Investor · Bali, Indonesia · Member since 2016 · 45 posts · 16 votes
Hello Savvy Investors!
I'm looking for help trying to nail down a target investment area. I'm aiming for buy & hold investments with solid Cash on Cash plus good possibilities for future appreciation. I'm targeting 4-plexes so I can use 20% down payments rather than higher 30% or 35% on commercial properties (idea being more leveraged investment in a high cash flow area).
My research has lead me all over creation =D but I'm starting to narrow the search down to Indianapolis and Charlotte. Any input whether I'm barking up the right trees & if so, which of these would you put your dollars & sense into?
As much as I like Indianapolis, I don't like it for MF in general. A lot of the MF is in old rough areas and it's hard to get quality tenants. There are exceptions of course so you would have to be very careful. I don't know Charlotte at all, so I can't say if it's any better. With MF in any market, the key is being in the right area so be sure you know the neighborhoods very well.
As much as I like Indianapolis, I don't like it for MF in general. A lot of the MF is in old rough areas and it's hard to get quality tenants. There are exceptions of course so you would have to be very careful. I don't know Charlotte at all, so I can't say if it's any better. With MF in any market, the key is being in the right area so be sure you know the neighborhoods very well.
I am skeptical of renter growth projections in cities with below average minority representation. I'm not trying to sound racist, there are lots of social economic dynamics and historical U.S. data that support my beliefs that racial and ethnic minorities are the driving force of growth markets. For that reason I prefer Charlotte to Indianapolis, if those are the cities I have to choose from.
I think San Antonio is a great market, DFW, and El Paso maybe even betterbetter as they are earlier on in their development. The growing Latino population is where I would invest if my strategy was strong in MF.
I'm looking for help trying to nail down a target investment area. I'm aiming for buy & hold investments with solid Cash on Cash plus good possibilities for future appreciation. I'm targeting 4-plexes so I can use 20% down payments rather than higher 30% or 35% on commercial properties (idea being more leveraged investment in a high cash flow area).
My research has lead me all over creation =D but I'm starting to narrow the search down to Indianapolis and Charlotte. Any input whether I'm barking up the right trees & if so, which of these would you put your dollars & sense into?
All advice & input is helpful and appreciated!
Daniel
Daniel we spoke PM but I will chime in here. We are building 150 rental units for one company out of Utah, here in Charlotte and surrounding markets. Have another company that we are working on a deal for 100 Units. These are a mix of Duplex, Quads, and SFR. The biggest obstacle I have is finding the land the is zoned for the Mulitfamily. I have a group of lawyers working on 172 lots total.They are working with the different cities changing the zoning. Most of this takes time but we are looking at 3 year project. At the same time I am looking for larger Apartments in second tier cities around Charlotte for my own portfolio. 23 duplex lots we are trying to get changed to allow quads.
Have you looked at larger Apartments and why Quads. I like to get more insight to why. Then I can help answer in more detail.
Alex Franks Hi Alex, I'm mainly looking at 4-plex b/c I'd like to leverage more. I'm speaking of the down pmt. With 4-plex or less, I only need 20% down.
For instance, if I want to invest $100K. At 20% down I can purchase $500K of re. At 35% down for commercial, I max out at $285K. With larger amounts it gets to be a large difference. Not only less leverage but the CoC is directly and significantly impacted. That's my main thought process.
If I can find larger deals without the leverage & CoC limitations, I'm all ears. Makes sense?
Alex Franks Hi Alex, I'm mainly looking at 4-plex b/c I'd like to leverage more. I'm speaking of the down pmt. With 4-plex or less, I only need 20% down.
For instance, if I want to invest $100K. At 20% down I can purchase $500K of re. At 35% down for commercial, I max out at $285K. With larger amounts it gets to be a large difference. Not only less leverage but the CoC is directly and significantly impacted. That's my main thought process.
If I can find larger deals without the leverage & CoC limitations, I'm all ears. Makes sense?
No it makes complete sense. My self I am looking for 100 unit apartment close to me in second tier cities. I done the single family thing for years. Don't get me wrong I see quads, and duplexes as solid investment. I am just looking for some thing larger.
I will send you via email the first 23 duplexes I am building for one company. The second build is 17 single family rentals same company . We are having hard time finding the land the is zoned for Quads. So that will take a minute for those. Bare with post it is 339 am here. Just waking up, first cup of coffee.