Charlotte, NC · Member since 2019 · 8 posts · 3 votes
Hi BP Nation!
During the past several months, I have become highly interested in REI and have gained a wealth of knowledge by browsing this site, reading through forums, listening to podcasts, etc., and figured it is finally time that I jump in. I have developed a focus/interest around purchasing small multifamily units as buy and hold investments in the Charlotte MSA and general surrounding areas within North Carolina (given that is where I currently reside).
I am at the point where I would like to soon begin actively pursuing my first deal. I am very motivated and excited about the prospect of building wealth through REI; however, my lack of experience (being none) has definitely led to moments of hesitation as I would like to avoid any major mistakes on my first transaction.
Realtor · Charlotte, NC · Member since 2017 · 357 posts · 292 votes
7y
Hi @Jonathan Tambellini! I love the strategy of small multifamily properties. 1 roof, 1 foundation, multiple tenants :)
In the Charlotte market, this strategy is VERY challenging, just because the inventory is much more limited than single family/townhouse/condos. I've also found that most of the multifamily properties are in need of a lot of repairs and/or modernizing to maximize rents. I'm not sure if that's something you would be willing/able to take on?
A good real estate agent should be able to steer you away from major issues as long as you are open with them about your situation and goals. Have you reached out to any in the area yet?
Rental Property Investor · Fayetteville, AK · Member since 2019 · 40 posts · 41 votes
7y
Jonathan,
Welcome to BP! You're already ahead of so many other people being on this site. I'm currently going after the same strategy as you. Unfortunately, I can't give you specific advice for that market because I haven't analyzed there. But hopefully the next two brief tips, coming from someone who started in MFH not too long ago myself, help!
1) Keep up your education and don't quit! Starting out you'll notice a mix of different tempos depending on your market - sometimes things will move very quickly and not work out. Sometimes it'll move at a snail's pace and you'll feel like you're falling behind. Don't worry. Keep at it. Numbers are numbers, deals are deals. They're out there and you'll get 'em!
2) Start networking. It's incredibly important. Search the forums for people in your area. Search the events tab for meet-ups and ATTEND. Embrace your vulnerabilities and step outside your comfort zone. The more competitive your market is, the more you'll benefit from personal relationships.
Rental Property Investor · San Ramon, CA · Member since 2017 · 350 posts · 611 votes
7y
Hi JT,
Congrats on digging into REI and welcome to BP. Networking with brokers, lenders, etc is key. Education never stops as everything will be a learning process. I've been interested in the Charlotte area for MF. I've traveled to there and the metrics seem decent. We have a couple of MF acquisitions in California but strategy is slightly different as you can imagine with the prices of everything here.
Charlotte, NC · Member since 2019 · 8 posts · 3 votes
7y
Thank you @Eugene M. and @Paul Choi for the advice! I agree with both of you that beginning to develop a network, especially as a new investor in a larger, competitive market can be an essential key to success. That is definitely a priority of mine in the upcoming months.
Rental Property Investor · Orange County, CA · Member since 2018 · 28 posts · 11 votes
7y
Welcome JT,
I agree with Paul that having a network is the best place to start. You should be able to find some groups in your local area that you should begin to attend. Also, if you haven't already check out the calculators on the site. Do your research in the area you want to pursue and if the numbers work, just jump! If you've been listening to the Pod for a while I'm sure you've heard everyone say the first deal was usually the hardest but taught the most. This was true for mine except that I had the unique experience of having two first deals... meaning we raised enough money to fund two deals in the same city and jumped at it. It was quite the learning experience but thank the Lord they will both still cash flow. You are going to make a mistake or overlook something but if you don't start you'll never succeed.
Realtor · Charlotte, NC · Member since 2017 · 357 posts · 292 votes
7y
Hi @Jonathan Tambellini! I love the strategy of small multifamily properties. 1 roof, 1 foundation, multiple tenants :)
In the Charlotte market, this strategy is VERY challenging, just because the inventory is much more limited than single family/townhouse/condos. I've also found that most of the multifamily properties are in need of a lot of repairs and/or modernizing to maximize rents. I'm not sure if that's something you would be willing/able to take on?
A good real estate agent should be able to steer you away from major issues as long as you are open with them about your situation and goals. Have you reached out to any in the area yet?
Based on my initial research and scouting of the Charlotte market, that has been my impression as well. I'm curious what methods most investors in the area use to successfully source their deals.
The rehab process is probably where I could use the most guidance given I have no background in the industry. However, it's a challenge I am willing to take on under the right circumstances - need to gain the experience eventually! Definitely interested in connecting with local contractors or partnering with others who have greater knowledge regarding that type of work.