All Forum Posts by: Hannah Smith

I've heard good things about Greenville and am also curious about learning more about the multi-family inventory there.

I would not recommend this strategy in the Triangle. This was my original thought but due to the inflated prices of MF inventory the core financials do not make sense (at least for my strategy...your personal preference my vary). 

Even if you circumvent the capital requirement and put less than 20% down on the property when you exit the investment the property should meet the 1% rule, you shouldn't overpay, etc. etc. 

If you buy a property with a smaller profit margin because you want to house hack in the Triangle and deviate from investment rules of thumb you may run into trouble.

Ex: if you have a vacancy, you have less cash-flow with which to survive on or if the market tanks and you'd like to lower rents to attract tenants, what happens if you're only cash-flowing $100, $200 after expenses? 

This is just my 2 cents from 2 years of watching MF inventory in the Triangle before moving onto other markets. 

I do plan on puchasing a SFH in Raleigh to live in but I'm painfully aware that it will likely be a lifestyle choice, not an investment.

cc: @Caleb Heimsoth

Thanks for posting and thanks for organizing Josh! I plan to be there @Josh R. as long as work doesn't keep me too late

@Caleb Heimsoth @Account Closed For your reference

@Drew Carpenter Hey Drew! 

Thanks for your detailed feedback. I know a number of investors who have had good success investing in Rocky Mount. I'm interested in doing more research and seeing how the city develops in the near-term and long-term. 

Hey @Tim Sherrod - care to share your sources? Some great info you provided?

I'm especially interested in where you got data on % of people that rent in Rocky Mount vs. other parts of the state

@Dennis M. Definitely! I think the question here is if those cheaper, distressed properties have as much upside in lower-income or more rural areas than in a bigger market where you can force appreciation and there are other market factors at work

@Matthew Baltzell Hey Matthew, Thanks for commenting :) 

I think my strategy, if you will, ideally would be a combination of all three, but the primary focus in my early days would be cash-flow, followed by value-add. 

I am okay with properties that cash-flow well that don't have the other two pieces (appreciation, value-add) but I think I want to research my market more because it seems like a short-sighted game plan not to have at least 2/3 as a contingency plan if you need to shift direction, course-correct, etc. 

@Justin Kane Agree :) Thanks Justin :)

@Justin Kane the properties I am looking at cash-flow $150-$200 NET per door, which for a duplex or triplex isn't insignificant but the ability not to be able to force appreciation/have a bigger upside makes me want to research a bit more.

Does multi-family work best in urban core areas?