All Forum Posts by: Pat Lulewicz

Hi Danielle - investor and Realtor in NC. Happy to help you think through your vacant property in NC! Reach out anytime/

That's amazing. 

How did it do as an STR? ADR, Occupancy, all that jazz?

It will be extremely challenging (1/1000 houses on the MLS) to find a $300k house in NC that can rent for $2,500 as a standard Long Term Rental. These rents are generally large 3-bedroom or most likely 4-bedroom homes in the $450k range. As a Medium Term Rental or Short Term Rental, then yes, definitely doable.

Add financing to the equation at 6.5%+ int rates and this will be break even or losing money.

I'm not a big proponent of the negative cash flow game for Y1 and waiting for it to go up in the future. There is so much development going on, its not necessarily a given that rent will go up with it. I've seen a nice stagnation of rent growth here recently (granted it is the winter) over the last 3-4 months in SFH products. BRRR properties have historically been better finds in older, no HOA communities in NE Raleigh, S Raleigh/Garner, and Durham. This also gives you multiple renting strategies - LTR, MTR and STR.

Hey Isiah - come out to BP Meet-up hosted by everyone's favorite - @Shane Lafleur - at Carolina Ale House downtown. Link to the meet-up below. Happy to chat bout that you've got going on and how we can work together. Great place to connect to some do-ers in the market as well.

https://www.biggerpockets.com/...

Cole - you'll struggle to find much small to mid-sized multifamily that cash flows in Y3, let alone Y1, in Raleigh. Trails Corner Apartments in Raleigh, a 57 unit C-class value add just sold for $9.975M ($175k/unit) at a 5.3 cap. Earlier in the year, a B/B-, 24 unit stabilized apartment with some rent increase opportunity on the NE side of Raleigh up Capital Blvd between 440 and 540 sold off-marketfor $4.56M ($200k/unit), presumably around a 4 cap based on my underwriting. Would have probably gone for over $200K on-market. There are opportunities for off-market buys in the 10 and under space especially if you're a cash buyer and can buy a value-add. The other issue is that we've worked off-market with owners to either buy or list their units, and everyone's seen such explosive growth in rent and value, that there's no point to sell...many refinanced during low rates and are now in a position to never have to sell.

Greensboro and the greater Triad market (High Point and Winston Salem, and even Thomasville and Lexington, included) are much more cash-flow markets than the Triangle (Raleigh/Durham). With that being said, the secrets out on the markets and between OOS investors and Private Equity, our Triad prices have shot up in line with Charlotte and the Triangle. Value-add is generally all you'll see come available on-market. We just had a 12-unit, C-class value-add hit the market at $75k/unit, and went under contract in a week, so there's high demand from buyers. Should sell around a 6 cap. Easy cosmetic renovation and rental demand is through the roof for affordable/workforce housing. B-class will trade off-market north of $100k/unit and generally be 24s or 32s (3 or 4 x 8-plexes was the name of the game for developers for a while there). A-class and anything that's a large B-class complex is almost solely off-market to institutional. All of that to say - there's great opportunities here to buy cash-flowing stuff and take it up a level in repositioning.

Happy to send you my analysis of the 12-unit that recently came and left the market. Let me know if you do come down to either market and I'd be happy to show you around.

That's awesome - congrats! That price point is a tough one to shop at these days! Would you be open to sharing your listing URL? DM me and would love to share stats/results on each others' STRs. I've got one in the middle of Wilmi and have been searching for a 2/1 or 3/1 closer to downtown.

I'm a former CPA and now only play one on BP, but....Alex the other thing to consider is which of your personal life expenses can become business expenses if you let others live in your home. Toilet paper, paper towels, sponges, soap. If you have a housekeeper or cleaner, it's for the business. Pressure washing the house is for the benefit of your tenants. Your tenants generally need certain furnishings like TVs and coffee tables for their enjoyment of your living room, right?

Am I understanding currently that before any maint/capex, you're saying you're saving (e.i. making more money) $6k/yr on a $30k investment, so a 20% CoC return with some of the worst interest rates we've seen in decades? Other than an STR, I'd challenge you to find another investment vehicle/real estate investment that provides that, PLUS a roof over your head.

Add that to the macro points from @Kit Serrell and you're talking about some serious dollars a year of direct benefits to your net worth.

@Craig Fillion would love to meet and talk RE.

@Shane Lafleur holds a monthly meet-up at the end of each month that Realtors and Investors attend. Here's January's: Pints & Properties - Raleigh - January Meetup

https://www.biggerpockets.com/...