All Forum Posts by: John Coleman

I was going to go to the tax sale yesterday in Greenville but wasn't able to make it. Are you saying bidders were paying $90,000 for a $1,000 tax lean? If that's the case I'm happy I didn't show up. How did vacant land trade?

I own 21 houses there.  Bought everything I could under $30k over the past 2 years.  Finishing 104 Beacon St in the next week or two.  Ill get some pics together.  I have 318 Tremont listed right now.  I dont think greater Sullivan and Dunean were bad neighborhoods, i think the rental properties taht made up 30% of the housing stock were managed by ill intentioned owners.  I have been over investing in houses in the area and I am getting great tenants and all the old time neighbors are kind and appreciative.  It was the transient rental set paying $400 cash that brought the area down.

Below is 318 Tremont- its listed for rent on zillow if you want to see other pics.

I also have a house on Otis that is a little bit more yuppieville than Beacon/Tremont.  There is a pretty big difference between Augusta Circle Elementary and Hollis Academy but the houses are across the street from each other.  I expect all the renovated houses to be worth 100k+ in the next few years and you can get a high teens cashflow before factoring in leverage while waiting.

Ill get more info up on here later but I'm all for it and am happy to share everything I got.  Check out my prior posts too.  I also live in NYC if you want to grab a coffee.

ps: Bid 28k, and factor in adding an additional bath.

@Brandon Redfern Are you invested downtown? If so, what areas?  For properties in Greer Simpsonville, my reservation is most are priced for owner occupied buyers or they are vinyl sided boxes that cashflow $100 a month (ie appreciation play).  Are you seeing high single digit/low teen returns? If so in what areas and what kind of houses?

Go GSP.  1 hour away is nothing.  Still may want a local handy man or someone who is local.  maybe not a manager but someone who can swing by and take care of things and keep an eye on things.  

I like Dunean.  Granted, ppl say its rough but that's on its way out.  

Check zillow/historical price history 60 smythe ave, 40 blake, 41 Blake (reno sold in 2 days), 17 wallace, 31 seyle.  Its happening.

G'Ville: Todays cover page of the local paper.

http://www.greenvilleonline.com/story/money/2016/05/23/greenville-real-estate-moving-crazy-pace/84622146/

Population growth + Reurbanization is insane.

30k down and traditional financing on a 100k house or all cash and $650 in rent a month both work and are both around.  If you 'drive for dollars' you can get either.

@Mario Brown  San Souci is an interesting play and rent over $1,000 is key.  I believe that at the level you are in the clear and working with a quality, salaried renter class tenant.  I believe Mills Mill is knocking on that door but admittedly isn't there yet.  There is a very visible distinction once you cross the tracks over city lines driving down Green Ave.  One question that I ponder is how sustainable is that?  San Souci is 3-3.5 miles to town to the North - that is a car ride, not a walk and probably not a bike (but maybe).  'Brooklyn' style growth is pushing west ie coffee shops, art galleries, creatives Upstate Craft Beer Co etc.  Is that push strong enough to deal with eye sores and 'bad apples' over a few years?  I hope so. While i don't believe there is much of a flip market in Mills Mill I think its the last area with that proximity (1mile) where you can buy-renovate-rent for well under 100k.  I think flips in Dunean could possibly work.

Simply put: Can Greenville's city population continue to grow and develop at this rate over the next 3 years and not totally gentrify every patch of dirt and structure within a 1 mile radius of the Ball park?  Genuine question.  Clearly this is my play but i learn most from those who disagree.  Let me know your thoughts.

Yes. Friends and family $. In 18m to 2 yrs we may finance some money out for more properties or to find new construction. A few of our deals in 2014 came with buildable lots next door/behind the properties. Gville is a super cool town that is booming in all the right ways. It's millennial nirvana from a city planning perspective and there are jobs. I expect big things. Great piece here: http://archive.uli.org/spring2016/reachingfuture/ReachingFuture-Navarro.pdf

I haven't tried to flip them to retail.  I think most of the market under $125k is investors.  When you think about a retail buyer, those that could afford/qualify for a mortgage on a $125k house of this nature are probably more inclined to rent for another year or two and step up to a $140k-$200k house where you are getting stabilized neighborhood, not fringe and much more house.  Again havent tested it but my inclination is that I'm in these properties (with nice cashflow) until the neighborhood really takes off or I'm exiting to an investor at a cap rate that is attractive to them which is prop high single digits ie $65k-80k.  It all works and a year or two after the 8,000 multi family units downtown/west end that are currently under construction come on line there will be tremendous demand for the single family houses .5-1 mile away.  Its happening in a big way it just needs to play out.  I believe these houses are a 3-4 year double on a total return basis.

Most of the stuff that I own that sounds similar (3/1, purchase <$30k, + $20k rehab) rents for ~$850.  It seems to me that I never get the value out of that third bedroom with only one bath.  I have one house I'm converting from a 3/1 into a 2/2 with a master.  Haven't listed it yet but hoping to get $1,225.  The only thing that makes my numbers work is no debt service.  Augusta Road area will hopefully provide great long term appreciation but I'm not seeing it translate into rents....yet.

Also, I have had a lot more success with homes with washer/dryer & HVAC which may require stepping up to 200amp service ie more money.  Just stuff to think about.

I was walking around this weekend.  Looks like the 8 unit multi family on guess/otis is being renovated.  There are also two new construction homes going up on Otis.  9 Deering appears to be a false positive.  Looks like it was partially renovated and now they are in trouble.  I see solid investment in a house on beacon, I think 104.  289 Werts sold on 8/7/15 for 87k.  Also it looks like 28 Wallace in Dunean was listed and sold for $163,500 within one weekend.  Granted it is very very well done and has a second floor but its still Dunean.  That has to be a historical high for Dunean.  New construction on River Valley lane is all going for $250k+.  Massive house being renovated on the corner of Duke and Hale with a second floor.  I think there is progress everyday and the neighborhood is destined to turn.  It is too close to too much.  West end is experiencing massive multi family infill.  That is going to support a ton of small business, retail, and restaurant/bars. (2k new units equal ~3k more people, average restaurant/bar can serve 200 people at a time if that)  These neighborhoods right outside of that area will first turn into the places young hourly wage workers turn to live close to work at reasonable rents and short commutes.  The next class of tenants will be the creatives and wealthier millennials who want to be close to the action for entertainment but cant afford the $1,700 studios being offered in the large multis.  Next wave will be young families who were in the multis and love walking to west end coffee roasters and the ball park but are starting a family and want a yard, dog, and grill.  Maybe it doesn't happen, maybe slumlords hold the neighborhood back, but if Bushwick & Bed Stuy NY and Skid row/The Mission in SF turned hot, I think west end could pull it off at 1/10 the scale ie most renovated houses being worth close to 100k in the next 2/3 years and rents at or above 1k a month, conservatively.  Also, for another post- looks whats going on down Pendelton with Mill Village Market and the co-work space Textile Hall.  Text book.