All Forum Posts by: Chris Hall

Trailwood realty, @Dawn Brenengen have managed mine in Raleigh, and I’ve been very happy. Would highly reccomend.

My actual rental rate increases for one of my SFR's in Knightdale have been about 2% since 2016. If I had not lost a tenant right before covid hit I would have been able to increase rent by 5% this year in my particular neighborhood (instead I settled for 2% just to get someone in during April/May). It all varies across the triangle neighborhood to neighborhood of course.

One thing to note though, property taxes increase with the value of your home as well. I've found that rental increases have pretty much been cancelled out by my property tax increases. Something to consider when prices are rising (the books don't often remind you of this)

Yeah I would second what @Mitch Miller said. The better value here would be to find something closer to 200K that maybe you could fix up a bit more or convert a 3rd bedroom (maybe previously unpermitted space etc). Moving to $250 would probably get you a "bigger better" house, but the rate of appreciation would probably be the same, so you'd actually get a higher return on the lower priced "value add" house. This is all theoretical, but that's what I'd look for if I were house hacking.

So Trevor was this in the Raleigh area? or texas? 

And while I'm in a question asking mood, what was your rehab budget? and what kinds of rents are you getting now?

A great idea. Yes there is good appreciation here, as economy is growing. In the southeast areas I think you could project 4-7% appreciation as long as Covid-19 plays itself out in a year or so (if not, then its obviously a whole new ballgame). The problem is that there are very few small multi's on the market (especially so in the southeast areas). You could try and find something larger and do a househack/rent by the room situation. That might work a bit better. Plenty of universities here to make that viable. 

I'm in Knightdale and have two rentals here. It's growing solidly. Been getting about 5% appreciation here, but it can fluctuate neighborhood to neighborhood around here. Rents are lower though as the schools aren't in the highest demand. We live here though (and have kids) and haven't minded it one bit.

Well in my case, its more of "invest in what you know" at this point. And I know this side of town, so they're all knightdale properties. But I'm looking at garner, wendell, south raleigh, clayton, and rolesville as next possible investments. They're more "in the path of progress" towns... as the burbs get bigger. Chapel Hill and Carrboro would be awesome, but I don't get over to that side of town enough to really get a good feel for the neighborhoods and price points. I should though.

@Steven Griffith Hey Steven, awesome, thanks for being willing to share those numbers. Yeah that really clears things up regarding the "all in" cash and reno costs. But to your point, when all is said and done, you're right at the 1% rule with the apartment in the basement added in! So really well done! (and in your location I think you're gonna ALWAYS have tenants so this should be a slam dunk long term). 

Yes things are SO hot right now in the triangle and everything seems to move so fast on the market, that to get a deal like this under your belt is fantastic. Personally I work an unrelated 9-5 job every day, so as I've been transitioning from a more turnkey approach to trying to find BRRRR's or major reno's, its been a bit difficult to find the time and availability to respond to deals fast enough when they hit. They are there, as you've alluded to, it just takes some serious hustle. Well done.

Hey Steven, congrats on your deal here. I'm going to poke a bit at your numbers with a few questions, but even with those, it sounds like this was a great "value add" deal, so well done. My questions are:

1) What was the total cost of the renovations needed for everything?? I have a feeling that after those construction costs are added to the purchase price of $240,000 you're probably at or below the 1% rule once you add those in? Again, just poking a bit here, but I'm genuinely curious.

2) Was the "$20,000 total cash invested" listed above your actual "out of pocket cash?" or does that include the withdrawn funds from your heloc? 

3) Is your heloc an interest only payment heloc? What would the heloc payment convert to after the 10 year draw?

I've got a heloc on my primary residence and am about 3/4 of the way through the approval process for one on an investment property I own as well. I never really considered using the funds as a downpayment, but have generally just though of them as temporary funds for BRRR'ing and then refinancing out of it. Sounds like you used a combo here, so its an interesting thought.

very nice. good rent ratio for that part of town