All Forum Posts by: Phillip Vera

@Michael Grant what are your thoughts on wholesaling?  I've known some wholesalers make six figures in their first year.  They did invest in the right training, but with limited capital, or high debt, you could turn a few deals and either pay down some debt or buy cash.  Also, as a wholesaler, you'll be able to pick up some good properties because you'll have first look and what you don't want you can always sell.  

Most wholesalers I know strictly wholesale.  I never understood why they didn't hang onto a few properties, but I guess they are sticking to what they are best at.

@Jr Trotta you can't go wrong in the Southeast!  @Brian Briscoe mentioned some good markets.  I know Charleston is fast-growing.  Pricing is a touch higher, but North Charleston seems to be the hotspot for investors.  There's also some small multi-family opening up in the market.

I'm a big fan of Augusta, GA.  It too is under 1M population and gets overlooked.  Has had some larger multi-family inventory open up, but there is a 28-unit that just went under contract. I'm obviously biased, being in the market, but there's a lot of good stuff happening here.  Happy to discuss.

For true smaller multi-family (duplexes, triplexes, quads, up to 12ish units), I like the Chattanooga market.  There are a ton of these types of smaller multi-family in the market.  I actually know of a turnkey 5-plex off-market (1%+ deal) for sale right now as well as a triplex.  Not sure if that's too small or you're looking for larger.  You get some higher rents in this area and is another market that gets overlooked as folks always think of Nashville and Memphis first.

What strategy are you looking to do in deploying your $250k capital?  Also, what size multi-family?

@Dave Rav sounds like you may have locked up a good one! Crazy that you found that on the MLS! Which part of Columbia?

Depending on the area, $42k per door sounds reasonable, especially for the stick built home.  I've never invested in mh, but know a few folks that have.  Couldn't guide you on that, but I feel like your cap rate on the lot should be a touch higher based on what you're buying in my opinion.

I'm actually headed to Columbia and Charleston in the next few weeks.  Would love to connect if your knowledgeable of the areas, especially Charleston.

@Zoltan Kalu, you're looking in all the right markets!  Columbia is a great market with the military base, university and government jobs being the state capital.  Size and population are growing quickly. As @Kenneth Mooney mentioned, you can't go wrong in Augusta either.

Interested to hear how everyone gets pushed to North Augusta vs. Augusta?  I'm assuming tax costs being slightly less across the river and appreciation a bit higher?  It's certainly experienced growth and there has been some inventory, but for multi-family in the area, Augusta has had some inventory open up in the last 6 months.  

What areas in Columbia are you looking into?  Also, when you say small multi-family, what range of unit count?

@Kayce Tackett I'll be in Columbia next week, would love to connect sometime.

Kenji,  I am interested in leads in the North Charleston area.  We have several investors interested in this area.  Thanks.

David, mind if I message you?  We are an experienced PM and soft opening in the Charleston market.

@Ryan Gandy @Kimberly Kesterke I third the Augusta market! Augusta has proven to be a fairly insulated market in economic and real estate dips or downturns. It also is large enough where it allows for just about any real estate investment strategy (BRRR, cash flow, appreciation, etc.). Piggybacking off Kimberly's post, it's a very proven market with low cost to entry. There's also some major manufacturing, cyber command, and nuclear energy that add a ton of jobs and renters to the mix. It's been a lagging market in appreciation and rental rates, but that's increasing by the month. There's also North Augusta and Aiken markets close by that add for some additional investment opportunities.

@Account Closed just mentioned something more important.  Either the turnkey provider or your team is more important than the market.  The right team or provider can make you money in nearly any investable market.  However, the market can't make up for a bad team or provider.  

@Yaamu Camara regardless if the property is in an LLC or your personal name, you'll want to have separate accounts for your rental property. Not necessarily each state or each property, just for rental property in general. I would suggest:

1. Checking Account - Operating - This is your money.  This is where you make contributions and draws, pay for rehabs, maintenance, etc.

2. Checking Account - Escrow - (Some states require this)  This is the account ALL rent money gets deposited into.  Once you collect all of your rent, sweep it over to your "Operating" account.  Then it becomes yours.  

3. Savings Account - Reserves - This is your money.  Take a % of money from your operating each month and build a reserve account in case of capex repairs or maintenance.

4. Savings Account - Security Deposits - This is the resident's money.  Security deposits should go into a separate account and NEVER be used because it's technically not your money.

Any property under the LLC, can utilize these same 4 accounts.

@Andres Vargas you can also request a $25 annual increase.  Augusta is one of those "street by street" cities.  Look to South Augusta and Harrisburg.