New investor/Advise

[Ronnie Z.]

Hi All,

I'm a starting as part time real estate investor, primarily buy and hold (rentals). Having been around Charlotte, NC Fort Mill SC area, see it grow for few years and owning a residential property, got us interested in the real estate markets. I'm here to seek some in general and if possible local advise about some of the deals (SFR/Townhomes) that I'm considering. My primary goal is to diversify my financial portfolio with real estate assets, as Millennials own few real estate assets for retirement yield income and possibly capital gains from price appreciation along the way. Given me and my wife have full time jobs that we enjoy and see this as a part time effort, but definitely worth spending time just like any other asset class (may be more and differently here) spend time on. I have done some initial research of the South Charlotte, Fort Mill and Tega Cay markets, ran cash flow numbers for various properties that we saw and have some future assumption growth factored for price appreciation. We have narrowed down fewer newer properties in Fort Mill area because of the growth that’s happening in next 4-5 years and we live close by as opposed to Charlotte. I understand the Fort Mill/Tega Cay property taxes are 3 times higher however I still see positive cash flows. Question: Would you still consider such properties with cash on cash return of 6-7% return but reasonable 2-3% price appreciation which gives me IRR of 15%+ over 6-7 years? I don't wish to keep this property for ever due to taxes. Being new property and good demand rentals/buyers allows me start easy in the real estate space in terms of managing a property etc which eventually I think I'll do in South Charlotte area. Please advise and feel free to poke holes in the analysis. Happy to share more specific numbers that went into it, if required.