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All Forum Posts by: Matt Sinn

Matt Sinn has started 2 posts and replied 6 times.

Post: Looking for investor friendly credit unions in Raleigh, NC area

Matt SinnPosted
  • Rental Property Investor
  • Raleigh, NC
  • Posts 6
  • Votes 3

Thank you Mitch.

Post: Hospitals in central/eastern NC

Matt SinnPosted
  • Rental Property Investor
  • Raleigh, NC
  • Posts 6
  • Votes 3

I'm working towards MTR near hospitals. Tier 1 hospitals near where I live (Raleigh) are Duke / UNC hospitals (Durham/C.H.), Wake Med (Raleigh) and ECU/Vidant (Greenville). Cape Fear (Fay) is tier 3 but am interested in it (Fort Liberty might also be a source of MTR tenants).  Have read a couple books but just starting market research.  If you have any insights to share on MTR supply vs demand or demand seasonality near these hospitals/areas, I would appreciate it.

Post: Looking for investor friendly credit unions in Raleigh, NC area

Matt SinnPosted
  • Rental Property Investor
  • Raleigh, NC
  • Posts 6
  • Votes 3

Any suggestions for credit unions with easy membership requirements (am not a veteran, former state employee, etc.) that loan on single family investment properties? My list to call looks like this right now: Coastal, Langley, RTP federal, Summit. Any feedback on this list or a good one that I missed? Thank you.

Post: New Build Duplex, Johnston County

Matt SinnPosted
  • Rental Property Investor
  • Raleigh, NC
  • Posts 6
  • Votes 3

Jeff - I'm in Raleigh and working on building first duplex in Wake or Johnston counties. Broker who sells a good amount of small multi (duplexes, tris) as well as larger MF tells me new duplexes/product should get $500k in Wake (have not asked him about Johnston, though would guess there's slight discount). There are not good comps on that b/c most duplexes/tri's in Wake that trade seem to be 80's construction. He's run comps for me in Wake and probably can do for Johnston as well. Lots in Raleigh are priced too dearly generally speaking and makes it hard to make the numbers work together with currently inflated building costs, so in last few weeks I have started working on Johnston. I'm working on understanding the zoning and building code enforcement in Johnston  in terms of what small multi can be built there.  Am also trying to identify GCs who are fit with building duplexes.  I met broker last week who says he knows of some duplexes being built and am trying to reconnect with him. 

Let me know if you want to connect. We can see if we can help each other out. 

Post: How to search eviction records for Wake County?

Matt SinnPosted
  • Rental Property Investor
  • Raleigh, NC
  • Posts 6
  • Votes 3

Chris & Clay - Thanks for the great information. I think Clay and I are looking for same thing: list of newly filed evictions with contact information for the filer. I looked at links in Chris' post and reached out to SpeedyFiler. 


Has anyone found a service provider that uses the RPO/NC courts online access (https://www.nccourts.gov/services/remote-public-access-program/rpa-online-access) and sells eviction filing lists to individuals/investors? 

Post: Newbie Question - Cap Rate

Matt SinnPosted
  • Rental Property Investor
  • Raleigh, NC
  • Posts 6
  • Votes 3

@Nicholas U.  - a couple of other things to be aware of:

As other have said, there are better metrics than cap rate to base purchase decisions on. However, if you are thinking of buying and holding a property a specific period, like 5 years, then you need to estimate the value on exit and what cap rates might be in 5 years and estimating market value as NOI / Cap Rate in 5 Years is one way of doing that, so you need to understand what rates are in the market today and estimate what they'll be in the future if you're planning something other than buy and (indefinite) hold. So, you still need to understand them if you're buying multifamily.

Related point is about value creation. Let's say you're a value-add guy and you raise rents $10/U/mo on those 20 units or $2880/year. How much has market value of property gone up if it's a 5 cap property? a 10 cap property? If it's a 5 cap, increased value is approximately (assuming rents flow straight through to NOI) $2880/5% = $57,600 but if it's a 10 cap increased value is $2880/10% = $28,800. Wow...the market value of a $1 improvement in NOI on a 5 cap property is 2X that on a 10 cap property.

Finally, keep in mind that cap rates are pretty squish numbers in that sellers and buyers will calculate different cap rates on same property because their NOI assumptions differ. Let's say scheduled rents are $192,000 (20U @ $800/U/mo.) and seller claims expenses are $38,400 (20%) and NOI is said to be $153,600. A 20% expense ratio is likely artificially low and a (directionally) more realistic expense # is $76,800 (40%), giving NOI of $115,200. (There are several other refinements that should occur to preceding #s as well). Brokers will often quote cap rates based on pro forma calculation where they assume improved rents and reduced expenses and those cap rates will be greater than current because their pro forma NOI will always be better than the trailing NOI.  ...Reminds me of "lies, darned lies, and cap rates"