All Forum Posts by: Chris Hall

@John Baker Looks like a nice SFR in an appreciating area for sure. What are you getting in rent on this guy?

Hey @Connor Riddell I moved from Pasadena, CA to Raleigh 5 years ago. Haven't regretted it at all (although there's plenty i miss about southern california). Welcome to the neighborhood.

@Robert Russotti Well, I buy and hold too so clearly there's room for it all here. Let me rephrase, I should have said its more "conducive" to flipping due to higher price to rent ratios and greater appreciation.

I think it also depends on what your definition of a good "cash flowing" market is. My rentals cashflow for sure, wouldn't have bought em if they didn't. But just from a market perspective, Raleigh isn't a Birmingham Alabama, or an Indianapolis, or even a Fayetteville, NC , where good cashflowing SFR's can be found even on the MLS with some digging (not saying appreciation is great in all those markets, but overall cash flow is better just do to higher Rent to Price ratios). Sure, great deals ares out there here in Raleigh, they just aren't the low hanging fruit that they can be in other markets. That's really the generalization I was trying to make.

@Michael Sherwood Nice to see a fellow western new yorker looking to invest in Raleigh (I'm originally from Jamestown, NY but live in here in Raleigh now). @Dawn Brenengen is the best. she can fill you in far more than I can as she's helped me on multiple deals now. 

Basically my two cents: cash flow is tougher around here as rents are usually around the .7% - .8% rule (impossible to find a "1% rule" without serious rehab anymore). Appreciation is solid as the economy and jobs are still expanding (so far so good, even w covid). Expansion is forcing people to the "burbs" so expansion is happening in smaller towns outside of raleigh (garner, apex, holly springs, wendell, knightdale, wake forest, rolesville, etc). Small multi-familys (2-4 units) are really hard to come by here so SFR's dominate. Its a great market, but I would say flippers have an edge. Would be interesting if some of the larger multifamily folks could chime in on that side of things.

Alive and well in Raleigh. : )

thanks for this @Sean H.! good article. I have two rentals and a primary residence in knightdale, and I can attest to this growth on this side of town for sure. Thank goodness we get this appreciation as rent cash flows can be less than enticing at first glance in the Raleigh area at least.

@Joshua Stewart Well dare I ask if this was completed and rented out? A lot of us here in the Raleigh are considering this in the future if the ordinances ever pass. Would love to know what the final outcome was!

@Sean McCluskey @Jermaine Artis I'm sorry, jermain you're correct, the Heloc I currently have is on my personal residence through coastal and it goes up to 90%. My fault, I misunderstood. I'm gonna assume the investment property is capped at 80. When I was referring to 90% above sean, I was referring to to tapping 90% of those heloc funds (so 90% of the available credit on the heloc). 

It appears @Todd Rasmussen is correct, when you run a credit score simulation and you add a new heloc as a mortgage and increase your credit capacity as well in tandom, you're score does not drop the way I had seen it when I had run the heloc as a simple credit card before in previous simulations. This appears to be my mistake in understanding how heloc's are calculated. But I'm getting educated on all counts here it appears. : )

Coastal Federal did (before the Covid19 outbreak atleast). Not sure if they would still do it now though. Their rates go higher above 80%, but they'll do it for local properties in the Raleigh area at least.

@Todd Rasmussen

Current LTV on both properties is 60-65%. Tapping each heloc at 90% would give me about 150K to purchase a property in cash, would rehab with personal funds, and then refinance. Obviously the deal has to make sense and the property has to cash flow immediately, can't be reckless about this. Whenever I use a credit score calculator though, my score drops greatly when I add up that much more debt even with the addition of more credit... are heloc draws treated differently than a typical credit card? I'm hoping so...