is it Still possible to buy a single Fam in Charlotte or Durham ?

[Mario Gonzalez]

hello, 

i am researching and feel like NC would be a great spot to buy a single fam then move to the state perm. 

i know the market is nuts now but i want to get some feedback on what i can expect to happen so this way im not blind sided. 

195k cash, 100k for a DP + closing cost + 10k in light rehab, Goal= 6% cocr after 10% PM, 6% vacancy 10% capex/repairs. 

• Elizabeth.
• The South End.
• Dilworth.
• Uptown Charlotte.
• Plaza Midwood.
• Northlake.
• Ballantyne.
• Foxcroft.

single family turn key or light rehab like paint etc. in a C to B class area with low taxes and no HOA at all.

im aiming for a PP under 350k if possible with 15% down best and worst 20% down. 

im living in NJ and have no debt and no bills other than 120 car insurance. 

i wanna buy two spots one in NC and one in NJ, 

rates are going up and i wanna get something soon before it does not make any sense to buy. i dont mind being a landlord etc

risk of out of state property is tricky but where else would i get cash flow and good state for growth near me? 

im looking at Durham or Charlotte to buy. im planning a trip to charlotte in the next 60 days. im hungry for this to be my year and not let the past few years fear hold me back. 

any tips or suggestions on how to get a rental property as a smooth process/tips to get it in this market or best way to get two spots this year would be greatly appreciated 

[Amy Shutes]

@Mario Gonzalez

Charlotte is definitely a good way to go. As you go further a way from Charlotte it becomes much more affordable. Let me know if I can help. I’m an investor myself and a realtor. I’m happy to answer any questions about the Charlotte market.

[Mario Gonzalez]

Quote from @Amy Shutes:

@Mario Gonzalez

Charlotte is definitely a good way to go. As you go further a way from Charlotte it becomes much more affordable. Let me know if I can help. I’m an investor myself and a realtor. I’m happy to answer any questions about the Charlotte market.

 hey going to DM u now 

[Scott Ashworth]

@Mario Gonzalez given those two [2] options I would agree with @Amy Shutes…Charlotte > Durham. Especially given the parameters you laid out. 
Adding to Amy’s point of moving outside the Charlotte (Durham) area - the farther you move from city center, you open your opportunity to long term success. What was on the “fringe” 10 years ago, is hot today. 

I’d recommend creating a 15-20 minute radius outside the hot spots

[Jim Kittridge]

6% CoC is very doable in Charlotte outside of the hotter neighborhoods you mention. Be sure to also account for taxes and insurance in your underwriting.

I'd look at the surrounding towns like Concord, Monroe, Gastonia, etc.. If you have a good agent, you should be able to get one that gets 8-10% CoC. All of the submarkets have strong fundamentals and are seeing an influx of people.

Also, I'd consider buying 2 houses in Charlotte instead of splitting with NJ due to future migration and lower taxes.

[Mario Gonzalez]

@Jim Kittridge hey thanks for the comment. 

im doing the numbers and it maybe me but everything seems to only cash flow 100 to 150 a month after 10% PM,5% vacancy 10% capex and repairs/ assuming 20% down. 

im trying to get a good area with no hoa and mostly turn key since im financing it and being a remote investor for now. 

you mention outside of the area has doable areas but if you had to grade it what grade would you give it? C+?

my cash fund for RE is 190k but im not sure when ill move to NC so i gotta keep 100k just in case but hoping 90k would be enough for DP closing cost reserves and light rehab work, am i crazy or is this amount doable ?

[Jim Kittridge]

It is very doable in the secondary towns as I stated previously. 

Regarding the class, it depends on the area and neighborhoods, just like every market.

You would be well advised to start connecting with property managers and agents who understand rentals.