Other things we look for in a deal.
Class B multi-family buildings are still relatively new. They may need some updates, but generally, they're in good condition. These properties offer amenities and are in safe, clean, and desirable neighborhoods. This class attracts middle to high-income earners. We are willing to put in a little work and some upgrades to help bring these buildings to become class-A buildings. Doing so forces appreciation and also brings in a consistent cash flow.
Cashflow
Profit is our primary source of cash. It usually comes in from payments from our renters or through selling assets. If the deal is unprofitable, we won't have enough money to cover all our outgoing expenses, leading us to borrow more cash than we can repay and, worse, lose the property. Cash Flow is the most important thing.
Markets
Forced Appreciation
32 Doors (+/-)
Amenities
The number of doors is vital to us as we believe that we need more tenants to help repay the mortgage and produce enough revenue to hire a professional property management company. This will ensure everything is handled correctly for the tenants and the property itself. Neglecting either one will result in poor performance with rents, ultimately, loss of cash flow.
What We Are Looking For ( The Top 3 Criteria )
Location
buying
multi-family
- Myrtle Beach, SC
- Columbia, SC
- Charlotte, NC
- Greensboro, NC
- Raleigh, NC
- Durham, NC
- Fayetteville, NC
- Winston-Salem, NC
Class B or above
Debt Services Cost