All Forum Posts by: Greg Fitch

The Triad especially near the I-85 corridor is my focus. I like the stable and diversified employer mix and the location in the middle between the booming metros of Triangle and Charlotte. Properties still largely cash flow positive. Like anywhere, avoid crime ridden neighborhoods and the Class D stuff, but generally I think the Greensboro and Winston Salem metro markets are good bets.

I find that right now High Point lacks the middle class that Winston Salem and Greensboro have, and the multifamily inventory reflects that - it's usually in rough shape. Both WS and Greensboro have more diversified economies and are seeing lots of downtown investment now. I think you'll see more appreciation potential in the two larger cities if you buy in solid neighborhoods.In general however the Triad is not building anywhere near the amount of apartment housing that would satisfy apartment household formation, so reasonably priced units rent almost immediately anywhere in the area. So it depends on whether you want to invest for cash flow or appreciation.

You might reach out to Guardian Water in Raleigh https://www.guardianwp.com/ - they make the submeters themselves. They may know of plumbers in the Burlington area too who are familiar with installing the meters, and could give you an installation quote. It sounds great - investors are pushing it - but there are issues. I was going to submeter for a 24 unit I recently bought but then got a plumbing quote which was surprisingly high, since unit plumbing had to be brought up to code, forcing additional costs and not so exciting return on capital. Second, the property management firm wasn't high on it - they'd had problems with submetering before (the PM manages it so they need to be comfortable with it, including chasing down late/no payments, etc.). Finally you may need to get approval from the NC Utilities Commission to submeter - apparently not that difficult, but an extra step. So I moved away from submetering for now, may come back to it later.

Hi Benjamin - I would suggest looking at crime maps and cross referencing the results with the commuting distance to your work and if you want a downtown experience, how far to downtown. I have ideas but best to stick to the data.

I've said this before but from a cash flow perspective I remain a fan of the Triad market. It's sandwiched between the booming metros of Charlotte and the Triangle and as that growth continues, the Triad's economy will benefit. Being on I-85 its home to lots of warehousing, distribution and light manufacturing businesses and the service economy there continues to grow - all demanding workforce housing, of which there's a chronic shortage. I don't see reasonably safe (from an investment standpoint) areas of Charlotte and the Triangle offering positive cash flow now but you can find 1%+ deals in the Triad. I would encourage you to drive through the downtowns of Greensboro and Winston Salem and see the development that's going on - not as robust as its two neighbors but still transformative.

Thanks Josh. I reached out to Guardian Water, Ruben's suggestion, and we'll see where that goes. Looks like that's a good place to start.

Hi James, I've met T'Vinci's owner a few times at local (Triad) REIA events; he seems like a good guy but I can't speak to the company. Recently I was going through a rough spot with my property management company - I own a few dozen multifamily units near High Point - and entertained switching. T'Vinci was a firm I was considering but we managed to work out the issues and am satisfied where I am. This firm only covers the High Point marketplace or I would suggest talking to them. On another deal I am in contract to purchase, a 24 unit in Winston, I did have a good conversation with a husband wife property management firm called SJL Properties of the Triad; they are based in Greensboro. They are the current property manager at that property and led a successful repositioning and renovation there over the past year. Feel free to reach out to them or look them up online. Best wishes with this choice.

Greg

Hi Josh and Ruben -

I just came across your thread from eight months ago. Dealing with this issue now for the first time on a 24 unit I am in contract on in Winston Salem. Is it lawful to implement a utility fee to cover stormwater, sewer, garbage fees or is that considered RUBS?

If you're after cash flow I would look at markets near the Triangle but avoid the Triangle itself. I've been focusing on the Triad - Greensboro, Winston-Salem, High Point. It's a solid services/light manufacturing market halfway between the Triangle and Charlotte on a major interstate. A more diversified economy than places like Fayetteville in my opinion.

I've bought a few Class B/C townhouse apartments in the Triad recently and gross monthly rent seemed to price out at around 1.2% of sales price. Unless it's a marquee property and/or in a prime area in the Triad, I think the 1% rule still works in this market. There's a tradeoff with appreciation there but if cash flow is your top objective, this market still works.