All Forum Posts by: Cody L.

I bid on them but as a solo investor, the leverage from lenders just isn't there for me to be able to take these down w/o partners. The existing lender wasn't willing to hold any of the debt.

I considered offering to just take them at their debt value but it was too high. They were not willing to take a haircut and hold the paper.

1 Vote

A friend of mine who sold out a few years ago had about $600k/month in free cash flow (if you add back the $ of debt payments that were principle reduction it might be another $100k).

His goal was to get to $1m/month of free cash flow but decided to hang it up.

I know several people in the $100k+/month NOI range. Once you start building a large portfolio of properties, it really does start to feed on itself and grow quickly.

0 Votes

New York City, New York

Quote from @Dimitra Manou:

Quote from @Cody L.:

Quote from @Dimitra Manou:

Quote from @Cody L.:

If you're trying to sell these, maybe provide a bit more info? Link to financials, pictures, addresses, etc?

This is like "I have a car for sale. It has 4 tires. $20k"

Also, with few exceptions, I don't think this site is where you're going to find a buyer for a $50m deal.

Thank you Cody for your comment. I understand but I can't give more information here. If someone is interested, he/she can DM me. I have all the financials in excel file. I can't give further information. If you would like to know the address, you should sign an NDA and if you know the address then you can see the pictures online. This is an off-market deal. And which site do you think is better? Do you know any other sites?

Loopnet, HAR, Costar, Crexi, Brevitas, etc.

Thanks for your respond Cody but it's an off-market deal and I want to sell it off-market.

You don't have a listing agreement. Gotcha. I hope you're able to find a buyer.

0 Votes

Quote from @Zorya Belanger:

Quote from @Cody L.:

Quote from @Zorya Belanger:

"Texas buying spree during a pandemic" - unfortunately many got up in the hype and bought too much in a hot market, assumed interest rates would stay low, and were highly over-leveraged - up to 93% - yikes! I saw that this operator only started buying in 2017 and would have only experienced good times.

As Warren Buffett said be “fearful when others are greedy, and greedy when others are fearful.”

We haven't found a deal in over a year, after underwriting 100's of deals, as we stuck to our conservative ways. It was frustrating, but the patience paid off, and finally found a rare deal in Houston on 144-units!

144 unit IN Houston? If so, that's crazy as I have a 144 unit in Houston.

It's just outside Houston, in Pasadena.

Nuts, that's literally where mine is. I don't want to give the address as I try to keep my profile here and my company business somewhat separated. But mine is in this circled area.

1 Vote

Phoenix, Arizona

Quote from @Zorya Belanger:

144 unit IN Houston? If so, that's crazy as I have a 144 unit in Houston.

0 Votes

Phoenix, Arizona

Quote from @Account Closed:

Quote from @Elijah Brown:

Thanks @Cole Maurer. Not interested in the SFH portfolio, but thank you for the offer! We're focused on multifamily buildings right now and will be more active on acquisitions in the second half of the year. For now, we are arranging a few fund-of-funds and Co-GP opportunities.

Houston Apartment Owner Loses 3,200 Units to Foreclosure as Multifamily Feels the Heat

Building values are falling, interest rates are rising and rent growth is slowing

https://www.wsj.com/articles/h...

An apartment-building investor lost four Houston complexes to foreclosure last week, the latest sign that surging interest rates are beginning to upend the multitrillion-dollar rental-housing market.

Applesway Investment Group borrowed nearly $230 million to buy the buildings with more than 3,200 units as part of a Texas buying spree during the pandemic. Arbor Realty Trust, a publicly traded mortgage company, foreclosed on the properties after Applesway defaulted on the loans, according to public documents filed in Harris County, Texas.

I think that's more a case of too many dummies, with too much money, chasing any yield they could, bid up properties to way too high of a level. Stuff in Houston was doubling with little rent movement.

They also borrowed floating rate in order to over pay.

So the market is giving them the kick in the balls you'd suspect.

If you bought right, were smart about your loans, you're fine.

2 Votes

Phoenix, Arizona

Quote from @Dimitra Manou:

Quote from @Cody L.:

Loopnet, HAR, Costar, Crexi, Brevitas, etc.

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Quote from @Michael Brombacher:

I have a furnished 2BR in East End 77023 and 16 furnished one bedroom apartment units in 77021 on the north side of OST. Minimum 6 apartments (prefer to lease all 16 master lease though). Feel free to PM, will need first month rent and one month deposit.

Not to hijack Cody's posts ;-) but I also can offer 1-4 two bedroom units in 77004, recently remodeled, new appliances, near UofH in case anyone is interested

LOL hijack away. I'm not really using this site to get occupancy.

One of my goals in 2023 is to hire someone to lead our STR efforts. They can decide which units would be good for STR and run that business segment for us. If a property is becoming difficult to lease LTR, they can expand the # of STR, and vice versa. Or they could even expand the # of STR in a building while we have occupancy issues and move furnishings out as they're leased. Or offer 2-6 month type rentals that are furnished, etc.

These more specialized positions are generally harder to fill

(Off topic: Why doesn't Chrome's spell check work in the bp text box? This is the only site I've used that doesn't seem to allow Chrome spell check to work.

1 Vote

Houston, Texas

Hey Cody, Ive seen you reply to a few of the Airbnb post and boy I've learned some new things from you! Before coming here, I found a couple airbnb "friendly" apartments in Houston that allows for part time rental. I was super excited until I continued to research and noticed it only allows residents to airbnb a unit up to 90 days. And guess what I did... emailed the apartment leasing office about negotiating terms or possibility obtaining a "corporate lease" I know... I know.. Then I stumbled upon this post after doing more research and read your response "They always say the same thing -- 'do you do corporate rentals?' " Yikes, that was me! My issue is that I'm a travel nurse so Id be gone at least 8 months or more out the year which would surpass the cap at 90 days by a whole lot. Was hoping to rent out my place the legal and correct way, but im finding it hard to do as most apartments are advertising Airbnb but only part time. Any advice? I understand your company don't lease just one unit to one individual. Do you believe there are apartments that still allow renters to airbnb or are larger scale companies taking over? Thanks for any insight!

Shantel

We do single units all the time. My comment about multiple units is if someone wants to work out a deal on a property of ours that we currently don't allow STR. For example, if I have a 6 unit building where we don't allow STR, I don't want to lease a single unit there to someone that's going to do STR. It's not fair to the long term tenants. However, if a company wanted to work out a deal to take on the whole building? I'd do it. I also have a 32 unit in Montrose that has 2x 10 unit buildings facing eachother with a courtyard in-between and then a 12 unit building that faces into the street. We've had people wanting to STR single units and have said no. But we had someone want to take on the full 12 units facing into the street (bonus for them is the guests could come right from a main street (W. Alabama) and park right in front of their unit)

But we have plenty of buildings that are already mostly STR (ran by 1 or more people). In those buildings, if someone just wants to lease one unit for STR, we allow it. I gave a few examples. The super short summary: Patio homes in galleria area, studio apartments downtown, 1 bedroom units in Montrose, a triplex (SFH + studio + 1 bed) in Montrose.

0 Votes

Houston, Texas

There isn't a 'catch'. If the numbers don't work, the numbers don't work. Don't try to force it.

IMO you needed '1% rule' to cash flow before. But now? If you're not buying at least 1% rule, you're going to be negative on cash flow (I don't count putting down 50% then being able to cash flow as really cash flowing).

Think about that $250k home you're looking at. If it leased for $2,500/month you'd be fine.

I was buying 1% properties when rates were in the 3's and I'm getting 1%+ now to make up for higher interest. The last single family homes I bought were a bunch in the galleria area. I paid $245k/each and they lease for about $2,300/month. Not quite 1% but close. Last week I put a large multifamily under contract for $53k/door that brings in about $725/month in rents. A year ago that would have been $80k-$90k/door.

2 Votes

Houston, Texas

All Forum Posts by: Cody L.

Cody L. has started 35 posts and replied 3663 times.

Post: In Over Their Heads?

Post: What's the largest total NOI you've heard for any investor?

Post: 10 Multi families in Houston, TX

Post: Why I'm Buying $100M of Apartments

Post: Why I'm Buying $100M of Apartments

Post: Why I'm Buying $100M of Apartments

Building values are falling, interest rates are rising and rent growth is slowing

Post: 10 Multi families in Houston, TX

Post: Property management that allow Airbnb in Houston

Post: Property management that allow Airbnb in Houston

Post: Cash flow with rising interest rates