All Forum Posts by: Alex Franks
Alex Franks has started 2 posts and replied 1311 times.
Post: Are charlottes SFH prices rising too high for entry rent and hold
- Rock Hill, SC
- Posts 1,398
- Votes 597
Originally posted by @Samuel Collier:
@Alex Franks Greensboro is still very much affordable and you can buy dozens of properties right now that will cash flow in the best school district in the city
@Samuel Collier my good friend owns 3 apartment complexes in that area. So been studying the area for last 2 years. I try to focus on areas 1 hr radius around Charlotte. Yet I am always looking for folk on the ground in areas that are a bit outside of my circle.
Going to send you a private message and maybe lunch or dinner some time my treat and we can drive around your area one day. There is a turnkey market starving for good product out that there.
Sincerely
Alex
Post: Housing Crash in 2018-2019
- Rock Hill, SC
- Posts 1,398
- Votes 597
Originally posted by @Jay Hinrichs:
Originally posted by @Marc Winter:
Allow me to opine on how to stay 'market crash proof': buy great deals that are under current market value (with terms from seller when possible), and if you purchase money mortgage or re-fi, don't go over 60% LTV. Fixed rate 15-year mortgages only--time flies when you're havin fun and it is really sweet when those mortgages get paid off.
Rent must cover ALL expenses, PITI, maintenance reserve, vacancy reserve, etc. Keep a close eye on your properties and keep them well maintained. To me, cash flow from rentals during the first few years is not for spending, it's for reinvesting, either in improvements to the 'generating' property, or in search of another.
If you need cash, do some buy/fix/sell. If the goal is to eventually kick back and have a huge monthly income, get some of those houses paid off, raise rents, have a good manager, and enjoy life.
No one can 'time' the market accurately, except in hindsight. And remember, appreciation of asset should not be the driving force for buying the rental--rather if and when it happens, think of it as a gift.
Lastly, real estate, like all aspects of the economy, has its ups and downs. Adjust if you must, but on rent/hold, think very long term. I am thankful every day for real estate being so good to me and mine.
Good Luck!
excellent post I would add if your houses are stable and on 15 year mortgages you take the extra 100 or 200 a month and continue to accelerate paydown.. Unless of course your in a market were your buying sub 10 or 20k homes and you have enough cash flow to buy a new one every 3 to 6 months.. the real wealth in real estate is free and clear and no debt.. I mean when you think about it.. you pay off a home and your cash flow doubles with out having to go into more debt more maintenance more risk etc etc.. this fixation with max debt got have a 100 doors and 200 a month so I can get 20k a month not sure how realistic that is.. and for darn sure if you have a mini melt down that can lead to vacancy and all of a sudden if you don't have a good job your not making any cash flow or are negative.
this is who all those syndicators lost so many apartments in 07 to 2011 they went vacant past the break even point could not feed them could not maintain them and they folded..
@Jay Hinrichs I will take my goal of 25 free and clear in next 3 years and just sit back and become even picker on what we buy here in good ole SC, NC
Post: Are charlottes SFH prices rising too high for entry rent and hold
- Rock Hill, SC
- Posts 1,398
- Votes 597
Originally posted by @Samuel Collier:
taxes and insurance are included in that $921. I wont be in the negative but I appreciate the concern. If I ever need advice for Gastonia I will let you know but I know Greensboro pretty well ;)
My young friend I flipped over 800 units in the Carolinas but I'm sure I can learn a lot from you. Been buying since 2000. Yet always open to being educated by folks who truly know more than myself.
Sincerely
Alex
Post: Are charlottes SFH prices rising too high for entry rent and hold
- Rock Hill, SC
- Posts 1,398
- Votes 597
Originally posted by @Samuel Collier:
@Alex Franks sure, the one I just bought is a good example. Purchase price of 140k. 3 bedroom 2 bath, mortgage payment is $921 and I'm meeting with a property manager today but we estimate it will rent somewhere in the range of $1200-$1300. It has an unfinished basement that has room for at least 2 bedrooms so my long term goal is to finish that as well. It's in Grimsley school district which is one of the most desirable locations, otherwise I probably could have gotten it for 100-110k.
Wow not good my friend. Taxes, insurance, maintenance, vacancy, reserve fund? you will be in the negative each month. Again I am not trying to be an *** but that's not a good deal. I am seeing someone lose money not make money. What is the ARV for property and immediate area?
Post: Are charlottes SFH prices rising too high for entry rent and hold
- Rock Hill, SC
- Posts 1,398
- Votes 597
Originally posted by @Samuel Collier:
@Alex Franks Greensboro is still very much affordable and you can buy dozens of properties right now that will cash flow in the best school district in the city
@Samuel Collier, I am sure it is. I love smaller secondary markets. I am closing on 16 unit in small NC town close to me. just past Gastonia NC market. Yet the owners have 500 sfr and 9 apartment building. Which I have offers on 29, 39, and 8 unit. So always nice to find places like this. Especially if you are a buy and hold guy. Why don't you share a few deals here with folks? So we can all chime in and look at numbers. As to why they are good or not good deals. For your market as I think folks here love numbers and to be analytical.
Post: Are charlottes SFH prices rising too high for entry rent and hold
- Rock Hill, SC
- Posts 1,398
- Votes 597
Originally posted by @Samuel Collier:
Greensboro is the best kept secret in North Carolina, in my opinion. Third largest city in NC but nowhere near the problems that Raleigh and Charlotte have (traffic, higher cost of living ,etc.) We have over 5 colleges, 20 highschools, a minor league baseball team, a D-league basketball team, a major Coliseum complex that holds the ACC tournament as well as all your other major recording artists. I see a lot of artsy mom and pop restaurants popping up which is a good sign. But more importantly, there are multiple very large apartment complexes being built both downtown and at other major shopping areas. This is an indication that there is still growth potential (Or at least there are enough builders who think so.) My prediction is that over the next decade, as Raleigh and Charlotte become overpriced and overcrowded, Greensboro will be next to be hit with the population wave.
@Samuel Collier my friend no such thing as a hidden market in the Carolinas. More like a market that has not been ransacked as a secondary city. Which again is already happening in many small markets. Really depends on the large markets around those smaller markets. To see what the actual potential for growth will be. As for overpriced my friend the whole market in almost every state is overpriced.
Post: Are charlottes SFH prices rising too high for entry rent and hold
- Rock Hill, SC
- Posts 1,398
- Votes 597
Originally posted by @Nicolle Mulvey:
Originally posted by @Alex Franks:
Originally posted by @Nicolle Mulvey:
I’m a Realtor in the Charlotte area and my firm works with a lot of investors. To find a good deal now you are better off outside of Charlotte. Kannapolis is another great area. Unlike other opinions, we do know what we are talking about and understand what cash flow means.
@Nicolle Mulvey very true on Kannapolis. Actually all secondary markets in around Charlotte NC and Greenville SC. We have been following the 85 corridor secondary markets identifying small multifamily. To just grab a footprint in each market. As we watch slowly what is happening around us. Cash flow is something we all understand I believe. Yet what is being sold to local and out of state folks are really pushing the numbers. To create a false sense of cash flow. Just my two cents but what do I know. Yet I would ask you as realtor do you own rentals or just sell rentals? Sometimes folks who don't own but just sell see numbers bit different. Not saying you do or don't just my simple take. For years I focused on working with agents who actually own rentals and understand that side bit more.
Sincerely
Alex
@Alex Franks yes the secondary markets are much better. I have even shown that to my buyers for their primary residences. I agree that prices are very high right now, no arguing that. I don’t own any rentals right now, though I do plan on owning a few. I can see your point. There is a difference between just selling and actually owning, and I do agree not all agents understand the difference. Having the accounting background I do helps me understand investing easier. One of the main reasons I chose my brokerage is how much they work with investors.
@Nicolle Mulvey yes second markets are great. Closing a 16 unit today in Shelby NC. As for knowing the numbers one of the most important things. Yet owning and dealing the tenants is a whole different ballgame.
That is awesome on the firm you work. Feel free to ask away I know a little bit of how this real estate stuff works.
Alex
Post: Fellow NYC-ers. Where do you invest?
- Rock Hill, SC
- Posts 1,398
- Votes 597
Been buying, selling, flipping, holding, rehabbing for many years in multiple southern states. Please go back and read some of my older posts. As I broke down the Charlotte market per zipcodes Right now I do what the market allows and tells me makes sense. Closing on 16 unit in Shelby NC today actually at 2 pm. Really diversify with what I do. I let the market tell me what makes sense. I lend capital to local builders, buy small multifamily, purchase, and SFR only in package deals. Otherwise, cant makes the numbers work. Purchasing cell tower leases from rooftop building only for an NY fund.
Side note I am from Long Island. My grandpa was NY police officer for 37 years. My pops worked on wall street in Manhattan for 33 years. My mother and two older brothers all born in Staten Island. My partners, and capital lenders. Most are from NY / NJ areas. After the snow leaves, I usually make it to NY once a month. ( Has to be warm)
Ask away if I can help answer any questions.
Post: Fellow NYC-ers. Where do you invest?
- Rock Hill, SC
- Posts 1,398
- Votes 597
Originally posted by @Milan Obradovic:
hey Guys,
Being in Brooklyn, I am always looking out for potential multi family deals close by but out of NYC just because of my budget. A few places I have my eye on are Garfield, Trenton, Yardley, East Stroudsburg, Easton, Allentown, even Mount Vernon. I am wondering where some of you locals began investing if you did out of the city and why? Also how has it been managing something farther away. Looking forward to reading opinions and stories!
@Milan Obradovic I used to be the turnkey business2009-2013.Buying and selling in Charlotte NC, Rock Hill SC, Atlanta. Most of the buyers were from NY/ NJ markets as price points here in the Carolinas much more attractive. Someone above is correct NC and SC very attractive states for ease of management. Which is easier said that evictions are bit easier here than most states. Even now with multifamily deals. My partners are from NY and NJ on most deals. Again it really has to do with numbers, entry point, cost per unit. We do some building and inside joke is most of the folks buying in one area. I call it little NY as most of the folks are retired moving down. Yet the buying out of state is a whole different animal. Ask away if I can ever answer any questions. From Indy, Ohio, Tennessee, NC, SC, Georgia, and Florida seem to all good markets for folks from Northeast.
Sincerely
Alex
Post: Good markets for reasonable multi-family deals?
- Rock Hill, SC
- Posts 1,398
- Votes 597
Originally posted by @Tom Stine:
What are good markets right now for finding multi-family deals? Colorado seems to be very challenging.
Tom
@Tom Stine most markets are hard to find deals as prices not making sense in most places. I'm in Charlotte, and most of what is sent to me is way overpriced and not making sense. Yet folks still buying.
So go figure