All Forum Posts by: John Blanton

Hey @Tom Keller That amount is going to be tough to squeeze out much cash flow here in Raleigh unless you are getting into a partnership deal. If you are open to a little further out that amount could find you a nice SFR in Burlington/ Graham area West of the Triangle or down in Fayetteville. There is plenty of supply in Fayetteville for SFRs all in cost around $100-110k and rent for $1000/mo+. If you are looking for cash flow above all else I would recommend looking in another nearby market. The Triangle has turned into a much more appreciation market vs cash flow. Hope that helps!

Thanks @Eamonn McElroy great points!! Not looking for lowest cost provider by any means, but also want to make sure getting commensurate value. I think the issue was I am not asking the right question to the CPA, I need to be clearer with the terms of the partnership and complexities to determine what a price may be. Appreciate the guidance!

My team is currently working on a project for a smaller (20 units) syndication deal. We were able to secure off market for a competitive price, but there is a good amount of capex work ($80k) needed at onset. After the $80k outlay, most of the major mechanicals will be good for the next 7-10 years. So if we sell at a premium with the market being so strong it would be turnkey to the new owner, but if we refi and hold we won't have to do any major capex repairs ourselves for that same timeframe. Financing terms are good initially with owner financing 5 year balloon, but with interest rates being so low considering refi'ing out in year 2 to lock in 7 year fixed at a low rate. Any advice suggestions appreciated!

@Jack Yen

I am working on getting quotes from a CPA for preparing K1s for a small partnership deal with less than 10 investors. 3 GPs and 7 LPs. I have been quoted $2500 by a local CPA, but some people have told me that seems high. Another colleague said $1k for K1s for 2 investors. Hoping economies of scale can help alleviate the cost a bit, so $2500 for 10 doesn't seem bad. Any assistance is appreciated!

Vikram,

It sounds like you have done quite a bit of research and your numbers sound very consistent with what I am seeing in the Durham market as well. It has turned much more into an appreciation market over a cashflow market. Demand for both affordable housing and investment properties has pushed property values much further past rental rate increases. 

If you loosened your criteria a bit (older vintage, lesser price point, less desirable part of town) you could likely be able to cash flow a bit more per month but from what I have seen not by a whole lot. 

The main way investors are buying rentals that can actually cashflow is they are rehabbing older homes that need a lot of work in which retail buyers would not be in competition. 

Hope that helps!

Hey Jack, I would try NC Farm Bureau. They were about a third the cost of my previous company.

The Triangle market is getting quite competitive so in certain scenarios I think submitting an offer without seeing the property increases your odds of getting under contract. Knowing comps and estimating rehab costs for your projected return targets is critical. If your offer is accepted you can take a deeper dive to validate your assumptions during due diligence. Many wholesalers/ sellers are requiring high non- refundable EMD to be willing to accept your offer which adds to the risk of offering without seeing, but again with investors flocking to the triangle sometimes it's a risk you have to take.

Does anyone have any investor friendly plumber recommendations in the Durham area? 

Thanks!

Does anyone have any foundation repair companies they would recommend? Needing a substantial amount of joist work on an investment property and subflooring.

Thanks!

Hey @Daniel Norber,

@Tiffany Alexy manages my units in the Triangle and she does a great job. I am right there with you in regards to fees, but at the end of the day what really matters is how much you are making from those rentals all in. She does an outstanding job keeping units rented and minimizes tenant turnover. All of her tools are online for easy viewing. I would recommend speaking with her team.

-John