My First Rodeo

[Josh Rich]

Hey Fellow BP'ers, I need some advice from all of those brilliant seasoned minds out there! Who can give me some tips on C-class apartment multifamily residential (MFR) investing, and section 8 requirements?

Right now I'm looking at a deal that is on the other side of the country (West Charlotte, NC just east of the airport) where I have no real market knowledge and very few connections, so I will be an out-of-state investor in need of a great property manager.

Dangers to avoid? Pitfalls to watch for? Problems and headaches to anticipate? Upside?

Here's the run down: asking price is $2.2M.

-56 units (28 3/1 and 28 4/1.5); 5 are section 8 approved.

-Tenants pay water (on sub-meters) and electric, there is no gas.

-Each unit has washer hook ups, no dryer outlets (clothes-lines)

-GMR $500 and $600/unit and seller claims $350k/yr gross with $150k expenses ($200k NOI); I will put 10% down w/seller financing 15%.

-My $200k+ investment is about 60% of total available capital.

-Seller says he could help mentor me a little and has a "well experienced, wonderful" woman running all of his tenant screening, leasing, evictions, county code issues, etc.

Come on now fellow entrepreneurs and investors, you haven't failed me yet! If you're thinking you have anything to contribute at all to this post...please do! No comment is too small, or insignificant and I appreciate each post.

Thanks in advance!