New Real Estate Investor in NC

[Michael Everett]

Hello BP Members, I'd like to introduce myself on here and just start off by saying how much I appreciate all the hard work and information that comes from this amazing network of real estate investors.  Awesome resource here!  

I'm a new Real Estate Investor in central North Carolina looking to purchase my first SF/MF Buy & Hold Rental Property. I've been exposed to REI for pretty much my whole life as some close members of my family own rental properties. Growing up, I always noticed that those family members pretty much did what they wanted to do, when they wanted to do it, and that seemed awesome! I've always had an entrepreneurial spirit inside of me, and I feel like this is the best way to use that to my advantage. I've been saving capital, looking at deals, analyzing properties, and just gaining as much information as I possibly can over the past year or so, and I finally want to get through this "analysis paralysis" stage. I've always heard that your first property is the hardest one and so far, I'm finding that to be 100% true. I want to put all this research and deal analyzing to action and close on my first rental property in the year 2020.

I eventually want to achieve Financial Freedom through a portfolio of cash flowing rental properties consisting of single family homes and multi-family complexes.  The area of North Carolina that I live in is about an hour south of the Raleigh/Durham/Cary area and roughly 45 minutes from Fayetteville/Fort Bragg.  I am looking to acquire my first deal locally, and then maybe once I get some landlord/Property Management company experience under my belt, I would like to branch out and start looking into long-distance real estate investing through turnkey providers, or whatever the best way to do that would be.

At this point, I am still saving for a downpayment on my first rental property, and looking to team up with lenders, an investor-friendly real estate agent, property managers, contractors, and all the cogs in the gear that make the wheels spin so seamlessly (I'm sure I left a few things out.) I have been trying to analyze at least one deal every day for the past few months and am slowly gaining confidence in that aspect of the game. The thing that seems to be the trickiest for me is estimating rehab costs and knowing CapEx/Repair costs associated with the properties. In my local market, it's really hard to hit the 1% rule, unless you're looking at a pretty run down mobile home, or a sketchy neighborhood, but I've still been analyzing away just to give myself a feel for how the numbers work.

I've set a goal of buying my first single family rental property this year and doing all I can to see that goal accomplished in spite of the craziness going on right now with the COVID-19.  I feel like in the coming months, there may be some really great deals to be had, so I'm going to keep analyzing, keep saving, keep networking and hopefully I can kick this analysis paralysis in the head and be a rental property owner in 2020!

[Chris Levarek]

@Michael Everett Sounds like you on the right path. New deals will be coming in 60-90 days that might help with those 1% numbers. At the top of the cycle, it is harder to make those rules of thumb work without some digging. 

For assistance with the rehab estimates, have a call with an experience contractor or property manager. Walk any property with them and even pay them 50-100 to look at a property with you. Not only will this prep you for the real deal but it will see if you are off with your estimates. 

Lean on the experts. This gives confidence and ensures will find better success. Real estate investing is a team sport.

It's a great state to invest in. We've done investments in Durham/Burlington and Fayetteville. Keep at it!