All Forum Posts by: Jim Kittridge

Hi Tanner,

Assuming you have deal flow, doing a cash out refi can make a lot of sense as you're getting incredibly low rates on a 30 year fixed. It will lower your blended interest rate for your STR investment.

If you're borrowing at fixed 3-4% interest and buying a 7-10% CAP deal, that leaves a lot of room for cashflow. If an STR only produces $300-400/mo in cashflow, I would run.

It sounds like you should hire a property manager and not interface with tenants. 

It's a great niche and like you, I started with SFR. Similar to rural sfr, there are a lot of mom and pop owners who are well below market rents and don't do the best with collections so there is room to add significant value.

Just invest in single assets syndications that fit your strategy. Problem solved.

All of the feedback here is spot on. It pays to learn how to underwrite deals before you start investing. It sounds like your return expectations don't line up with the asset class and investment type. 

I'd consider finding syndicators who can achieve 5-9% cash on cash returns and hit IRR's in the mid-teens. It's higher risk/reward but is still minimal work once you've underwritten the operator and the deal.

Regardless, I'd recommend hiring an unbiased 3rd party expert to analyze any deal you jump into.

Hi @Ava Miller,

The tertiary markets around Charlotte have remained strong for us in cash flow and appreciation. We have rentals in all of them except for upstate SC due to the increased property taxes for landlords. Although we likely find better deals than OOS investors with our relationships, you can still purchase solid deals on the MLS that produce 10% cash on cash and in areas that are gentrifying and growing. It's much harder to achieve that inside of Charlotte without buying in rougher areas.

For example, this house (1836 Arkray Street) just traded for $85,000 in Gastonia on the MLS. It probably needs $15k in repairs. We have 3/1's in the area that rent for $1200-1300/mo.

BP analysis with reasonable assumptions: https://www.biggerpockets.com/...

Rabbu is pretty popular. I'd reach out to those guys.

Welcome to the Queen City Julie. Facebook is likely your best bet. Although I don't see why a management company would not rent to you.

I get what you're saying. If it takes 12 months to do a BRRRR and you have $1 into it at the end and it cashflows $100/year with, is it worth your time?

I agree, CoC is a solid number to reference. From my experience, a 19% expense ratio for SFR is very difficult to achieve, even if you aren't paying yourself for being the manager. We've averaged ~40% across our portfolio over the trailing 12 months before debt. That's in line with other SFR operators.

Also, CoC can be deceiving if you have little or no money in the deal.