Charlotte Investing and How to get in to the Market?

[Cooper Sewell]

So I get out the army in 15 months and am trying to get a investment property in the Charlotte area. Right now I was thinking about a multi-family property. But the market in Charlotte right now is expensive and doesn’t t net cash flow with long term rentals. So I came here looking for some ideas about how to get in the market and how to net cash flow?

[Ryan Thomson]

@Cooper Sewell if it works for you lifestyle I would use that VA loan and get a fourplex for 0% down by house hacking it.

You mentioned cash flow. Here is my opinion on cash flow with house hacks:

House hacking is tough to cashflow in year one (with current house price run-ups and interest rates) for a couple reasons:

1. You are living in one of the rentable units

2. You are only putting 5% down so your loan amount is much larger and therefore your mortgage payment.

I would consider your net worth ROI. What I mean by this is considering how much your down payment returns to your net worth (appreciation, loan paydown, tax benefits, AND rent avoidance). Don't forget to include rent avoidance in your numbers! You have to live somewhere.

You may need to lower your return or cashflow expectations so you can get into a house hack that will allow you to avoid throwing rent money away every month. You know this, but don't forget all the other ways real estate makes you money. Paying down your mortgage and owning an asset that will appreciate over the long term.