North Carolina $50K Properties?

Question

I am fairly new/new to real estate and I have a bit of cash saved up. Unfortunately I can't do much with $7K in California. However I looked for properties in North Carolina and I found many properties in Winston-Salem/Greens Boro area.

I do not plan to move there, I am fine in LA for now. I would like to buy and hold the property and ideally have some tenants. In other words, I want to invest in properties/rentals.

I wanted to ask, has anyone invested in that area (for rentals)? Any feedback, answers, or concerns to watch out for would be highly appreciated.

Jay Hinrichs · Answer

sounds good..  there are two sides to all of these posts.. you have the RA RA RA go for it come invest here posts.. and then you have post that try to talk a little bit more conservative and mention the other parts of owning real estate rentals.. ESPECIALLY low value assets clear across the country..  for locals they are fine and most self manage and have uber control of them.. but a LA resident with a one off sub 50k home there is a lot of risk in those types of properties and investments.. and the folks selling them to you are well not really talking about the down side risks.. why would they there job is to make a sale..

Brian Ellwood · Answer

If the 7K includes all your personal savings, you may consider saving up more. I like the 3-6 months worth of expenses + 5Kish in the bank as reserves for each deal you buy, even if you land a no money down deal.

Jay Hinrichs · Answer

Agreed,

real estate investing is just a small business the reason most small business's fail is lack of reserves.. Plus if 7k is your cash position and you have no experience your going to have one heck of a time finding a long term loan.  And HML can wipe you out if not done correctly.

Edwin Lopez Reynoso · Answer

@Joseph Bafia

Thank you Joe for making your self available to talk and sharing some valuable knowledge! :-)

Henry Lazerow · Answer

As mentioned above these cheap homes/duplexes can be a nightmare from out of state and are really best for do it yourself locals. $500 range rents will get destroyed by all the little fees a manager charges you and turnover costs.

Maybe look into a local house hack with a low down mortgage. Can even do a condo and then rent it out after you leave. $7k you can safely get a condo fha.

Edwin Lopez Reynoso · Answer

@Brian Ellwood

Thank you for the tip. I am planning to gain more knowledge as I save. Maybe by November or December, Il begin taking major steps.

Joseph Bafia · Answer

@Edwin Lopez Reynoso Good luck to you!  Get that Househack done!

Joseph Bafia · Answer

Edwin-

I live in Raleigh NC, but have a duplex that I’m rehabbing right now in High Point, NC which is just outside of Greensboro.  Market is very mixed, and some prices and entry is very low.  As example, the duplex we purchased was $30k.   Rehab will be roughly $30k and ARV close to $75k  with a rent of $425 /door.

as a side note, my son moved from NC to Los Angeles last year and loves it out there.

Caleb Griffin · Answer

@Edwin Lopez Reynoso I'd be happy to help in the Winston-Salem/Greensboro area. I'm from Atlanta, where I did a lot of wholesaling, and now I'm working on finding some deals here for investors like yourself. Feel free to message me, love to chat!

Zachary Ray · Answer

I highly recommend checking the area out prior to investing. Pictures can for sure be deceiving as you want to feel out the street and surrounding areas. 7k might not go a long way when it comes to out of state investing. You might be looking at 20 to 30 percent down payment for a non owner occupied loan. Just a heads up.

North Carolina $50K Properties?

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