All Forum Posts by: Cary F.

Alabama or Ohio haha...  I've only ever heard that question when people are talking about college football. Cleveland has a lot of solid opportunities for either appreciation or CF. You can buy a "fixer upper" aka money pit in a rough area for next to nothing. Sure I guess you can make that CF with a nightmare tenant.

 You could also go 3 miles west of the rough areas and spend $350,000 for a 2 unit with $1,500+ rents. I don't think Toledo has a range like that. I have no clue about Alabama but I'm sure others do. Hit me up if you want to talk about Lakewood which is more of an appreciation play. 

@Ryan Evans Job well done on your deals! Congratulations to you. It's good for our city when people invest in tough areas. Keeps the momentum moving in the right direction...  I'm a big believer in what's happening in Cleveland. 

I believe you are on the low end at $220. A renovated SFR in Lakewood is easily at or above $300. Duplexes are the same... A nice rehab on a double w/ 1,000 sf per unit will get you to $280 on comps assuming you're not in a bad area within Lakewood.

I do not see a reason to believe that Lakewood is overpriced. I don't think that properties will continue to appreciate at such a high rate, but I do think that renovated properties will easily appraise. In other words, the run on organic appreciate might be at an end, but there is still forced appreciation to be had.

Keep in mind the WHY of high home prices...  It's due to an organic shortage of homes in the entire US economy. 

@James Wise @Ryan Evans

James is right. Go for a more expensive property in a stable area with a 30 year note.

 Cleveland is so hit and miss...  If you're buying for a small amount, it's almost guaranteed that you're in a very rough area. East and West Cleveland both have areas that are like war zones. It would be a big mistake to pull the trigger on a property in an area like that. I always suggest Lakewood if you want strong appreciation and stability. I've experienced 30% appreciation in Lakewood since 2017. If you buy in a war zone, you'll get crap tenants and 0% appreciation. 

@Cassi Justiz

Is due diligence (or lack thereof) not the iceberg than sunk the Titanic? Something "small" that's overlooked can easily turn into a story of the deal that went down..  

 Nice work on the properties! I don't think you'll regret investing first as the upside potential is magnitudes higher than the upside potential of paying off student loans. This assumes that such loans aren't financially debilitating but you seem to be in a great spot!

Any help on this?

@Tyler Watts

@David Seroy

@Dethorn Graham

@Dave Wigfield

@Anthony Davis

@Alex Pickrell

@Kevin Stringari

Hello BP Community! I would like to learn more about the small multifamily rental market in the Charlotte, NC area. When I look for 2 to 4 unit properties for sale in the Charlotte area, I don't see much. However, when I look for apartments for rent, it seems that there are about 1,000 SFRs available in that area.

Are there not a lot of 2 - 4 unit properties available in the Charlotte market? If that's the case, where in that general area should I focus my search? Also, is it true that SFRs are more common for investors in Charlotte? I currently invest in Lakewood, Ohio which is overrun with duplexes and triplexes so I was shocked to see that there aren't any down in the Queen City.

Thanks in advance!

~Cary

@James Cannon

There is no housing crisis in sight for at least 5 - 10 more years.

You cannot have a housing crash like 2008 with a shortage of housing inventory. It's not possible...

The only crisis right now is the shortage of new construction.

-Banks are in check as far as CDS, CDO and MBS volume.

-Government regulations aren't as toxic as they were in the early 2000's regarding housing.

-The Federal Reserve has been engaging in monetary policy but the excess cash seems to be inflating the stock market and not the housing market.

-Banks aren't making NINJ loans as it's now illegal to do so.

-Banks have much more strict underwriting standards regarding LTV and DTI than they did in the 2000s.

A lot of people speculate on yes there's a bubble or no there's no bubble. As far as it relates to a bubble that looks similar to 2008, there's no chance of that same thing happening because of just that...  None of the same things are happening.

Of course it's possible that there's another event somewhere in the near future, I just don't think it will be a real estate event.

You're a banker right? Are delinquencies and 30+ 90+ derogatory accounts not at very low levels? I just don't see the risk right now. 

I don't know man that whole miracle morning thing seemed way too fluffy to me...  Just like Bigger Pockets does half the time. (Not that I haven't learned a ton from Bigger Pockets.)

Real estate is a finance and leverage game and finance people don't sleep enough haha..

I absolutely discount the fluffy cartoon-like messages you get through so many channels these days. This stuff should be boring but lucrative. Half of the "real estate" books out there are written at a 4th grade reading level. 

Some of the biggest players running their own portfolios are ex-investment bankers and to them everything is about finance, accounting and debt placement strategies. (You know, ROI, cap rates, value creation, NOI and capital raising.)

You don't need sleep to do any of that exceedingly well. How do I know? Because investment bankers work 100 weeks which means you can sleep when you're dead haha