All Forum Posts by: Chris Camuglia

We have a home in Newcastle and are going to be selling it late spring/early summer.  It is a 1970's 3 bed/2 bath on an acre of land.  Currently it is all original and needs to be updated.  I am looking for someone to provide comps on what it could sell for as-is or if I spent the money to modernize it. 

So far the realtors I have reached out to have not gotten back with me.

Any input would be helpful. 

Thanks in advance,

Chris

Hi @Henri Meli I should be able to make.

Good afternoon all,

     I wanted to start a discussion to see if this A) already exists or B) anyone interested in possibly partnering up?  I have been thinking about this for a while now since I met a few of my fellow investors back in April at Ruckus Pizza.

https://www.biggerpockets.com/forums/521/topics/55...

     I remember chatting with @Henri Meli about local deals and then he pulled up an alert on his phone on a Durham duplex(probably the same alert most of us received that day).  And I had the epiphany, most of us at the table would be interested in the same house.  And as much fun competition is at times, I knew that was not the best way to get ahead(which is really what most of us want).

     We can all agreed that the Triangle is hot right now and that is will be at least for the next few years.  So I am looking for a way to incorporate more like minded investors and possibly find a larger deal or syndication or whatever.  I keep thinking back to one of the phrases on the BP podcasts, Its better to have 50% of something vs 100% of nothing...

     I have been fortunate over the years to get passive income from having a rental townhouse/condo/duplex on the side.  And I would fully admit they were all great sources of secondary income.  One of the things that keeps echoing from BP is that that method is harder to scale.  And I would rather have more doors, so if my one tenant moves out there are others to cover the bills.

    I know if I have 100K to invest, with commercial lending I can go after something in the 400K range.  But as we all know, they are no Multi-Family's in that price range here.  But if there are 10 of us with 100K each = 1M, then that is the potential of 4M for an investment.

So this post was really reaching out to start a discussion on what is out there locally and who else may be interested. 

Thanks for you time,

Chris

@Benjamin Rogers Do you mind providing a little more detail about the actual Auction.com process?  First, as far as the house goes, was it one of the properties that you could only do a drive by?  The one thing that worries me about the auction.com / local courthouse process is you really don't know what you are getting.  You can drive the neighborhood and get a good feel, but don't know if the house is trashed inside.

     And second, what was it like as far as the paperwork(process) goes?  I have seen various posts about the process with auction.com dragging out and taking months.  Or in some cases people getting the run around.

Thanks,

Chris

@IsiahF

The 6-8K range sounds high, especially on the size of the unit.  It would be worth it to shop around and you should be able to get it in the 6K range.  I just had both my units done in 2015 and the total was around 12K and that was including upgrading one of the units to a 95% HE rating.  Also since you are in NC and possibly use Duke energy you can get a rebate.  Every little bit helps. I went for the SEER 16 models and not that it helps you so to speak, but the electrical consumption goes way down.

https://www.duke-energy.com/home/products/smart-sa...

@Janel F.

The whole due diligence thing came about in NC after the financial crisis.  So normally, when there is an offer there can be a DD fee (usually a couple hundred dollars) that corresponds to the inspection date, so a few weeks out.  Then you have the larger 1-2% earnest money fee that normally has the closing date associated to it.  So, as you said if the closing drags out or such you have the possibility of loosing that(earnest money).

Chris

@Nick Graham

Welcome to BP.  I live in Raleigh and have experience in both the Triangle and Wilmington Markets, having lived in and owned property in both.

You definitely have to shop around for the property management and their associated "fees".  I had used Block and associates in Raleigh years ago to find a tenant.  Their costs were one months rent to fill the vacancy.  And then they wanted 8%/month to management (if I went that route).  But living in the same city, that service was not needed.  Additionally, the tenant was interested in buying after a couple of years of living there, so there would have been a 2% brokerage fee if I sold to them.

In Wilmington, I use the company Atlantic Rental (since I am remote).  And they just charge me a flat 10% cost of the rent.  I like this flat rate in general, but especially when it comes to turnover.  If it is empty, they don't get paid, so there is a motivation factor on their part. And I have never gone more than a week for turnover.  And this is usually because of repairs/cleaning

Chris