@Account Closed Hickory is definitely a solid market. I don't have anything there, but have explored it a few times and in general grew up going to Hickory for various things. I would vote AFTER rehab that rents could be achieved of $650 (assuming a 2/1 in a good neighborhood).
With you just entering the game, I would agree that a 50% expense ratio will likely be more your number. 35% is achievable, but that would be after rehab and you need systems in place to make is smooth. The struggle I often have is finding good subs, not impossible by any means, but you being from Hendoville (I went to school at Blue Ridge Community College (played a little baseball when they had a program), long story but that's what we called it) your going to spend a lot of time finding good subs. If your willing to live there or have the option too, then it would make that easier to accomplish.
We focus on value add complexes like this in Shelby & surrounding areas, but the issue being, it's too small for us (Our primary focus is student housing). We would like to have at least 20+ units to make it worth the while, if the owners have more and are willing to sell, might be some options on the table.
Regarding seller carry, I would recommend working that scenario thru a future partner who has experience in that world. To accomplish this, you often need a track record showing that you know what your doing. Banks and owners have to feel extremely comfortable with you to do this. Also the seller has to understand that are not in first position and on our deals, they are not in second either ( another topic of discussion, but in the end it's really not beneficial for them to take a second). We've taken down owner financing deals, but even with 7 investors and a strong net worth, we've had multiple deals fall apart due to the fact owners & realtors not understanding the structure. It's a cool niche, but often times I wind up educating everyone in the deal to try to get them all on the same page. Usually requires us to meet with them in person and start a relationship.
Your moving in the right direction, but until you get it rehabbed/stabilized, your going to spend a lot more than you bring in, just the nature of the game. Once stabilized, then it's the cash cow you expected it to be.
