All Forum Posts by: Account Closed

The only lending options are private lenders or doing something like a HELOC on your primary and using the funds for this project.

If the soil underneath is unstable, I'd break it up and drop gravel with landscaping timbers.

If you are not going to paint the entire building, I'd definitely go with black awnings. Copper or orange will blend in with the building and won't look great.

Having lived there for 2/5 years, you're in a good spot to carry out your strategy. It's a personal choice, but I'd do the same thing if I was in your shoes.

Another option to consider is doing a cash-out refinance, keep it as a rental, and use those proceeds to BRRRR with. If you're DSCR is >1.25, you'll be in a better spot than if you sold it from a lender's view as they look at DTI heavily.

Hi Alex, welcome to BP. Charlotte is a fantastic place to live and invest. As David said, the market is very competitive and has been for a while.

The Metrolina REIA is a good resource as well as the Sonrisers meetup which is every Friday morning. All of the immediate surrounding submarkets are growing which forces appreciation & rent growth. You can find better cashflow there.

@Jay Pillalamarri

Hi Jay. It sounds like you are looking for accelerated depreciation. You can take it after getting a cost segregation study completed on your property.

There are pros and cons you should research and understand. We just completed 7 of them a few months ago. We averaged 24% year 1 depreciation across the houses.

If you had the same result, you’d need $1M worth of property. Leverage is up to you and doesn’t impact the write offs with accelerated depreciation. The only direct impact it has on taxes is being able to write off the interest paid annually.

@Chris Piette Good responses on insurance and lending above. It sounds like you could use a capital/balance sheet partner who has a long track record in commercial.

8.5% cap based on actuals is quite strong. I would be interested in looking at the deal if you'd like to bring in a partner.

The majority of people are going to move to a new facility as most don't have the space to store their items.

They typical path is to start with your own funds and friends and family. Once you do well, they'll tell their friends and the cycle repeats itself. Once you are large enough, you can look at bringing in larger LPs such as family offices and institutional capital.

A newer method is to create an education platform and use that to grow your LP base.

@Jeremy Marquez

Hey Jeremy, we have a fund in storage. Without knowing the exact situation, it generally produces income and therefore has taxes associated with it. If you’re getting a slice of equity, the depreciation may outweigh the income it produces on a yearly basis but you’ll have to pay it eventually.