind and in budgeting scenarios turn out pretty good for us in the end. If you've done this in the past, could you please let me know the hidden negatives you didn't consider/know before moving forward?
So far all of the worst case scenarios I run through in my mind and in budgeting scenarios turn out pretty good for us in the end. If you've done this in the past, could you please let me know the hidden negatives you didn't consider/know before moving forward?
This post was edited on 11/11/25 at 1:56 pm
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Posted on 11/11/25 at 2:01 pm to imjustafatkid
I was sitting at a game this year at halftime and saw a condo development off in the distance and asked my buddy who does real estate how much something like that would go for.
When he told me $1.3M that was the end of my curiosity.
Id just be aware that if you're renting it out to non family members the odds its going to be beaten up are extremely high and that you'll need someone on call as a maintenance/handyman in case of leaks, etc if its not managed by the property.
Also look at the tax considerations as you wouldn't have homestead, not sure how they handle it in AL. With some of these higher value properties taxes can become a major variable as far as cash flow.
When he told me $1.3M that was the end of my curiosity.
Id just be aware that if you're renting it out to non family members the odds its going to be beaten up are extremely high and that you'll need someone on call as a maintenance/handyman in case of leaks, etc if its not managed by the property.
Also look at the tax considerations as you wouldn't have homestead, not sure how they handle it in AL. With some of these higher value properties taxes can become a major variable as far as cash flow.
Posted on 11/11/25 at 2:25 pm to tide06
I think homestead exception in Alabama makes your tax bill nearly a quarter of what it would be without it. At least that was roughly the case for me in Tuscaloosa County.
Since you’d be taking out a mortgage then it would be built into the escrow monthly payments, so your bottom line payment will be higher but you won’t have to eat it all at once until you own it.
I’d agree with the comments about being careful about renting it out after your kid graduates from college. You will be doing significant repairs.
I’d make sure to understand what are your repair responsibilities and what the property management is responsible for before buying it.
Since you’d be taking out a mortgage then it would be built into the escrow monthly payments, so your bottom line payment will be higher but you won’t have to eat it all at once until you own it.
I’d agree with the comments about being careful about renting it out after your kid graduates from college. You will be doing significant repairs.
I’d make sure to understand what are your repair responsibilities and what the property management is responsible for before buying it.
Posted on 11/11/25 at 3:00 pm to tide06
quote:
When he told me $1.3M that was the end of my curiosity.
We certainly aren't considering anything close to this range. 
quote:
Id just be aware that if you're renting it out to non family members the odds its going to be beaten up are extremely high and that you'll need someone on call as a maintenance/handyman in case of leaks, etc if its not managed by the property.
Completely aware. We will essentially own and be responsible for the condo interior only. Already talked to my insurance guy about this and got that all set up. This property is a gated condo community with an HOA that handles all exterior issues.
quote:
Also look at the tax considerations as you wouldn't have homestead, not sure how they handle it in AL. With some of these higher value properties taxes can become a major variable as far as cash flow.
Good thought. I'll have to look into potentially making this my student's "primary residence" and see if we can use homestead exemption that way. If not, the property taxes aren't going to be high enough to make this untenable.
Posted on 11/11/25 at 3:10 pm to imjustafatkid
quote:
Good thought. I'll have to look into potentially making this my student's "primary residence" and see if we can use homestead exemption that way. If not, the property taxes aren't going to be high enough to make this untenable.
This might also be a pathway to a future wealth transfer if you want to begin setting up a trust or something along those lines and avoiding inheritance taxes down the road, but Id talk to an advisor if you're in a position where you want to explore it.
Posted on 11/11/25 at 3:14 pm to Diego Ricardo
Thought you had to be pretty old to get homestead exemption, and it has to be your primary residence.
Posted on 11/11/25 at 3:28 pm to Night Vision
quote:
Thought you had to be pretty old to get homestead exemption, and it has to be your primary residence.
What you're talking about is a different type of exemption for the elderly which excludes them from paying virtually all property tax afaik. Everyone qualifies for homestead exemption on their primary residence.
This post was edited on 11/11/25 at 3:29 pm
Posted on 11/11/25 at 3:31 pm to tide06
quote:
This might also be a pathway to a future wealth transfer if you want to begin setting up a trust or something along those lines and avoiding inheritance taxes down the road, but Id talk to an advisor if you're in a position where you want to explore it.
We're probably going to list her on the loan as a method to start building credit for her. We have enough equity in our house to cover completely in the event of total financial collapse on our end, so not really any risk to her.
Posted on 11/11/25 at 3:32 pm to imjustafatkid
I have not but glad two friends have. Sort of like the friend with the boat.
Posted on 11/11/25 at 3:33 pm to McGregor
quote:
I have not but glad two friends have. Sort of like the friend with the boat.
They complain about it a lot? Having to put a ton of extra funds into it every year?
Posted on 11/11/25 at 4:32 pm to imjustafatkid
What condo? I looked at several to short term rent this year but decided to buy a house instead. If it is a nice place on the UA side of 15th street and you can afford it, it'll be a good investment for the future. You can find grad, law, nursing students and young professionals that only need a place for a year or two and dont trash the place when your kid doesn't want to live there anymore.
Posted on 11/11/25 at 4:40 pm to Syd
quote:
What condo? I looked at several to short term rent this year but decided to buy a house instead. If it is a nice place on the UA side of 15th street and you can afford it, it'll be a good investment for the future. You can find grad, law, nursing students and young professionals that only need a place for a year or two and dont trash the place when your kid doesn't want to live there anymore.
It's closer to University Mall, but nearly the entire complex is filled with college students. Going this weekend to take a look at the property before pulling the trigger. We had considered going the house route, which definitely seems like a good investment, just got kind of "lucky" with this opportunity. Hadn't even looked at condos and was not considering them.
This post was edited on 11/11/25 at 6:02 pm
Posted on 11/11/25 at 4:52 pm to Syd
as a person in wheelchair. if you do end up buying and renting, unless it's completely accessible, please dont advertise as wheelchair accessible. it's amazing how many condos are advertised as wheelchair accessible when the front door and sliding door to the balcony are the only ones most adult chairs will go thru. more than once ive ended up having to transfer from my chair to a strip down roll around office chair just to get into the bathroom and bedroom, in condos advertised as wheelchair accessible. i'll get off my soapbox now.
Posted on 11/11/25 at 5:22 pm to imjustafatkid
They don’t. One family kept it after the kids left, and one is selling after the last kid leaves in the spring.
When I asked, it was way more $ than I was anticipating.
When I asked, it was way more $ than I was anticipating.
Posted on 11/11/25 at 5:37 pm to imjustafatkid
Be prepared for family and friends hitting you up randomly and expecting a place to stay with little to no notice. It’s amazing how many times their reservations got cancelled at the last second and have no other options. No cap!
Posted on 11/11/25 at 5:52 pm to Gj4Bama
Well, nothing wrong with asking but I know they have lots of requests too. Gotta respect that fact if they do. And don't ask all the time.
Posted on 11/11/25 at 6:00 pm to McGregor
quote:
They don’t. One family kept it after the kids left, and one is selling after the last kid leaves in the spring.
Right on. We have a few kids coming down the line so could potentially use it for all of them.
Posted on 11/11/25 at 6:00 pm to Gj4Bama
quote:
Be prepared for family and friends hitting you up randomly and expecting a place to stay with little to no notice. It’s amazing how many times their reservations got cancelled at the last second and have no other options. No cap!
I'm pretty good at saying no, but you are obviously correct.
This post was edited on 11/11/25 at 6:01 pm
Posted on 11/11/25 at 6:04 pm to crimsontater
quote:
as a person in wheelchair. if you do end up buying and renting, unless it's completely accessible, please dont advertise as wheelchair accessible. it's amazing how many condos are advertised as wheelchair accessible when the front door and sliding door to the balcony are the only ones most adult chairs will go thru. more than once ive ended up having to transfer from my chair to a strip down roll around office chair just to get into the bathroom and bedroom, in condos advertised as wheelchair accessible. i'll get off my soapbox now.
Thanks for the tip. I have no control over how the complex advertises things, but I will try to be mindful with my own descriptions.
Posted on 11/11/25 at 6:48 pm to imjustafatkid
quote:
So far all of the worst case scenarios I run through in my mind and in budgeting scenarios turn out pretty good for us in the end. If you've done this in the past, could you please let me know the hidden negatives you didn't consider/know before moving forward?
There are some condos that cant be rented out. I think Legends condos near stadium are like this. If you can find one in a good spot, you could potentially Airbnb it for a game or two(or graduation) to pay some of mortgage.
However...one negative is the intensive process that is obtaining a permit for short term rentals. It requires some extra things beyond normal code and also requires attendance at a planning committee meeting to review your application. They usually give ~30 days total for year to short term rent.
Other than that I dont see any drastic corrections in the market coming. If you can get a good deal and have the means, id go for it.
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