New to real estate and looking to connect/get referrals for agents/lenders

[Orchid Djahangirian]

Hi BP members!

Im new to the community and to REI. Im excited to get started and so grateful for your existence!

Background:

Im a urologist from Canada. Met my husband in 2015 in SoCal and he moved back to Canada with me. In 2023, we made the decision to move to USA and chose NC for many reasons, Mooresville specifically, as my husband is a mechanic and doing classic auto restorations.

The immigration process has been brutally long as I am still waiting for my visa to be able to officially immigrate and work. I have nonetheless interviewed for work and just signed an offer in Greenville SC.

Present day:

I have money saved up in Canada and have been reading books, found BP and listening to podcasts, reading forums. I am ready to start investing but not really sure if I even can at this point; not yet having a legal status in US and not started my W2 job yet, I don’t think I could get a typical mortgage.

I wanted the opinion of experienced locals to plan things out. My husband is currently renting an apartment, for which the lease expires in a few months. We wanted to buy a house in need of some cosmetic rehab in Mooresville to live in for now, as we will need to relocate, whenever I can start work, to Greenville SC. We would fix this house up as a flip and this would be our first investment. However, being less than 2 years, we would have to pay capital gain?

If we then buy a place in Greenville SC to live in ourselves, would we be able to use 1031 exchange to differ taxes? If not, we would just hold and rent the Mooresville house.

I’ve been watching the trends on Zillow over some time now and it seems to me that the 1% rule is a thing of the past, like I just missed that boat. When you compare what houses are going for in both Mooresville NC and Greenville SC and what they rent for, it may make 0.5%. And I just learned about the non occupancy tax in SC at 6% by reading through forums… is this for real!? The tax would come to what you collect for the rent! So how does one cashflow with these prices?? I want to invest with a 10-yr horizon in mind, understanding holding an asset that appreciates, while someone else pays down your mortgage, but that is if you at least break even! I am not seeing how that is possible when you factor that 6% tax in; and yet Greenville is a popular place to invest…am I missing something???

Are Mooresville NC and Greenville SC still good places to invest?

Are there local groups/meetings in both these places where I can meet like-minded people?

Any suggestions for an investor-friendly real estate agent and tax specialist/CPA in both these places? Any good lenders you work with?

Having the insight from people in the area who have already done this would be greatly appreciated!!

Orchid

[Julio Gonzalez]

Hi Orchid, thank you for introducing yourself! 

Glad to have you as a part of this awesome community!

-Julio

[Orchid Djahangirian]

Thank you @Julio Gonzalez!

[Robin Simon]

Welcome to BP, lots of great resources here!

[Nick Belsky]

Welcome @Orchid Djahangirian!

Welcome to the community and be ready for a huge amount of information at your finger tips. Be sure to check out the free tools BP provides to help analyze deals you may have and also market insights. Great tools that get updated regularly.

I am on the lending side of things and would be happy to hop on a call with you anytime to discuss financial strategies and help answer any questions you may have about nearly any loan product available to help you on your journey, even if they are not products my capital partners offer.

We are all here to help you learn and grow. Feel free to ask anything, anytime.

Cheers!

[Brandon Jones]

Hi Orchid,

Welcome to the group! There is a great REI in Greenville, SC called UCREIA. I would recommend attending some of the monthly meetups. I'm not familiar with loan applications for non-US citizens, but Greenville is still a great place to invest when you find off-market deals. I would also recommend looking at cities close to Greenville, like Anderson, Easley, & Simpsonville as well since Greenville can be competitive unless you are looking at off-market deals.

Also the non-occupancy tax would be based on the tax assessed value of the property and not the income it produces. I would talk to an accountant about future planning for any REI investments for your 1031 questions & to discuss depreciation for rentals.

[Orchid Djahangirian]

Thank you @Nick Belsky! I will definitely be keeping your contact for the future DSCR loans.

Orchid

[Orchid Djahangirian]

Thank you @Brandon Jones for the recommendation. I will definitely plan on making it to some of those!

What do you mean by off-market? Deals that are found through MLS via an agent?

[Brandon Jones]

No, more specifically deals found through networking with local real estate professionals, finding pocket listings, direct mail, etc. Finding deals through agents on the MLS is going to be much more competitive & it can be harder to find deals where the numbers work. Connecting with local investors would be my number 1 recommendation. That's where we've have the most success.

[Brittany Minocchi]

Welcome Orchid!

Foreign national loans allow people outside of the US to purchase properties here, and they can be done as a DSCR loan, meaning they don't require employment history, income or DTI. The biggest downsides are that they usually have higher rates and require larger down payments. If you can wait until you have legal status that would be ideal, but may not be absolteuly necessary if you want to get a jump on things.

Happy to answer any questions you may have now or in the future, feel free to reach out and good luck!

[Orchid Djahangirian]

Thank you @Brittany Minocchi, much appreciated!

[Michael J.]

Orchid, Hi and welcome to BP! Congratulations on your journey into real estate investing (REI) and your upcoming transition to the U.S.—it sounds like you're already taking some great steps to prepare. Let me address your questions and concerns step-by-step:

1. Visa and Financing

You're correct that securing a mortgage might be challenging without legal status or a W2 job. However, here are a few options:

Private Lenders or Hard Money Loans: These don’t require traditional documentation like a W2 and are often used for fix-and-flip projects. The downside is they usually come with higher interest rates and shorter loan terms.

Partnerships or Co-signers: If your husband or a trusted partner has U.S. legal status and credit history, they might be able to co-sign or help with financing.

Cash Purchases: Since you have savings in Canada, you might consider using that for your first property, especially for a smaller rehab project.

Foreign National Loans: Some lenders specialize in providing loans for foreign nationals. It’s worth exploring this route.

2. Mooresville Flip and Capital Gains

If you live in the Mooresville property for less than two years before selling, you likely won’t qualify for the capital gains exemption (which requires living in the home for 2 out of the last 5 years). However:

Capital gains taxes can be minimized through deductions like rehab expenses, holding costs, and agent fees.

Alternatively, if you decide to keep the Mooresville house and rent it out, you could potentially defer capital gains taxes through a 1031 exchange, but this only applies to investment properties (not primary residences). The Greenville home would need to be another investment property—not a personal residence—for a 1031 exchange to work.

3. South Carolina's 6% Non-Occupancy Tax

Yes, the 6% property tax rate for non-owner-occupied properties in SC is real, and it can feel like a tough pill to swallow. However:

Strategic Tax Planning: Work with a CPA who specializes in real estate to maximize deductions like depreciation, interest, and operating costs.

Higher Rents for Premium Properties: Some investors offset the tax by focusing on properties in high-demand areas (downtown Greenville or near universities, for example) where they can charge a premium rent.

Short-Term Rentals (STRs): Consider STRs like Airbnb, where higher nightly rates can make the numbers work better than long-term rentals. Greenville, with its growing popularity, has a strong STR market.

4. Market Analysis: Mooresville NC and Greenville SC

Mooresville NC: Known for its proximity to Charlotte and Lake Norman, Mooresville has solid growth potential, especially for families and professionals. While the 1% rule might be difficult to achieve, appreciation and a livable flip might make sense for your goals.

Greenville SC: This market has seen significant appreciation and demand over the last few years. While cash flow margins are tighter, Greenville is a desirable area with a strong job market and population growth. Look for properties in up-and-coming neighborhoods where rent growth is catching up to home prices.

Feel free to reach out if you have any specific questions or if I can help you navigate the markets in Mooresville or Greenville. I’d love to help you get started on your first deal.

Looking forward to seeing your progress!

[Arn Cenedella]

@Orchid Djahangirian

It appears a few clarifications are in order here.

1. A 1031 exchange is NOT available for owner occupied property so that’s the bad news.

The good news is for owner occupied primary residences, for married couples, the first $500,000 of pain is tax free.

No need to worry about a 1031, live in the house, sell it, use the $500,000 exclusion and you pay KP tax on whatever profit may exist,

2. There is much confusion about the 4% and 6% in property taxes.

Non owner occupied property is taxed at 6% of the value to get the taxable value.

This does NOT mean your actual property tax is 6% of the purchase price for rental property,

In reality property taxes are about 2% of the purchase price for rental properties and about 1% of the purchase price for owner occupied properties.

Google Greenville County Property Tax estimator and play with it and get a sense of how it works.

3. We moved to Greenville 10 years ago from SF Bay Area Silicon Valley and love it. Great place to live great place to invest. You will love it here.

[John Underwood]

Greenville is an awesome place to invest.

Check out our local Real Estate Association. 

Upstatecreia.com 

[Orchid Djahangirian]

Wow thank you @Michael J. and @Arn Cenedella, I appreciate all that really helpful information!

@John Underwood, I will definitely be planning to make it to those meetings as soon as I can, thank you!

[Mike Klarman]

Orchid, welcome. If your Husband is a US citizen, just open an LLC and do a 50/50 equity split with him. Does he have good credit? If he does you can use his credit.

There are lenders out there who will fund Canadian investor. I have four Canadian clients myself, but if you are in the LLC with a US citizen then the LLC can borrow under US citizen terms.

[Heath Sizick]

Welcome Orchid. I am in the Wilmington area. If you are ever interested in buying coastal property let me know & I can help get you connected to a realtor here. The Sneads Ferry/Holly Ridge area is one of the best places to invest in the state. 

[Ko Kashiwagi]

Hi Orchid,

Have you looked into multi-families in the area? Typically they tend to cash flow well so a 4 unit might hit those 1% rule.

I'd also highly recommend local real estate meetups, as you'll get local insights

[Laura Shinkle]

Hi Orchid!

It sounds like a couple of folks have answered most of your questions. 

Just to confirm, for an owner-occupied home (one you live in) you have to live in the property for 2 out of the last 5 years in order to claim the $500k exception for married couples. That said, check with a CPA if you can use expenses from the remodel to offset some of the gains. And at the end of the day, paying taxes means you made money, so that's awesome! 

You can only use a 1031 exchange for investment properties, not a home you live in. Have you considered buying the Mooresville property and then keeping it as a rental? Wealth is made in the buy and hold strategy of real estate. Over time, the home will appreciate, rents will likely go up, etc. If you're worried about cash flow, put enough money down so that a current estimated rental price after the home is renovated will cover the mortgage and property manager costs. Interest rates are what they are, so find some different strategies to make it work. Time in the market is better than timing the market. 

As far as Mooresville as an area goes, it's a great spot. It is growing in popularity because of proximity to Charlotte (about 45 min drive) and Lake Norman but still has a small town feel. The median price in Mooresville is currently $478,000. In Iredell County (the county Mooresville is in) has a median price of $376,000 so going slightly outside Mooresville might be more appealing. Home prices are steadily climbing around 4% or so YoY. 

If there are other areas in the Charlotte Metro area you're interested in, I'd be happy to chat with you about them since that's my area of expertise! Best of luck with the move and your real estate journey!

[Orchid Djahangirian]

Thank you all for your insightful responses; I hope you all had a great holiday!

@Mike Klarman have you had issues with getting a conventional loan under an LLC? I think having an LLC is a great idea, but I have heard it makes it difficult to get conventional loans.

@Heath Sizick I would love to have a STR on the coast one day, I will keep you in my contacts for sure.

@Ko Kashiwagi I was thinking the same with multi-family.

@Laura Shinkle thank you for the clarification! I agree with you with holding the property.

[Jonathan Anderson]

Hi Orchid! 

I'd love to assist you! I am an agent/investor. I've host monthly REI meetups via Biggerpockets and the local investor Facebook group that I run. Hope to see you at them sometime! I'll send you a connection request.

[Heath Sizick]

Thanks! Happy Holidays!

[Joseph Bui]

I don't know North Carolina well, but I have a 10 property portfolio across Detroit and Memphis and I believe these markets are solid places to start and build a portfolio. Happy to connect and knowledge/resource share if you are interested in these markets.

[Francelia Roberts]

Welcome to the Bigger Pocket community

I was a RN now transitioned to a virtual assistant. I wish you and your husband success.

[Orchid Djahangirian]

Thank you @Joseph Bui and @Francelia Roberts! Appreciate it