I'm a first-time real estate investor! Hoping to make some connections here. After watching my dad and uncle flip houses growing up, it's time for me to step up to the plate. I have about $75k in the bank. I make around $160k a year at my current job, but I dislike it.
I currently live in Charlotte, NC. I've been using BiggerPockets' resources for a few months and I've found a property in Maine ($260k) that my wife and I love. The goal would be to use it as a short-term rental because of its location near the coast. I've run comps every which way to Sunday, and even with cutting in a property management company for 25% to run it from afar, considering the renovations and furnishing costs, we'd still be able to make a positive annual net yield and c-o-c at about 57% occupancy.
That's the option we get excited about. There are some upfront costs, but nothing nuts. My head, however, thinks we should probably just look for a multi-family unit here in Charlotte, put the 5% down, live on one side, and rent the other, but it just doesn't hit the same. There are a few near Madison Park and another few in Elizabeth we could choose from. We could get some steady income, but there isn't much supply for multi-families in Charlotte at the moment.
For STRs, I have also looked extensively at Madison, WI (my hometown) and the Ozarks (wife's home state) as other potential opportunities for us. I would love to hear any opinions, advice, or suggestions about STRs vs. multi-family home hacking as a first-time investor. Thanks so much for reading, and have a great day!
Real Estate Agent · Charlotte, NC / Lake Norman · Member since 2022 · 35 posts · 35 votes
2y
Hi David!
Congrats on embarking on your first real estate investment! It seems like both options are great opportunities and will really depend on your goals and lifestyle. I invest out of state and also here in Charlotte and I will say having a property manager for my properties out of state really gives a hands off approach which is great if you do not have as much time with your work.
I am also a real estate agent and can confirm multi-family properties are hard to come by. However, there are a few opportunities currently in Charlotte and if you can take advantage it's a great way to get started with low entry!
Have you considered purchasing a duplex first since you will only have to put 5% down and then later in the year revisiting opportunities in Maine?
I'd love to connect with you more about opportunities I am seeing in Charlotte!
I'm a first-time real estate investor! Hoping to make some connections here. After watching my dad and uncle flip houses growing up, it's time for me to step up to the plate. I have about $75k in the bank. I make around $160k a year at my current job, but I dislike it.
I currently live in Charlotte, NC. I've been using BiggerPockets' resources for a few months and I've found a property in Maine ($260k) that my wife and I love. The goal would be to use it as a short-term rental because of its location near the coast. I've run comps every which way to Sunday, and even with cutting in a property management company for 25% to run it from afar, considering the renovations and furnishing costs, we'd still be able to make a positive annual net yield and c-o-c at about 57% occupancy.
That's the option we get excited about. There are some upfront costs, but nothing nuts. My head, however, thinks we should probably just look for a multi-family unit here in Charlotte, put the 5% down, live on one side, and rent the other, but it just doesn't hit the same. There are a few near Madison Park and another few in Elizabeth we could choose from. We could get some steady income, but there isn't much supply for multi-families in Charlotte at the moment.
For STRs, I have also looked extensively at Madison, WI (my hometown) and the Ozarks (wife's home state) as other potential opportunities for us. I would love to hear any opinions, advice, or suggestions about STRs vs. multi-family home hacking as a first-time investor. Thanks so much for reading, and have a great day!
Hi David,
First off, congratulations on starting your journey into real estate investment! It's great that you're bringing in experience from your family and have done your homework.
The Maine property for short-term rental (STR) sounds like a fantastic opportunity, especially since you've done the math and it seems financially viable even with a property management company. The coastal location could indeed be a strong draw for short-term renters. Given your positive outlook on its potential and the fact that it excites you and your wife, it aligns well with investing in something you're passionate about.
However, the idea of purchasing a multi-family unit in Charlotte is also a solid strategy, particularly for a first-time investor. This approach could offer more stability and ease of management, especially if you're living in one of the units. While it might not be as thrilling as the Maine property, it's a lower risk and could serve as a good starting point to build your portfolio and gain hands-on experience.
Regarding STRs in Madison, WI, and the Ozarks, these locations could offer unique opportunities as well. It's important to consider the local market demand, regulations around STRs, and how these locations compare in terms of potential rental income and growth.
In summary, both strategies have their merits. The Maine property offers a potentially exciting and profitable venture but comes with higher risk and management complexity. The multi-family unit in Charlotte is more conservative, offering a steady income and a great learning opportunity in the field of real estate.
Since real estate investment is as much about numbers as it is about personal goals and comfort levels, consider what aligns best with your long-term objectives and risk tolerance. It might also be helpful to consult with a real estate advisor or mentor who can offer personalized advice based on your situation.
Best of luck with your investment, and keep us posted on your journey!
Real Estate Agent · Kennebunk, ME · Member since 2021 · 48 posts · 30 votes
2y
Hi David, I am an investor and realtor here in Maine.
I would say which route to embark upon depends upon your goals. Starting out with multifamily is a great strategy because it is an easier entry (IMO) than STR. STR can be harder to finance, and have more fluctuations. While multifamily investment is one of the more stable forms of real estate.
If you already have a primary residence, securing the secondary in Maine should be doable (using a small downpayment vacation property loan). However, if you do not, most likely you would be looking at a more significant down payment.
I also have a friend that lives in Charlotte, and know that North Carolina is not nearly as abundant with multifamily homes as my state of Maine.
Either way, just starting to invest in real estate is the right decision, but ultimately what you choose depends on what you are searching for. If you want to chat with me about the Maine property please let me know. I would love to hear what you are thinking.
Real Estate Agent · Charlotte, NC / Lake Norman · Member since 2022 · 35 posts · 35 votes
2y
Hi David!
Congrats on embarking on your first real estate investment! It seems like both options are great opportunities and will really depend on your goals and lifestyle. I invest out of state and also here in Charlotte and I will say having a property manager for my properties out of state really gives a hands off approach which is great if you do not have as much time with your work.
I am also a real estate agent and can confirm multi-family properties are hard to come by. However, there are a few opportunities currently in Charlotte and if you can take advantage it's a great way to get started with low entry!
Have you considered purchasing a duplex first since you will only have to put 5% down and then later in the year revisiting opportunities in Maine?
I'd love to connect with you more about opportunities I am seeing in Charlotte!