All Forum Posts by: Henri Meli

Thanks a lot for all the input so far. This has been great feedback and giving me plenty of things to work on.

@Justin Ericsson. The properties in question look neglected by the current owners. No external lawn maintenance. The buildings haven't been power washed in forever. The properties were built in the 1970s and are brick. If I were to own this place, one of my very first goals would be to improve the external appearance of the place. The same street has plenty of apartment complexes. I would like for this one to stand out against the competition.

@David Monroe. I don't know yet who the tenants are and where they draw their income from. I have requested the actual numbers from the seller. He hasn't returned my request yet.

@Russell Brazil. I have multiple SFR in class A/B. I have no experience in class C. I'm also a little worried about the repair costs. But the one property I'm very interested in has recently had the roof changed and multiple units have had their hvac units upgraded. Those are two expensive items right there.

@Anthony Gayden. I'm not planning to self manage. The current owner is self managing. I'm planning to hire a PM company, but I'm looking to have very tight control around who they bring in as tenants. I would like credit check. Proof of employment, rental history, ... etc...

I installed solar in my house in NC in June of this year. I paid out of pocket $28k.  Because of the state (NC) and federal credits, it will cost me only 37-38% of the total price. I installed 36 panels. Production at peak is about 9.5 kWp.  I don't have trees around the house and my roof is facing south, which is ideal. 

I need to have a 12 months to really compare month to month. But in July my utility bill was $12.  

You can get some of the solar companies to come to your house and run their analysis tools. Plenty of parameters come into play. Tree presence, roof direction, location, ... etc. 

You can also use some google tools to check if it is worth installing solar for you. You should run a search on google. It is called project Sunroof. Check it out. 

For me, it is worth it ... not sure if it will be for you and your scenario. 

I have been trying to invest in multi-family for a while now. I have run analysis on various properties for the last 3-4 months. Every time I found something interesting in a class-A or class-B type areas, it is either overpriced or there are so many bidders jacking up the price ... it is just ridiculous.

Recently, I have started taking class -C properties more seriously. Running the numbers more closely. Doing a more detailed crime-rate analysis,  driving in the areas during the day and at night. Sometimes, even stopping and engaging in conversation with folks who live there just to get a better feel ... etc.

In understand there are plenty of challenges in such areas. But I believe, with the right approach, the right strategy and appropriate implementation and follow through one can make it worthwhile. 

To the more savvy investors out there, based on your personal experience, If you were to list 3 key things that helped your investment thrive in a class-C area, what would those 3 things be? Would you invest there again?

Anyone here would like to recommend me a Property Management in the Greensboro area? I don't have a property at this point, but I would be interested in a few things I have seen and would like to get a feel for it in Greensboro. 

I have been looking at multi family units for the past 1/2 year or so, and the prices have just been mostly out of my league in my targeted counties/zip codes. 

I have now ventured out of those counties and I'm starting to see things more affordable, but the markets there are not very strong, which make me hesitant to pull the trigger.

I recently found 20 units (1970s) selling for around 700k. Rents average about $550 in a class C neighborhood. Occupancy rate is around 90%. Properties have new roofs (about 2 years) and new HAVC units for 50% of the units. 

What do comparable tell you? How are similar properties in the same area performing? What is the $/square foot?

5 Unit properties selling for $115k sounds like a good price. But you need to get the true numbers. This site has a rental property analyzer tool, which you should try to use and get more information about this property.

Congratulations. What part of Raleigh is it located in?

Interesting property. Which part of Greenville is this? Can you provide more information?

 Welcome aboard. This is a fantastic place to learn from and network with fellow investors from all over the country. Tons of resources available to you. I was in Fort Lauderdale over the Labor day week ends to check out the area and look at some properties. Very interesting market, very different from here in NC.

 That's the million dollars question that everyone would like to answer for their market ...

I'm sure if you ask people if the market they are invested in will continue to grow, most will say "of course". I'm invested in the Raleigh market and I have no doubt he will continue to yield good profits for me. If it doesn't, I will just need to adapt. Maybe sell, or lower the rents or use some other real estate strategies (lease options, ... etc) ...Here is what I have learned and maybe it can help you going forward.

-Create a "Ben Braddock" -investment index (which would be the criteria that need to be met, for you to jump into a specific investment/market). Some people value cash flow, others value long term appreciation, most use a combination of those, ... etc. Some like to at the state political leanings (landlord friendly state? town? county?). I use a combination of all. Another factor that's important is demographics. Are your renters more likely to be students? Retail workers? Engineers? Doctors, ... etc.  

-Evaluate each one of your investments every year to see if they still meet your Investment Index.

-Have an exit strategy. How do you get out, if a particular investment doesn't meet you criteria anymore?

Personally, I like the Raleigh market. Some pockets are more promising than others, of course. I have lived here for over 15 years. I drive neighborhoods of interests at least once a month. I read the newspapers and follow the town council meetings to see what decisions are made and how they might impact my investments short or long term..