All Forum Posts by: Alex Smith

Hi all,

I am located in North Carolina and am looking to have a builder build new construction and then I sell it once complete. I have a vacant lot that I can build a 1200 SqFt house on. The custom builders in the area are very competitive and are offering pretty inexpensive builds vs comps.

If the lot was purchased recently for 20K and the turn-key cost to build is $200K, after I close on the house (bank said appraised value would be 220K), would a new buyer have problems with it getting appraised over $220K even with other comps selling for 300K+?

After the build, I hope to list it for $300k.

Good afternoon,

I have an opportunity to purchase a few off-market properties without the use of neither a selling or buying agent. I wanted to make sure I am not missing anything from the administrative side.

From the purchasing side, I think I need:

Initial Purchase Agreement - Could someone share a purchase agreement generator that they use?
Survey - (I'll hire a local contractor)
Inspection - (I'll hire a local contractor)
Title Search - (Real Estate Lawyer)
Settlement Statement - (Real Estate Lawyer)
Real Estate Transaction Contract - (Real Estate Lawyer)

Cash close, so I don't think an appraisal is needed.

Am I correct in this? Are there good legal networks to use to lower the cost of these real estate transactions?

Any other advice when not using a realtor? 

These are my thoughts as well, but then I do a quick search on these forums and people have been saying, “a crash is coming” for the past 3 years. I would hate to have been waiting on the sidelines for the past 3 years. 

Hi all,

I am one of those who think there is never a “bad” time to buy real estate, but there are very difficult times.  I have always thought that the key to real estate wealth is through long term appreciation. 

With that being said, I am stunned by the rise in housing prices. My strategy is simply to purchase a SFH in a popular vacationing area to generate income through a STR.

Deals are incredibly hard to find unless it needs major rehabbing - which brings out of state, is not something I will be able to do. People know what they have and the inflated prices show it.

What are your thoughts on purchasing "turn/key" properties in this market for STR? Is it a horrible idea?

Hi all, 

Could someone advise if I am missing something big here? Does it ever make sense to hire a builder to build new construction(modular) just to turn and sell it? If so, why wouldn’t the builder just be building and selling it himself?

In researching my local market, I have found multiple buildable neighborhood lots in rural areas for around 25k. There are modular builders here that claim they will build a 1600 sqft house for around 140k. After site prep, tap fee, and various other misc items, my all-in cost would be a little less than 200k

That same size, but older houses, are selling for 235k-245k very frequently here. I'm looking at least 35k before taxes if I FSBO.

Thanks

I have purchased a vacant lot in a neighborhood that has an inactive HOA. The residents are not paying dues. In the early 90s there were covenants and restrictions that were filed with the city and it states that the only style of exterior allowed is brick, stone, or wooden plank. There are about 20% of the current houses with vinyl siding. I would like to build a house there with vinyl siding. Who do I need to contact about approval for this? I called the city zoning department and they said that they do not make those decisions for residential location.

Any ideas on how to approach this?

Greetings all,

I am located in the Charlotte NC area and am wanting to build a portfolio of rentals. I only want to purchase single family, turn key or properties with minimal required repairs. This area has had houses that were 150k in 2015 appreciate to 200k as of this month. Most would call it a sellers market now, but who knows if values will continue to increase.

the price of houses in my target area would be between 150k and 250k and it would be very difficult to achieve the 1%. Most of my estimates look to be closer to .75% of purchase price in monthly rent. The only time the numbers work to the 1% is in very low income areas.

 I am trying to get a better understanding of the value/equity of houses. For example, if I buy a house today  for 200k, and 5 years later it increases to 250k. most people would say, “great, I made 50k.”; but, in order to capture that money, I would need to sell the investment house and do a 10-31 exchange. In order to continue with the rental income, then obviously I would need to purchase another property. The problem is that All properties in an area are relative in value, so when I would go to purchase another house, I wouldn’t actually gain anything because it would cost just as much to buy another house as I just sold the one for. 

So if a house will cash flow, does a house price even matter when all houses in an area are so closely priced? 

I am actively searching for a rental property investment in the Charlotte, NC area. As much as I would love to do the BRRRR tactic, I am not confident in my rehabbing abilities and am just looking to go with either a ready to move in, or one that needs minimal repairs. I am only looking for houses newer than 1980 to avoid any lead paint issues.

Anyway, I have read much about the 1% "Rule", but there just doesn't seem to be any houses that could qualify for that due to the prices. For example, many houses are going for 200k, but only would rent for (Maybe) $1400.  Is anyone else experiencing this? The best deal I've found is a 160k house with a rental potential of $1250. What are your thoughts on this?

@Jim Peterson

I am in the Charlotte area as well. What is the company you had quote?

@J Peterson

I am in the Charlotte area as well. What is the company you had quote?