I recently moved back to the Charlotte, NC area after 4 years of living in Chicago. I am a relatively new investor and I wanted to househack small multifamily units (2-4) in the Charlotte, NC area but have found that there really aren't that many options in or around the metro area. Does anyone have any advice or suggestions on this? Should I pivot into another REI class (single family, BRRRR, etc.)? If you have had REI success in the Charlotte area, I would greatly appreciate your input!
It's definitely a crowded space with limited inventory. Off market is still the best way to find deals. Our team calls on small apartment owners daily. If you do get ahold of a small multi, one way you can boost your ROI on a multifamily house hack is with short term rentals. Live in one and airbnb the other 1-3. Some prefer steady tenants. Some implement a combo (live in one, airbnb one, long term tenants in 2).
There may not be many options on market but my quick search shows there are over 3,000 2-4 unit multi families in Charlotte NC. Pull your list and start direct mail or cold call/texting.
@Logan Hartle Good advice/ideas. Whats your success rate with off market deals? 1 deal for every 20-30 calls? Just want to have a point of reference to go off of with someone who does it frequently.
@Scott Bottomley true! Thanks for that. I will try that instead!
@Brandt Bronico the ratio of calls to deals will be much higher than that. If I were you I would certainly look at a list if 150-250 properties that match what you are looking for and call them all regularly
@Brandt Bronico the multifamily properties that perform well in this market are difficult to find. Right now most of the MLS listings don't meet many basic underwriting criteria and unless they are heavily mismanaged or in need of full rehab. I like that you are looking to move into one of the units are you planning to use FHA?
I would not expect to find 1 deal per 30 calls (this is coming from someone who was a multifamily broker in a large metro) you will find deals but not at that rate. Maybe some people throwing random high numbers at you to make you go away or pay up. So expect to reach out more than that if you are looking for a serious seller.
One dynamic in this market is that unless its a large multifamily property with built-in amities or in a prime location it doesn't make a lot of sense unless is a pure cashflow play in an area that is not located in the CLT metro. The cost of living in the city and easy commute times do support the population density that a market geared towards smaller multifamily would. I would recommend calling or driving by any areas you would consider owning a property and making note of any properties that look like they need some TLC.