All Forum Posts by: Antonio Montgomery

Im selectively looking at SFH tough to find a profitable price point in the top school Districts

SFH w/ a niche. I have to have a 2 car garage, min 1750 sqft, under 30yrs, I weighed top school districts. Look at avg sell price/sqft ratio. Then I take a minus $10 as my discount. Bigger markets im looking for bigger discount. Then the investor in me applies the 1% rule.

Also being a Veteran is huge.. If you get 100% va disability or KNOW somone that does. After 1st yr they cam apply to have property taxes wave/exempt. In NC there is a tax exemption on the 1st 45k ... They shot down the 100k tax emption. The bill didnt. Pass NC Legislature

 Exactly, I relocated from Durham, NC.. Avg listing/sqft in Raleigh is around $152 sqft. My home in fayetteville is nearly 2100 sqft priced at 77sqft and its a 4bd at that. A similar property in North Raleigh, Cary, Apex $350-$380k before interest... Imho I left 2-4yrs early. Btw yoy homelessness rate in Raleigh increased by 8%. This will be a huge political issue if this is not under control soon.

 I closed early on 2/11/19 pull up 5753 bear creek circle fayetteville,nc... Sellers LEFT me a riding lawn mower, a king size bed, nice couch, a plethora of scotts lawn care including two feeders. A year worth of roundup supplies for lawn care. I gave them their ask of 159k they brought 4k to close. Im only out the pocket little less than 2k. Why am I sitting between homes that will likely fetch 250k is beyond me. Also Currently properties in this neighborhood. The Pristine ones nobody is really selling. Im only the second homeowner to this house. There are a lot of original owners and 2nd owners. I couldn't be any more happy, well not til I sell this for over $200k

FOR tax purpose sfh listed as 3bd/3ba. On mls its 4bed/2bath does this impact comps/appraisal.

Also sq.ft above ground. Im not counting. If a neighbors home has more above ground living space, but has minimal garage space or 1 less garage space. Whats the total or percentage an appraiser would consider giving/taking away.

I say bring it on. From an Asset Mg/portfolio side im ready. I live poor and think rich. Im renting a 1bdrm duplex in Durham,NC $515 a month. Waterbill is $16 lights economic plan $69.50... Car pmt 250.00.. 

There are savy business people with cash and good credit. Think bitcoin, oil traders, 401k accounts up nicely.. Buyers are looking for discounts.

I

You have a plethora of Options. My old Landlord Fred Batts "RIP" owned 16-17 properties before he passed Late 2015. Whiled I worked at IBM, I was commuting from Wilmington. He allowed me to pay $320mo/$160 every Two weeks for 1.5yr.. He rented out his rooms. I didn't stay on the weekends. I would leave every Friday back to Wilmington, and drive in Monday evenings to the house. Almost a bed & breakfast. I had access to washer/dryer, bathroom and kitchen. It was a 4 bedroom house, 2 bath. He initially had a property mgr living there (married couple) . and he rented the 3 back rooms out. Everyone paid weekly $125... he got over $1900 a month.

There are a lot of commuters and travelers. Airbnb killed the bed and breakfast. But its a Real estate Niche I see in Raleigh. 

Thanks for the reply and professional criticism. There were some details left out. I did go to rentometer and zillow prior. The average was $1246 for 8 properties in 3.5mi radius. Property is in an older established neighborhood of homes $200k -$190k range. 

VA loan 0 Down. Sellers Bringing $4k close. I have a 1k + inspection fee. Lender waived va appraisal... I'm only looking at $433 cost to close.

Im going to live in the property for 1 yr before renting it out to get increased value. Since There is a premium for this older neighborhood.

Thanks for the detail explanation and cash on cash breakdown. 

I'm in the process of closing on a 4BD/2BA/2 Car Garage in Fayetteville. Its not in Jack Brit School District but its located in the Beaver Creek Development and the neighborhood is pristine. I'm in the buy & Hold camp. The cap rates on 4 Bed Rooms are over 20%

Current P&I $841.44 + Taxes/Ins $310 =1,151.60

My realtor ran a Market Analysis, Real AVM came in at 176,150, Real AVM range $156,774-195,527

Using Standard .80-1.1% of home value to determine rental at min of .80 I get $1408.00 (used 176k avm)

PITI 1151.60x12= $13,819.20 annually

Rental Rate $1408.00x12=16896 - 13819.20=3076.8 profit

3076.80/13819.20=.2226x100= 22.26% ROI

The home doesnt need renovation, It could use an updated dishwasher. The items conveyed in the transaction could be replaced. As is the home is move in ready.

The high end value of $195,527 using 1.1% of home value give me a rental rate of $2145 with my PITI only 1151.60

PITI 1151.60x12= $13,819.20 annually

Rental Rate $2145x12=25,740 - 13819.20 piti=11,920.8 profit (which is 86% of my annual PITI paid out)

11,920.8/13819.20=.86% ROI

My question to the experts, at what Cap rate would you forgo additional repairs/updates. Or is it best to do it as you go. Likely w/ updates/repairs I could push for Max avm rental with the home being around 195,527