All Forum Posts by: Dan Rowley

@Annamalai Karthik  I can tell you that with the recent price escalations, you will be hard-pressed to find any decent property that will even yield a break-even (zero) cash flow in Cary/Apex area (leveraged with 20% down).  Obviously, you can spend some time looking but if you find any then plse let me know ;)

@Ayman Omara   no real issues during the pandemic for the 3 deals I'm in.  Mostly they buy solid B class apartments and so less covid impacts than class C.

A 3% fee for acquisition is quite high unless it's a very small $ acquisition.  So, I'd shop around for other operators and deals to at least get a point of comparison.

I've invested in a deal with them and they are legitimate.  So far the results/returns have been in line with their projections.

I see a lot of negative comments about townhomes in HOA, but one should also consider the positives. HOA fees typically cover all common area maintenance and landscaping and often the roof and siding (exterior) of the units also. So, you are effectively paying maintenance costs for these as you go but without the HOA 'reserve funds' it's true you may not pay anything for years and then 'bam' one day in the future your roof needs replaced and you have to fork over big $s in one lump sum. Another pro = within an HOA community there may be amenities that will be attractive to your renters (pools, small park, tennis court, etc.) and this can raise your rental rates above what they'd be without them. Another pro = the HOA rules/restrictions tend to ensure that the community is kept more tidy and desirable - this can also benefit you and result in higher rents = think: no tall weeds and trash strewn about or a junky RV or maybe an old car up on blocks parked in your neighbor's driveway.

cash flowing train has pretty much left the station.  Only if you were to buy something very distressed (and probably a D area) and put capex into it maybe you could cash flow but even that is debatable.

pass on this one!

@Anks Desai  it is obviously an investment philosophy decision on whether you want to buy a property that has negative cash flow.  It violates one on my key principals, but again it's a personal choice you can make.  The area is booming and so the demand is there for sure but it may take a few years for rents to catch up to the accelerating price levels.  One path you might explore is to find a multifamily syndication in the particular area, and invest $s that way because there is economies of scale in that model, and it's entirely passive (no work involved on your part) and the projected returns would be positive.

@Ava Miller

no time soon. It’s about to get next level crazy with Apples announcement

@Colton Florentz  I think it's a very individual decision, but if any of us had a crystal ball we'd make a lot of profit.  I will just say these are kind of uncharted territories with the level of government intervention and involvement in the US economy and there is not really a historical precedent for what we're seeing.  The government stimulus has the effect of interfering with normal business cycles and it's basically not allowing for market correction or reset.