All Forum Posts by: Chuck King

I thought about that but with the extra investment capital, wouldn't selling and reinvesting maximizing my earnings?

I am currently in the process of a cash-out REFI on my current residence and will be closing on another property shortly afterwards. My intentions are to flip said property. Here is where my dilemma arises. I currently live in a double wide manufactured home. I own the property free and clear.  The house recently appraised for $62,000. Once I flip the other property I am purchasing, should I sell my home and purchase another? I feel like living in a double wide I am not getting the most bang for my buck in the long run due to depreciation coupled with banks not wanting to loan money on them. I feel now may the time to sell in order to maximize my investment.  If I was to move, it would be into an undervalued/distressed property that I would remodel over time (i.e. house hack). The areas that I am looking in are exponentially better areas for real estate investing  than where I currently reside both now and in the years to come.  Also if I do move what would be the best way to approach my decision from a tax stand point?

Thanks for all of the input. I have passed on quite a few homes that would definitely hit 2% because I knew they wouldn't rent or hold tenants due to them being in lower class neighborhoods. When I started this whole process I knew that was one thing I wanted to avoid. I prefer spending slightly more to secure occupancy/returns or at least that's my theory. 

Welcome to the community. 

@Justice Cannie If you don't mind me asking. What do some of your typical numbers look like? 

I have my real estate money in a separate account; granted I am very new and only dealing with one property at the time. I will probably open others as I diversify. I know my parents would have separate accounts for properties depending on ownership structure and property location. For the properties that were owned out of town, they typically used banks local to that area. Hope this helps a little. 

Thanks guys. Yea I was told to expect about .7 to .8% but right now I am in the process of purchasing a property that I feel like would get slightly above 1% but I'm not sure how the vacancy rate is going to be.  I plan on doing the renovations and trying to market it as an investment property to other investors in my area. I do not think I want the hassle of the location.

Are any investors in the Charlotte, NC area having trouble getting between 1 and 2% of purchase price for rent? Reason I ask is because I had a conversation with someone recently and they thought I was insane with expecting 1%. Also, can anyone give me some insight on local cap rates. Thanks In advance

That looks awesome. A pop top is definitely intriguing. I am curious to hear how you approached the evaluation of the property and decided to do a pop top. 

My family has been in the HVAC business for over 40 years and as a family owned company we do not offer annual service aggreements. The reason we do not is because we feel that, although they can have their benefits, it is a means to keep the cash flowing during down time. As David and Alex mentioned you should definitely clean the outside unit annually, change the filters monthly, and ensure drain lines/pans are clean. Parts, especially electrical components, go out and somebody looking at your unit annually probably will not prevent that and odds are a service agreement will not prevent you from incurring these replacement cost.