All Forum Posts by: Account Closed

When the market cycles down again, I will continue to collect rent. I will also ramp up the buying. I see down markets (both in RE and stock markets) as opportunities. This is why I make sure we have reserves to weather the storm(s) and keep saving/increasing income so that we can take advantage of opportunities when they pop up. 

@Keith N.

As rare as they are, some multis do exist in clusters in Cary within your price range, although you might need to put in a bit of work yourself - sounds like you're ok with that, though! 

Here are a few that just sold/under contract recently (same investor seller). I had these in my favorites just to see how long before they go under contract & sold and at what price:

Cary Duplex Rainbow Court

Cary Duplex Rainbow Court #2

Cary Duplex Rainbow Court #3 - Under Contract

So - keep looking. Set up alerts on Redfin/Zillow/with an agent - keep on top of the MLS and be ready to go look at the property when they pop up. Get a pre-approval from a lender first, so you can be confident with your borrowing power during your search.

Also - drive around in the areas you like that have multis - like Rainbow Estates above - and take down addresses and maybe send a letter to the owner(s) - look them up on the county records. At best, they might respond. At worst, they will ignore your letter or tell you to not send them anything more. 

There are a ton of investors in SE Raleigh. You can probably cash flow better there on paper than most areas, but it might require more effort on your end. Key phrase is "on paper", please do your due diligence and talk to investors that have or have had properties in that area.

You might also want to consider the upper part of Garner - that will put you close to the city, as well.

Good luck!

I don't build...yet. Therefore, I don't have any personal pictures to show. Although I am currently looking for a few lots to build on :)

In the next rehab we will be doing (in contract, so hopefully just a few weeks away), I am considering white cabinets with brass hardware/fixtures and SS appliances. However, my broker recommends traditional finishes (broader appeal) and my husband cannot get down with brass (but he's not going to live there, so...). Plus, the same faucet in brass is so much more expensive than nickel/chrome/ss! It all adds up...which might be ok for million/multi-million builds - but for the regular spec or flip, it can be costly percentage-wise. 

The brass/white appliance combo won't apply to traditional homes. I'd say they go with more modern homes with modern finishes, more minimal lines and less angles to really let the brass bling and white lines shine through. That combo will work for lofts too since lofts toe the line between modern & industrial. 

It might not be mainstream at the moment, but with so many retailers on the bandwagon now, it's tough to avoid. A lot of people might start the brass movement with a light fixture here and there, see how they like it after a while, then discover they might like it elsewhere (like the kitchen/bath). But if the buyer base is more traditional like my husband and sisters - they just won't sign up for brass at all - not in the modern brass way. I still see the 80s builder brass-finish out there.

If you have not seen it yet in the market, maybe you can be the maverick and be one of the first to step out! :D

If I were a retail buyer, I would notice the difference between the two lines for the fridge and range. Not so much for the dishwasher and the microwave.

Maybe because I am just a fan of French Door fridges and Slide In Ranges normally and my eye is drawn to those.

I'd mentally note the differences in the appliances, BUT it would not affect how much more/less I would pay for the property.

What is your plan? How many properties or how much return are you aiming for, overall?

Personally, we keep saving until we accumulate enough in our investment pot. Meanwhile, I continue to keep a very close eye on the market and the properties that come and go, so I can keep a finger on the pulse. 

It's not much fun to pass on potentially good buys due to lack of funds, but I believe passing on a few potential buys is way better than being overly leveraged and being caught with my pants downs in an inopportune time. 

One of the reasons some folks seek out creative financing techniques is to overcome the lack of funds problem. I think being able to structure creative financing with minimal $ out of pocket is an incredible asset as an investor (takes a lot of skill and knowledge). It's so tempting to try because who doesn't want infinite or an incredibly high rate of return on their hard-earned cash?! 

However, I believe most of those techniques are best suited for folks that have the wherewithal to take down the deals with or without creative financing with minimal $ out of pocket. They do these minimal $ out of pocket deals because they are purposefully seeking a very high rate of return, not because they HAVE to and can't afford to do the deal, otherwise. If anything goes wrong, they still have the funds/resources available to cover any surprises. 

That said, do you already have an emergency fund set aside? Also, reserve for the properties you already have? Those two pots should be nicely full before money goes into the available capital for investment pot. 

You said you're a bit older (I guess that's relative :) ). I would think that the closer you are to retirement (not saying you are, but in general), the less leverage you want out there. In case some things go bad, it's harder to recover when time is limited. 

Even though you already have a W2, you might want to explore ways to increase your income and/or decrease expenditure in order to expedite the down payment savings. Freelancing of some sort? Part time agent? Etc. 

Best of luck to you!

I'd be happy to share any info I have. Feel free to PM me!

@Chad G.

Hi neighbor!

Always happy to see more NYers here. I think it's a great idea to pay off school/car loans first - will always look better in the lenders' eyes.

In terms of your choices for your next move - I don't think you can go wrong with Raleigh, Denver nor Austin. Since your company already has an office in Durham - NC might be a better option, especially in the beginning.

Best of luck!

@Elijah Batkoski

I love brick homes. Good luck with your inspection! Even though you will not use a PM this go around - are you, nonetheless, accounting for PM fee (8-10%) in your cash flow? At some point in time (when you acquire a good amount of properties), you might switch to using a PM to free up more time and to streamline your overall process.

@Matthew Saskin also -

I love that Zebulon has a good amount of land and still relatively spacious compared to Raleigh itself and further west & south. Although I'd like to live there myself on a couple of acres - what do you guys think of the future of the town? Will schools get better? Any new communities coming up and what is the absorption rate?

Happy you both are finding success out there...keep it up!

@Elijah Batkoski

Congratulations!

How old is the house and which town? Did you get an inspection yet? Septic/well? If septic, definitely get a septic inspection, as well.

In terms of the cosmetics - do you have pics? In addition to the regular painting and flooring, are you also doing windows, kitchen cabinets, counters and baths?

Will you use a PM? If any case, it might be a good idea to do some landscaping first, then put up a Rent sign in the yard. Get some interest going while you do the cosmetics, which should not take too long.

Best of luck and keep us posted on your progress!