All Forum Posts by: Chris Noles

Sorry, not sure what you mean by a “sign now”…

Hi @Chris Noles, I agree with others above that $120k might be too low for MF, but another thing to consider is to invest as LP (limited partner) on a large multifamily syndication (passive), especially as you are new parents and rightfully so don't want to devote much time to REI at this moment. If you go that route, choose your syndication carefully, look for groups with minimum +5 years' experience on doing it, groups that have had full-cycle deals, and have done other deals on that market you are looking for. Pick Markets with large unbalanced demand x supply and large pool of jobs. I've found the table below very useful - I hope that helps.

Hi Chris, 120k does not buy much, even in the Midwest. Quality duplexes worth owning IMO start at about 250k in Milwaukee. If you want to self manage you should keep it within 30 minutes or less. As your portfolio grows anything more than that is unsustainable. Just imagine what your week looks like if you have to do showings or meet a contractor at 3 properties in the same week. 

You can maybe manage one an hour away, at the most Once you go past 2 hours one way you are remote and need a PM. We see that clearly with Chicago investors in Milwaukee, it is just 90 minutes, but it's still OOS and too far to just swing by on your way to work. Plus you have the home field advantage in your back yard, that's worth a lot! 

@Chris Noles congrats on your first investment!  I also own vacation rentals in Myrtle Beach, and I've been very happy with that market.  Eventually you could look at cashflowing MF longterm rentals in that market, I don't think your current budget would go far there right now.

I'm just up the road from you in Chattanooga!  In this market we sometimes can find a C class turnkey single family for $120k or less, MF wouldn't happen at that price point.  Have you looked around Dalton or other areas close to home?  There might be some options there.

In most markets, if not all, at that price point you're going to be looking at a C or D class property.  That can be a handful for self management due to greater risk of tenant non-payment and eviction, not to mention that the property will likely have deferred maintenance to start off with, and incur more wear and tear.  I wouldn't recommend self managing at that price point, and doing it when you're not local is an even bigger ask.

I'm assuming budget is the limiting issue here.  In that situation, some options are (1) wait and save until you can buy something that's a better fit for you; (2) flip to build equity; (3) find other loan options or partners that stretch your funds into a higher price point.  You're focusing on your cashflow goal- consider building equity so you have more funds to invest for that cashflow.

In NW GA you are right in the path development as Atlanta and Chattanooga expand along 75.  That corridor is projected to have explosive growth over the next decade.

Macon, Ga., is indeed on Dave Meyer's list of the top 10 cash-flowing markets. Memphis also meets your 7-hour drive time test, but I would really reconsider whether you want to self-manage something that far away, especially if you're worried about the amount of time you have as a new parent. What about Chattanooga or Huntsville as other options? Regardless, trying to get multiple units as a turnkey for $120K sounds hard in almost any market local enough to you. You might need to loosen your criteria.

STR isn't necessarily worrisome if you're approaching it strategically. Force fitting commodity hospitality assets into normal single family homes is what's risky bc it's so easy for John Doe and Joe Schmo on the same street to do the same

Remember that a hotel room is an STR ... so is a luxury villa with full staff and in-house chef in the French Alps ... and so is your basic 3b/2ba Airbnb listing in Normal-ville USA (sparingly furnished with IKEA furniture). It's a huge spectrum with different price tiers, service levels, and product quality. Where should you play? Not in the commodity space IMO

STR isn't necessarily worrisome if you're approaching it strategically. Force fitting commodity hospitality assets into normal single family homes is what's risky bc it's so easy for John Doe and Joe Schmo on the same street to do the same

Remember that a hotel room is an STR ... so is a luxury villa with full staff and in-house chef in the French Alps ... and so is your basic 3b/2ba Airbnb listing in Normal-ville USA (sparingly furnished with IKEA furniture). It's a huge spectrum with different price tiers, service levels, and product quality. Where should you play? Not in the commodity space IMO