All Forum Posts by: John Coleman

@Jonathan Anderson would love to hear more about your approach to Judson. I just don’t see it yet.

@John Underwood I see houses listing post renovation at $200 psf but haven’t seen as many sell for initial listing price as I would have hoped. 81 smythe and a house on Seyle have been very well don’t but are just sitting with small reductions.

There have been some notable new constructions that got 200+ very quickly (one giant house on Otis). My commentary is more that it’s hard to find deals to but, but at the same time it seems harder to sell than I would expect - at least in the neighborhoods I know.

Look in Dunean and Mills Mill.  I still don't buy in Judson but there are some nicer streets.

does it cashflow? New construction duplexes on the same block or SFR?

@Joe Sell congratulations! I guess it bodes well that another Gallon Street house just hit the market for 65k pre renovation. I would look to get the work done through the fall and winter when labor may be easier to come by. If you wait until spring/summer of 2019 when elements west is complete you will end up listing the house in the fall/winter which is the worst time to be selling. I’m familiar with Gallon street and have thought about blowing out the back of the houses to add a bedroom and a bathroom. The houses sit high on cinderblock foundations and the roofline wouldn’t have to change all that much. Lots are deep aswell . What ARV are you going for? What’s your renovation plan?

Bottom line: no one buys a 4-5 cap with their own money. 

It’s either a banks money (leverage) -or- investor’s money where sponsor/buyer/‘managers’ are gettting a carry/performance fee/Earn in and can’t afford not to invest.  Hard to make a career ‘waiting out’ a cycle.  Shooters got to shoot. 

HNW individuals don’t buy 4 caps - if anything managers buy them on their behalf telling a story and clip fees along the way. If they actually want 4% ‘low risk’ they’d buy munis. Chances are they got HNW by buying 12 caps and riding them to a 4 cap over 20 years  

Firing this thread back up after a year.  A lot has happened in Greenville.  Dunean is on fire with flipped houses approaching 200k.  Rents on slightly improved houses are easily clearing $1,000.  Mills Mill is coming up as well.  The cotton Mill on green Ave appears to be under construction after sitting vacant for the past 10 years.  I believe elements west is being developed by the same group behind GatherGVL.  Across Green Ave in city limits and Augusta Circle schools houses that sold for 50k-75k are being renovated and sold for 300k.  Ladson has a ton of new construction Etc.  Anyone else involved? Any other opinions on the rate of development.  Its not all sunshine and rainbows as it is still very much a checkerboard of new and old (and trouble).  

I think the area would be served well by annexing into the city.  Not sure of the likelihood of that coming together.

It does appear that major development in the city is favoring the West End.  County square is in this vicinity and I would argue with the number of apartments on South Main about to come online, the city center is being pulled west of reedy river.  The increased population should support service business, bars and restaurants.  I would have to assume that the single family houses in Greater Sullivan, mills mill, and Dunean would become increasingly valuable.  Is there a counter argument to this happening?  What are the limiting factors?

Would love to hear more of your thoughts on the ‘west side’ Where are you looking? Why?

not sure the ins and outs (i.e. don't do this blind) but I have heard of people driving around through the mill villages and looking for single family houses that have 2 front doors.  if you aren't familiar with mill houses or Greenville this sounds bizarre but they are all over.  the logic is you could do a real house hack and convert the house back into a duplex.  if rents are 600-700 for a 2 bedroom one bath, you could make it a 1 bed, 1 bath on each side and get 500 each side.  there are a bunch around Brandon mill which is the county,  I dont know about what happens with zoning etc.

Thoughts?

other than that there really aren't any mid sized (4-12 unit) multis in Greenville. they just don't exist.

Check my prior posts, I'm totally biased to my area but if I were fresh out of college and landed a W2 job I'd get a mortgage and live in rehab in mills mill/Dunean/Greater Sullivan. Then rent it out for 1k a month and do it again. Close to downtown and it's the only area where houses are selling for 40k and 150k+ across the street from each other. (Be the guy buying at 40 and selling at 150. Not the other way around.)

Great question and I have been thinking about the same thing.  What neighborhoods are you considering?  What is your longer term plan?  I have been trying to justify new construction/modular houses from a cash flow perspective and its tight.  I really don't know when the owner occupant home buyer is going to come back to these neighborhoods.  Its also going to be a bit of a chicken or egg situation with banks appraising the houses for mortgages.  It would be possible to build and move inventory to turn key buyers but I view that strategy with skepticism.