All Forum Posts by: Matt McCourry

Victor, 

Thanks for the advice, luckily I read a lot of bigger pockets post before getting the leases signed, that was one of the things that was stressed a lot.  The previous owner of the building had not given the incoming tenants a deadline on turning in their security deposit, and consequently they had one tenant drop out last minute!  Luckily the whole thing didn't fall through and they were able to source another roommate....

I was thinking of turning the unit into a 4 bedroom, not hard to do as I know the builders and other units just like mine have had the same modification.  Got an estimate of 8-10k, does this sound reasonable???

An extra 500$/Month has to make the property appreciate faster.

K pasa multi family investors!

So after diligently searching the Myrtle Beach SC area for a decent deal I finally came across one in the most unlikely of places....

I analyzed and visited 12 properties before finally circling back to a listing my agent had compiled and put at the very bottom of my multi-family housing search.  

This small community about 20 or so duplex's are strictly student housing.  And when I went to Coastal Carolina University, they were party central.  I mean, it was like spring break in Cancun every Tuesday, Thursday, Friday, and Saturday.  WILD!

Why did I choose it? I was riding around one morning after finishing up completing a wholesale on a SFH when I decided to cruise through the area. I came upon a kid sitting on the patio out front and asked him what he paid for the place each month? His replied "bout $500 bucks dude"

Me, "really?  For the whole side?"

College dude, "naaa man, I wish, thats what I pay for my room"

Me (to myself) "holy smokes!"

College dude, "Yaa its sweet bro, its a steal compared to what my other buddies are paying for crappy rooms in Campus Walk (a huge student housing complex).

After hearing this, I had to take a closer look!

So here are the numbers for both sides per year:

Purchase price: $230K

GSR: $35,640

Repairs and Maintenance: $2915

Utilities: $3265 

Taxes: $2220

Insurance: $2500

MGMT Fees (although I am tackling this myself): $2851

Replacement Reserve: $1000 (for replacement of appliances 

NOI: $19,463

Expected Monthly Cash Flow: $450

Of course I wish I would have gotten it for less, but with an average vacancy rate in this small community running around 4% or lower for the past decade, and with comps' based on the same product selling for $256k, $249k, & $272k, I thought it was a good buy.

Please guys let me know what you think!  All comments are welcome!  Here to learn.

Does anybody know when or where the Myrtle Beach RIA meets?

Thanks,

-Matt

Hey fellow REIs,

When and where are the local MB REI meet-ups held?

Thanks,

-Matt

Dick, Great tip man, will certainly look for parents co-signatures.

Colleen, thanks for the valuable feedback, I will certainly be using this as criteria when screening potential tenants.

Based on ya'lls experience, what should be the minimum credit score I should look for?  I am getting mixed answers on this.... 

Biggerpockets community,

I am looking for some feedback on my first single family home deal.

I am looking at a SFH that is within walking distance from the local university here in Myrtle Beach SC. Based on my preliminary analysis of the deal, it looks like a strong prospect that should generate a solid monthly cash-flow. The community is a working class community with a mix of college renters and long time owners. It is surrounded by college apartments, the college itself, and a few local bars.

My question involves the strongest potential tenants that will use the property, college kids.  Looking for advice on how best to screen, what to look for, and how to deal with land lording to the college crowd?  

Anybody have any advice they wish to bestow upon a newbie?

Thanks,

-Matt

Thanks Elizabeth!  I am crunching the numbers on my first investment now, I have came up with some creative financing options for securing the down payment and have spoken to several lenders.  I will not be moving in to the condo but do plan to raise monthly rent price by 200$, that would get it inline with the current market.  My question is this, if I go the conventional financing route will I still have to put down 20% because it is an investment property??  Is there any loophole that will allow me to put down just 10%??  Even 15%????

Hey there Bigger Pockets Bloggers!

I am new to the Real Estate game and I figured a good place to start my research would be Bigger Pockets.  I am currently working and living in Myrtle Beach South Carolina and that is where I would like to start my investment career.  I am excited to learn and make my first deal, so if your in the area look me up!

-Matthew McCourry