All Forum Posts by: Wendell Butler

@Wendell Butler allow me to answer with a question, can you confidently say, there are no deals that are closing in Charlotte, NC?

As you said, it is up there in terms of growing markets in the US. There are deals being traded and you just don't know about it.

Also, consider where we are in the market cycle. This isn't necessarily the prime time to sell. If I was an intelligent property owner, I want to sell for the most bang for my investors.

Only a distressed seller would want to sell right now. If the seller isn't willing to budge from their price then they are not distressed.

I hope this helps!

Everyone has ups and downs in the business. There are days when everything is clicking, and there are days when nothing seems to want to work. The important thing is that we keep showing up.

How are these properties coming across your desk? If you're fishing in an empty pond, you're not going to land any fish.

Years ago when I started, the ratio was essentially 100:1 - underwrite 100 properties to find one that you'd want to buy. As the market matured, that number increased to several hundred to one.

Are you just looking at the asking price and saying it won't work, or are you floating offers that work with your numbers? Are you building relationships with brokers to improve deal flow?

@Wendell Butler to rephrase my question. What is a bad deal to you in NC either on a cap or net income comparison?

@Wendell Butler. I'm very bullish on Winston. I own 5 properties, 6 units (1 property is a duplex). Winston has very strong neighborhood divisions, that might be why rents are seeming all over the place. We buy primarily in B+, A- neighborhoods. Long term rents there go from 1500 to 2200 for a typical 3/2 depending on how nice it is. 

We actually have been converting our units over to mid-term rentals. Winston has a very strong medical community - about 1 out of every 3 jobs here is a medical professional job. 2 major hospitals here, one private, one a teaching hospital for Wake Forest. Traveling nurses/other medical professions are a big thing here. We have 5 universities also, and traveling/visiting professors is a common thing also.

We have a 1/1 mid-term unit that rents for $2200 per month and a 4/2 mid-term that rents for $3200 per month. Nearly 100% occupied (we intentionally keep a couple days between stays, cleaning takes a bit longer between turnovers on a mid-term we found, otherwise we would actually be booked 100% of the time). 

I'm also a real estate agent in the area if you'd like to chat. Just ping me!

@Wendell Butler the first was in 2020, ~$78k w/ ~$28k improvements, then rented for a year then refinanced. The second two were bought as a package in 2022 from an investor selling his portfolio (found through a common realtor). Each was $40k, one 2 bed and one 3 bed. Needed substantial work. Put about $105k into the two of them (financed with hard money, Fund That Flip). Refinanced well but hit the beginning of higher interest rates. All are on the northern rim of Winston-Salem. Far enough to need septic. Not easy/cheap renos for sure but all are now rented and cash flowing modestly after refinance.

Hi @Wendell Butler, we've got three small single families in northern Winston that we bought over the last few years and I've been pretty happy with it. Rents are between 1050 and 1350 for 2 bed and 3 bed smaller homes respectively. Prices have risen with the nationwide rise. Population and economic growth seems steady but not fast. Rents have appreciated pretty well, again in line with national trends. There's very little multifamily but a lot of old SFH that need updating.

Hey Wendell, 

At the moment the MF market in Charlotte isn't as great as other areas. Like you say the numbers just don't add up much. The zoning should be changing soon. But as far as Gastonia goes, I was born and raised here in this town. I'm looking at shifting my investing towards the area entirely maybe we could talk sometime or potentially partner up on some deals!

@Wendell Butler About 87% of residential land in Charlotte-Concord-Gastonia metropolitan area is zoned for single-family houses. This will change in the next 20 years. The MSA area is not the place to invest in MF at this moment.