All Forum Posts by: Chris Ayers

Congrats on your first deal. Is it in Thomasville? If so, how has it been working out? 

There are some lenders that do less but it's difficult to find. There's always hard money or private lending? 

 This is in NC and I'm in the research process of buying it so no worries.

 I have heard that. 

 Never thought of that.  Thanks. 

Well I asked if they were section 8 and he said no just govt assistance so I'm guessing it's all disability and welfare checks? 

Checking out this one 29 unit apartment building now and spoke with the current PM who mentioned that:

• Most tenants are on government assistance
• Building is old but condition is fair
• Great cash flow. 
• Converted hospital to apartment building years ago 
• Owner pays utilities and you can't separate

It's in a class B-C area but not sure how I feel about most of the building being on government assistance. Has anyone every dealt with situations like this and how did it turn out for you? 

Didn't know that about the AC units. That is a deal breaker for me. 

That tells me that area has a few more years to go before I would even consider it. Borderline war zone at that point. 

I'll give you an example, I am about to refinance 3 duplexes that have decent cash flow now. After refinance my NOI with reserves is $2,650 and my mortgage is $2,100. 6 units and 550 per month in cash flow is pretty bad in my opinion. But when I mention I am about to pull 35K out to invest in another home, then the decision makes more sense.

I am in accumulation stage now where I want to buy as many units as possible as fast as possible within my risk tolerance. Once I hit my target NOI I'll start paying them down until they are gone.

This is just my opinion, but BRRRR is a method to get capital out of property so you could reinvest in more properties. You do this while in the accumulation stage to grow so you're not really worried about cash flow as much as you would in the future.

Once you are done accumulating enough to hit your goals, then it's time to pay them off either naturally with profits or selling the less performing ones. Watch your cash flow rise now. 

This helps you grow much faster than waiting for your cash flow to grow enough to buy the next property so you're sacrificing cash flow now for more growth. 

I also agree with others that your CAPEX is very high considering you would have just rehabbed the property.

Do you want to trade places? haha  You're doing great. 

I would hire a PM and really live free from everything, but that's my preference.