All Forum Posts by: Greg Fitch

It's gotten so time consuming for my contractors to source cabinets, countertops, lighting and plumbing fixtures etc. from big box retailers to do multifamily unit renovations. I stumbled across Vima Decor on a podcast and am intrigued by their business model. Has anyone worked with them before? If so, would you share your experiences about quality, pricing, service? Did it offer advantages over Lowes and HD? Thank you.

I'm in contract to buy a 24 unit property that was built 40 years ago. The 2 bedroom units are tiny - 480 square feet. That's not even a very generous 1 BR but again that is the size of a 2 BR. The living/kitchen room is so small, and bisected by so many doors, that both barely function. And the biggest disconnect is the location - it is super nice, in a historic district, walkable to a vibrant downtown. The property is operating way below its potential. I inspected all the units and rarely saw both bedrooms with beds, so even now they seem to be used as a 1 BR.

Since cabinets, flooring, electrical, plumbing, etc. have to be upgraded anyways, is there a financial payoff for turning the units into 1 bedrooms - e.g. moving the kitchen wall into a bedroom, creating a design that looks and functions better? Or do 2 BRs always rent faster and for more money? A nice 1 BR, or a cramped 2 BR? Thank you, Greg

You also want to make sure the other renters in that unit are going to be safe. Yes ask him what's going on with the mail situation and also ask for references (if it's not too late). If he can't give you references, that is a red flag. If the references don't know him well or give bad referrals, also red flags. Trust your instincts. 

Clive I have some units in Thomasville. Congrats on your purchase. It's a nice drama free market. Where did you buy? My property manager recommends:

All Kool Heating and Air
Mike Nichols
336 698 6820

But I do not know him personally.

Chris, greetings from nearby Chapel Hill. So 4 units or less is considered residential, not commercial. Have you tried Truist, First Citizens,etc. The ADU shouldn't be an issue with them.

Hi BP family - I am in contract to buy a 24 unit multifamily in Winston-Salem, NC, a 50 year old property consisting of small one and two bedrooms and largely original fixtures and systems but located in a terrific neighborhood. Units need LVP flooring, lighting, electrical and vent improvements, kitchen cabinets, HVAC upgrades, windows, etc. Does anyone know of a reputable turnkey renovation contractor serving the multifamily industry in the Triad (NC) that works at this scale? Many tenants are month to month. Thank you very much. Greg Fitch

Carl, I invest in multifamily in the Triad. It’s been challenging trying to find a CPA with a deep understanding of real estate tax issues, especially planning, not forensics. I use a firm here in Chapel Hill but this is not their forte so I will not recommend them. Unfortunately I dont know any of the Triad based firms you listed. You might look at Brandon Hall’s real estate accounting firm. He is based in Raleigh but his associates are all over the country. It’s sort of a virtual and millennial firm. Brandon Hall hosts a pretty good podcast called the Real Estate CPA. That might give you a sense of whether it’s a fit. Best, Greg

Tim, I took a break from BP for a while but in case this thread it still active here's my two cents. I am a MF investor in the Triad. I did recently look at a 88 unit on O'Henry with expiring affordable housing requirements which seemed to cash flow on paper but half the property was in a flood zone which caused concern. Investors 'flooded' into that property though, undeterred; the seller had offers within days and I read it went for something like $200k over list price. So much for my concerns about risk. It is a fairly rough part of town but I wondered if the new beltline with its nearby interchange might bring renewal or at least easier connectivity to jobs and services. I also know a bit about the property manager you mention as they managed the property I bought in Winston-Salem two years ago. Sadly after the previous investor renovated all the units, they leased it up as fast as possible without doing much vetting, to prep it for a quick sale, and we - new property manager and I - have spend time and money addressing that. That was a learning experience. Presumably that property manager did that at the request of the owner and they are capable of other approaches. If you are still interested in property managers, let me know.

Owen, because the unit count it under 5, the banks should categorize it as residential, not commercial, which should make it a widely marketable product. First, do a soft pull of your credit score on a site like Credit Kharma (free) to make sure you have at least good credit. I would get a few quotes from the big lenders like Truist, PNC and First Citizens and compare rates and fees. The credit unions probably won’t have the most competitive rates but will be easier to deal with. But I don’t think you’ll have a problem with this one. I say, try the biggies. This won’t be hard to get approved, and referrals or relationships won’t matter much here as a result.

I have some properties in and around Winston-Salem but don’t know Stokes County per se. In general, the further the property is from a regional metro and an interstate, the more risk for the landlord/investor. Towns often are ‘one employer’ towns which is risky in that employers can downsize or shut down,often without warning, quickly lowering rents and raising vacancy rates. Wages don’t rise much either, suppressing rent growth. I’d rather look for a property near a variety of employers and near services like essential retail, restaurants, banks, etc.