New to Investing-- Looking into NC. Any advice?

New to Investing-- Looking into NC. Any advice?

New to Real Estate · Charlotte, NC · Member since 2021 · 5 posts · 1 vote

Hey Guys!

My name is Matt and I recently got into real estate investing and over the past few months have I've done a lot of research. I won't bore you with all of the details about that, however, it has helped me narrow down my criteria quite a bit, and I'm hoping to get some help/advice. 

I currently live in Rock Hill, SC which is about 25-30 mins from Charlotte, NC. I originally was looking to invest in SC since I live in SC, but after reading a bunch of forums and talking to a few others, it seems like it might be a better idea to look in NC. From what I can see, NC is a more landlord-friendly state and I've seen quite a few people talk about how they're losing a lot of cash flow in SC due to the owner-occupant tax situation here. 

With that being said, Charlotte isn't somewhere I'm interested in investing. I'm looking at places more affordable like Greensboro, Winston Salem, High Point, and Fayetteville. I'm going for cash flow, and not something too far away because id rather not have to hire a property management company for just one property and because again-- trying to maximize cash flow. 

I plan on going for a conventional loan for my first place and am looking at houses a little below the median price ranger in their area and something that is more rent-ready. Not turnkey, but not a fixer-upper either. I'm looking for SFH for under $100,000. Probably closer to the $80,000 range, but am also curious to know if there are any decent properties in decent areas closer to the $70,000 mark. I know that might be a long shot, but can't hurt to ask.

So I was wondering...

1.) Are my above reasons justifiable for wanting to invest in NC instead of SC? Am I missing anything like any cons in NC that maybe im not aware of?

2.) Are the places I've listed in NC that I'm looking at investing in, good for cash flow, and could I get something that I'm looking for in my price range there? (I look at the MLS, but am directing this more at people who live/invest in those areas.)

3.) Are there any other suggestions on other cities in NC where I can get something in my price range that could generate a decent cash flow? 

4.) Should I continue saving/learning until I have more saved up? 

5.) This is how I've narrowed it down currently to help me from staying in the analyst paralysis stage. I'm not opposed to things like seller financing or/or getting a MFH, in fact, I do plan on doing that in the future, but this, from what I can see, makes sense for me right now. Again, I'm open to advice and feedback about this too. 

That was kinda long, so thanks in advance if you got to the end of it haha!

P.S. I know there have been discussions about NC vs SC in here before and I've read most of them, but some of them were older, and they only answered some of my questions. 

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Samara HuntleyPro Member
Investor · Charlotte, NC · Member since 2020 · 124 posts · 189 votes
5y

Hey Matt. Awesome to hear you're looking to get into real estate investing in North Carolina!

I'm a broker that works primarily with investors in the Charlotte area, and by "area" I mean the submarkets specifically as the numbers on practically anything within the city limits just doesn't quite pen out anymore. The sub markets I'm seeing the best returns in are Gastonia/Concord/Kannapolis where the prices haven't quite caught up with the growth yet. For your specific criteria/price point, I see Gastonia working out best where you can get a close to turn key (needs LVP/Paint etc.) property in the 75-100k range that will usually hit the 1% rule.

Gastonia is one of the last submarkets of Charlotte to explode, only around 20-30 minutes from centre city. It is currently appreciating at high rates as there is a 25 million dollar economic development and revitalization plan going on termed the FUSE District which is continuing to raise ARV's/rents. The Loray Mills District, which connects to the FUSE District, appreciated 11% last year!

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  • Contrarian Investor · Greensboro, NC · Member since 2016 · 219 posts · 174 votes
    5y

    Hey Matt, You have some good steps in the right direction, but still lots to learn. I’ve never owned in SC but I’ve heard about the tax you’re talking about. All else being equal, that tax would make your best price less than someone wanting to buy to live in. On top of that, single family wasn’t built to be an investment, so couples looking for a cute house with just the right paint color (which has almost no impact on financials) can pay more than you can. Here in NC anything under $150k is stupid competitive now. It’s definitely a losing battle if you want the property for cash flow. I would recommend find a mentor, someone who is today where you want to be in ten - twenty years from now, and learn from them. You’ll avoid many mistakes and compress time. Best of luck! Jason

  • Investor · Kokomo, IN · Member since 2015 · 40 posts · 11 votes
    5y

    I know in the Fayetteville, NC area it is hard to find a cash-flowing rent-ready property. Not to mention people are paying about 10% or more of the asking price for a non-refundable inspection period, earnest money, and many other things in their contracts. It is a crazy time!

    With that being said and a fair amount of experience, you could buy a live-in flip or BRRR. Since it appeared to be express that your experience is not that great I'm in agreement with @Jason E. Smith about find someone to mentor under.

    Respectfully,

    Roger

  • Dan DiFilippoBusiness Member
    Real Estate Broker · Fayetteville, NC · Member since 2020 · 251 posts · 244 votes
    5y

    @Roger Devore Fayetteville-based broker here. I don't tend to recommend my clients offer 10% purchase price in deposits. Less than 5% will do in pretty much all cases. And we pick up rent-ready deals on the order of $100,000. I find that ARV's somewhat higher than that are easier to work with, but under will look better on paper.

    Brookdale Property Management
  • Rental Property Investor · Centreville, VA · Member since 2019 · 1k+ posts · 799 votes
    5y

    I would look into roofstock.com to search for the criteria. You might be able to find something. 

  • Samara HuntleyPro Member
    Investor · Charlotte, NC · Member since 2020 · 124 posts · 189 votes
    5y

    Hey Matt. Awesome to hear you're looking to get into real estate investing in North Carolina!

    I'm a broker that works primarily with investors in the Charlotte area, and by "area" I mean the submarkets specifically as the numbers on practically anything within the city limits just doesn't quite pen out anymore. The sub markets I'm seeing the best returns in are Gastonia/Concord/Kannapolis where the prices haven't quite caught up with the growth yet. For your specific criteria/price point, I see Gastonia working out best where you can get a close to turn key (needs LVP/Paint etc.) property in the 75-100k range that will usually hit the 1% rule.

    Gastonia is one of the last submarkets of Charlotte to explode, only around 20-30 minutes from centre city. It is currently appreciating at high rates as there is a 25 million dollar economic development and revitalization plan going on termed the FUSE District which is continuing to raise ARV's/rents. The Loray Mills District, which connects to the FUSE District, appreciated 11% last year!

  • New to Real Estate · Charlotte, NC · Member since 2021 · 5 posts · 1 vote
    5y
    Originally posted by @Samara Huntley:

    Hey Matt. Awesome to hear you're looking to get into real estate investing in North Carolina!

    I'm a broker that works primarily with investors in the Charlotte area, and by "area" I mean the submarkets specifically as the numbers on practically anything within the city limits just doesn't quite pen out anymore. The sub markets I'm seeing the best returns in are Gastonia/Concord/Kannapolis where the prices haven't quite caught up with the growth yet. For your specific criteria/price point, I see Gastonia working out best where you can get a close to turn key (needs LVP/Paint etc.) property in the 75-100k range that will usually hit the 1% rule.

    Gastonia is one of the last submarkets of Charlotte to explode, only around 20-30 minutes from centre city. It is currently appreciating at high rates as there is a 25 million dollar economic development and revitalization plan going on termed the FUSE District which is continuing to raise ARV's/rents. The Loray Mills District, which connects to the FUSE District, appreciated 11% last year!

    Hey Samara-- thanks for the heads up. I actually lived in Gastonia for a little while back around 2005 and I'll periodically check it out and see what they have out there, but now that I know that, I'll definitely make it a point to check it out more consistently. The ones in that price range I've seen out there in Gastonia have looked like they needed a little more work-- Are you able to find decent deals in Gastonia on the MLS or do you have any other ways/websites you recommend to try to find some better deals out there?

    Thanks!

  • Rental Property Investor · Charlotte, NC · Member since 2020 · 27 posts · 23 votes
    5y

    @Matt Thompson

    Don't sleep on Rock Hill or SC in general. Read up on your local news, and see what's happening in that area. Cities and towns on the out skirts of Charlotte are on the rise. Let me know if you want to chat. Rock Hill is an area that I would like to get into. 

  • New to Real Estate · Charlotte, NC · Member since 2021 · 5 posts · 1 vote
    5y
    Originally posted by @Jacques Ikolo:

    @Matt Thompson

    Don't sleep on Rock Hill or SC in general. Read up on your local news, and see what's happening in that area. Cities and towns on the out skirts of Charlotte are on the rise. Let me know if you want to chat. Rock Hill is an area that I would like to get into. 

    Right on. Yeah, that'll be cool. I'm working now, but I'll message you later today!

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