All Forum Posts by: Mitch Miller

I have not heard of Hudson Capital Partners.  That is not a big deal though there are tons of syndicators out there.  Just vet them if you have not worked with them before.  Understand their prior deals, how did they go,  most resent deal, how are the navigating the interest rates.  Ask how they are being conservative, What is their completive advantage, etc.  

As far as Raleigh, I live here and we are a very good market on a lot of aspects.  We have a very robust employment market, Tech, Pharma, Education(Duke,UNC, NC State), Government being the capital.  We are growing like a weed and in a fly wheel effect, more companies move in and then more people come, then more people come and so on.  Raleigh, Durham, and Chapel Hill are all growing because of that.  Cons are we have seen a large amount of price growth, I dont know the real numbers but have seen a lot of new construction so maybe dive deeper into what the housing shortage is.  I think Class A and B properties could be harder to make money than the affordable housing that is in shortage everywhere.  Anyway that is my two cents, but you should never trust an internet stranger to do your DD, dive in and look at the sponsors and deal yourself if it matches your goals jump in if not wait, I am a big believer that waiting for the perfect time or investment will make you never invest.  Its not the best time ever for real estate but that doesn't mean there is not good deals out there, just increase your DD.

I also have a few older homes I think I have a couple built in the 1910's.  They have all be renovated and would not look that way.  Some Pros are they were built better back then in my option.  I have newer properties that spec builders just through up and have issues with.  The only big issue I ran into is on of the basement walls needed extra support, I don't think a newer build would have that issue.  I just maybe have been lucky but the age does not scare me if the price is right and the inspection comes back clean.  But I see a valid concern here as an investor and if that is a risk you don't want to take I think that is valid.  

Your second point of most of the price appreciation is gone, I think is just off base.  Properties are not like stocks where After IPO the market cap is so large that that most of the life changing appreciation is gone.  In housing the house goes up with the market, think comps.  Example if you buy a new build at 300k or a renovated 100 year old home at 300k right next door, both should see the same appreciation.  Now that is a very high level example but the appreciation is not gone if that makes sense you will capture the ballpark same appreciation if the properties are comparable.  

All Good info in this form, just know that the USDA loans dont just have location requirements, they also have income requirements.  S

@Tony Clark talk to @Shane Lafleur, @Mark Farrington. I have a few others who might be interested as well. Send me a DM and I can give you their contact info.

Here are a few I see people throw around often. Worth calling and seeing if they fit your needs:

Blackman & Sloop

Graham Clements with Koonce Wooten and Haywood

Robert L. Gomez CPA, P.C.

Winston, Williams, Creech, Evans & Company, LLP (who I use)

@Bryce Jamison Looks like an opportunity for you!

Market is doing ok, its a weird time just like I'm sure everywhere else.  Buyers are hesitant with the rising rates and sellers are hesitant because they have to give up their low rates for higher if they sell.  I will say Raleigh is on a couple lists of biggest inventory changes YoY.  That is partly because we had one of the lowest inventories in the nation.  Think if we had 2 weeks inventory and now its 1 month, that is 100% change (the sky is falling) but the national average is still well above that 1 month inventory. Those are not real numbers but the example is true.  People and companies are still coming to Raleigh which are two metrics many longer term investors look at (job and population growth).  There are still people moving here that need to buy.  At the end of the day, its all about your goals and if the macro and micro economics of Raleigh fit that.  Same with your zip code question, without knowing what you're looking to do, its hard to suggest any areas.  

@Brandon Evans Looks like you are in the Raleigh area so you know that that is on the low end of the price range here.  As always its all about what your goals are.  If your looking to cashflow Raleigh is a hard market. If you are looking for appreciation over the next 3-5 years I think Raleigh/Durham is still a good place.   If I was looking with your budget I would move further out, Alamance county, Wilson or Fayetteville for cashflow.  If you needed/wanted to stay closer to Raleigh, I would look at southeast Raleigh (27610), Wendell, or Zebulon.  Most of southwest has already passed your 300k price mark, even Fuquay is over that at the moment.   

If you are asking what I look at, as a cashflow investor, the rents need to be above or close to the 1% rule, where rents are 1% of the purchase price.  300k home needs 3k monthly rent.  This is a rule of thumb that helps make sure it cashflows.  If it hits that rule, I will dive deeper in and look up taxes and insurance.  I will add in maintenance, capex, vacancy, etc and get a more accurate number and see what my cash on cash return is.  That to me is my  metric to compare apples to apples.  I have a google sheet I am happy to share if you want that I use.  

Hope this helps.

@Ilena Napoles Hey congrats on getting started! The more of these deal analysis you do the more you will be able to determine what is a good deal and what isn't.  This deal looks extremely slim on the Cashflow side.  Questions you will get are what is your goal with this property? If cashflow I would pass, if you are looking to buy and hold it for appreciation that is something only you can value as you should know the area. 

Your numbers you use are acceptable but a little on the aggressive side. 5% on the vacancy and maintenance is pretty lean. If you think about turning a unit 8-9% is one month, so you are budgeting less than one month to turn your property if it becomes vacant.  This becomes less of a problem if the deal had more meat on it but because its already lean this compounds that. Also I assume you used county records for tax and have a quote for insurance on the property both seem low but I have no idea where this is so can make comments on that.  

My suggestion is continue to look at more deals and you will start to see what is a good deal and what isnt.  

Hope this helps and keep going!

Hey welcome @Joshua Cilas! REI is a fun journey my only advise is get started sooner than later. You learn so much more from doing than anything else. If you are in the Raleigh Durham area, you should check out the meet ups. Bigger Pockets, Deal Makers, TREA, NCREI, Pints and Properties. Most are free and a great way to meet some of the players in the space.