All Forum Posts by: Luke F.

Kusmayadi.

My office is in Rock Hill South Carolina. I used to run a turnkey, and a resell company in both NC and SC border towns, Basically a 60 mile radius around Charlotte NC.  I no longer sell to investors. Instead I am building 150 units or doors  (New constructions rentals) for a larger company. Or focusing on Apartments. So please ask away, as I answered a lot of folks questions here on Bigger Pockets about our markets.

You can pull up a few older post or  Q & A  that I answered for folks, where I broke Charlotte down by zip codes.

Alex

most real estate professionals has mls access. some have IDX access on there websites

@Luke F.Great question. I think we have to define what good is. For some low caps represent lower risk and that is what they want. Others are fine with higher risk so they go that route. Typically compressed or low caps will have the most future opportunities for appreciation in rents, value and value add. Most work with what their area offers versus trying to make something work 1000 miles away and especially if just starting out. 

For many this is business and treat it as such. Running a business from long distance in the beginning is asking for trouble whether that is REI or running a 711 IMO. Sure it can be done but Murphys Law is waiting for you. Wherever one invests they are better off being an expert in that market first and that way they will recognize opportunities. I could easily tell you to invest in Pueblo because the cash flow is better. The problem is that does not make it a better investment. However if you become an expert in the Pueblo market that is different. Hope that helps you figure out to go with what you know best first.

@Eric Kang

For sure you can find more initial cash flow outside of the coastal SoCal zones. Some desert communties can cash flow like some other CF markets for example. It might also be wise to consider how long you plan to hold as this will generally favor any markets that appreciate historically. 

Consider if the property does not appreciate you will lose ground to inflation and capex. These are hidden cost most newbies forget to factor in the pursuit of initial cash flow. So some might say that is amateurish investing because they are not evaluating the bigger picture. Buy and hold investors own for longer than a one month or a one year snap shot. Most the numbers you see on paper are pure speculation. Some will have zero history with a high cap rate marketed which by itself is at best misleading.

Also consider sfrs were not designed as investments as much as they were designed to be lived in. The reality is 50% of these out of state buys probably are money losers when all is said and done.

All REI is considered risky

and remote investing for a new guy is the riskiest IMO. No matter what someone is trying to sell you. It is just not realistic half the time. Voodoo mathematics with Caps vs real Comps is not going to make up the difference.

 Good luck!

A nice little handful-

• Indianapolis 7.5-9.6%
• Chicago 8-10.5%
• Philly 9-14% (I thought they only went up to 11% there but just checked and I have two, one with 12% and one with 14%)
• Kansas City 8-10%

A couple of things - how are those properties being bought? A lot of them are all or mostly cash offers, that's totally different than someone buying a house with no verified job or income as back in 2006.

The other thing is multiple offers over asking are a result of a limited supply of homes for sale on the market, watch the supply numbers carefully.