All Forum Posts by: Jarrod Buldo

I have property in Greenville and Spartanburg that have a CoC over 10%. I bought them both in 2019, so it's not a fair comparison to today's market -- especially if you're comparing in Greenville where the $ amount of housing prices has jumped much more. Your post made me want to update my numbers and see where I'm at today. I have two duplexes (long term rentals) in Spartanburg that has a CoC of 11% (this one is on a 5.125% 30 yr fixed mortgage), and a house in Greenville that I do short term (Airbnb) rentals that has a CoC of 16% (this one is mortgage free).

I thought before covid, and still today, that Spartanburg is a fantastic market to be in to buy rentals. I just did a search and picked the first multi-family property I saw (217 college st, it's a duplex) and ran the numbers. I'm estimating a 10% CoC return on that one, this assumes a 6.5% 30 yr fixed mortgage and minimal ($3k) in repairs to get the units leased.

Also, you CAN compete with cash offers. Just like a lot of other people, you can get short term financing (like hard money) to create the "cash" sale. It costs more (short term sunk cost), but the option is out there, ready and waiting. That's how you have tons of houses 10+ offers over the past year and half of them could be "cash" offers. No, there's not that many people out there with $300k laying around in cash, hahaha!

So, keep your head up :) There are still deals to be had without even searching that hard! I'd also suggest just starting to tell people you know you're an investor looking to buy in the upstate -- especially people in the RE industry, like lenders, other investors, agents, etc. I've had many deals come to me by word of mouth that were intentionally off-market.

How does the hard money to 30yr fixed option work exactly?

Are we getting hard money to close, and then doing a Delayed finance option to bypass 6 month seasoning requirement? Or possibly holding hard money until after 6 months and doing a normal 30 year refi?

Bought that one rental entirely on my HELOC, and then delayed financed into 30yr as soon as i found a lender. Just making sure a hard money option would be the same.

0 Votes

Live in Upstate South Carolina. Greenville and surrounding areas are my market.

Everywhere I look people INSIST on a 10% minimum cash on cash return.

In the current market, how is that possible? I'm just a guy. What I mean is: I dont have a rehab crew waiting, I don't have $300k for cash offers, I'm not a corporate REIT happy with $30 margin because they can scale.

I'm legitimately not complaining. But HOW are people making long term rentals work? Seems like anything sub $300k is an IMMEDIATE full ask cash offer, which I can't compete with.

And when I look back on lost deals, see what the house sold for, there's NO WAY the numbers worked. Adding in mortgage, vacancy, maintenance alone blows the budget. And that's not including management fees.

Ive managed to grab a single rental, and ONLY because I wasnt a REIT, and didn't plan to immediately displace the tenant. Which the seller was concerned about.

With prices sky high, and investment rates sitting at 6-6.5%, WITH points, what the hell are small scale investors doing to make the numbers work?

For transparency the few deals I've seen, including the one I managed to close, had a CoC return in LOW single digits. Wouldn't see an IRR in double digits for about 3-5 years.

0 Votes

All Forum Posts by: Jarrod Buldo

Jarrod Buldo has started 1 posts and replied 2 times.

Post: Cash flow on long term rentals?.....!

Post: Cash flow on long term rentals?.....!