All Forum Posts by: Peter Faulkner

Hey Folks,

I'm evaluating whether now is a good time to sell some multi-family properties I own in Winston-Salem, N.C. If lenders are offering a 25 year AM, then as I've underwritten it, the buyer would get a 10% CoC return.

Has anyone spoken to lenders recently? I can tomorrow, but figured since it's Sunday, I'd ask here to see if I could get a faster response.

Nice, @Shiloh Lundahl. In Winston, my partners and I have 3 multi-family properties, for a total of 14 apartments in Downtown 27101. In Greensboro, I focus on 27403. There we have 5 doors. 1 duplex and 3 SFR.

Hi @Shiloh Lundahl - what zip code are the properties you’ve purchased? Did you buy them through wholesalers?

Hi@Account Closed & @Greg Fitch - apologies for the delay. I'm not here frequently.

To be honest, we're in the middle of some challenges with our Winston-Salem properties. I won't go into great detail here because we've engaged legal resources and I don't want to make the issues too public. That said, we are most definitely going to be paid for those challenges. Additionally, the challenges aren't a result of the market or anything... I'm happy to have done the deal. Just have to take the bad with the good sometimes!

The Greensboro properties are doing very well, though. Bought them at a discount, have good numbers, low vacancy, potential to appreciate - happy with those.

Peter

Was going through some old threads about the triad last night and came across this one. Saw this link today and figured I'd share. We bought 14 doors in Winston-Salem 2 years ago. Looks like next year could be a good year for us?

Top Housing Markets for 2020

Looks like median rents for a 3 bedroom house in that area around $1395. I'd turn it into a rental and refinance out. Probably be a nice rental too.

How’s the Knightdale market?

Hi @Victoria,

I am a real estate investor from North Carolina, living in New York. I've done two deals in the last 18 months in which I've accrued (in partnership) a total of 16 units. Both deals were multi-family deals. 

The first deal was 14 units (3 adjacent buildings) in downtown Winston-Salem. We bought it in cash at a 7% cap and then refinanced out after we had build a very large reserve. With leverage the return on the cash is in the mid 8%'s. There is still room to raise rents, increasing the value of the property, and will impact the IRR over time.

The second deal was a duplex a mile west of UNCG. This has been my favorite deal. Purchased at $135k. Put a total of ~$34k more into it (renovations, LLC creation, splitting commission, all closing costs, all ancillary costs etc). It then appraised for $200k, allowing me to pull $140k (70% LTV) out in a cash out refinance. That leaves me with $31k left in the deal. With rents at $985/side, and assuming ~50% expense ratio, and an annual debt service of ~$9277, that gives me a little over an 8% return on the cash left in. Furthermore, appreciation has been steady in the area - not like Charlotte, Raleigh, or Durham, but steady.

Not sure why I wrote all that :) I'm just excited about investing in North Carolina and know it's possible while living elsewhere. For me the key has been partners and folks I trust on the ground.

Happy share more or connect. 

Peter

Thanks, @Dave Van Horn. Planning to attend. 

@Darren Sager when's the next meetup in Manhattan?