All Forum Posts by: Christian Hansen

Another thing to note about Durham is the local govt is very Tenant friendly. It has a different flavor than most of the rest of the state in that respect. So if you are looking at buy & hold investment make sure you understand the local regs and keep the place in line with codes etc. 

I will also underscore what was said in the post that the neighborhoods are spotty, you can have a big new construction house and then next door a run down place with sketchy tenants/visitors. You have to go look in person especially important for LD investors. 

@Jay Wang Hi, I would echo what others are saying, that a Raleigh investment has more room to grow. However, your question seems to be only focused on appreciation which has been great in many areas but is not guaranteed for the long run. There are many factors outside of your control that could affect it. I think you need to consider  what @Garratt Brannock asked - types of props and what returns are you interested in, which refers more to the rent income vs. just appreciation. 

@James Honeycutt  Hi, congrats. I was about to mention what @Bud Gaffney stated. Its probably too late for your first sale but before you close on the second sale consider doing a 1031 exchange so you don't give away as much of your profit to your employer(Uncle Sam). Especially since you know you are planning on buying "like kind properties" aka other rental investment properties. It's not complicated and well worth it. Greensboro does seem to be growing, I'd advise buying decent properties, B-class they will stand to appreciate more and will have less headaches. For 1031 reach out to @Dave Foster he is an experienced 1031 intermediary with a solid co. behind him, he's helped me before with this and is still my go-to source for 1031 questions. Good luck.

@Suzanne Player  I absolutely agree that it excessive but that is what is going on now and seems to be continuing, also $2000.- is low. For particularly hot areas $10K is not uncommon. Until the supply increases, demand declines or stories emerge of people getting seriously burned I don't think it will change much. Because buyers are so desperate to get a house under contract their agents are suggesting the high DD$ to get the attention of the sellers. I am not maligning the brokers they are simply telling the buyers what their options are. It's a very clear example of free market dynamics. 

Hi Dwight, Yes its not as it used to be but I have shifted to looking at properties that need more work so I can do some forced appreciation but still have rents cover the monthly costs. I think the renovated property gets a bit more rent. I also try to focus on areas that still have further appreciation potential, so props close to Raleigh or other appealing areas. I guess it's less of a cashflow play in the short term and more appreciation driven. In the past I was not as motivated by appreciation but its hard to deny its happening in a big way around here. That said rents have come up significantly and some of the rent prediction sites haven't really kept up. You might be surprised what you can get. 

I read this thread and saw your comment @Wayne Brooks about the EM & DD being subject to inspection etc. I don’t think anyone mentioned it here but in NC your DD$ is like your Ante in a poker game, you do NOT get it back! It is really an option fee that you pay for the right to exit the contract within a set period of time for any or no reason. But you don’t get it back! That is why it’s a big deal that people are paying $10/20k+ in DD. It used to be ~ $500.- for a nice house.

Yes thats reasonable, but as with all jobs be VERY clear about what the expectations are at the end. Scope of work, ie: surface should be totally smooth, paint quality?, cleanup - will they make sure everything is covered so theres no spills etc. It all seems like common sense until the end of the project and sometimes it isn't. Theres such a wide range in quality of work these days so just make sure you feel like you are all on the same page. BTW, Theres paint shortages so confirm that they have a good source even SW has been tight on some of their products. Good luck!

Hi, I basically did what you are talking about but had worked at a PM co. years before and I got my NC RE Lic first. Then you still need a BIC (Broker in charge) for any Firm to operate in NC. I have to second what Nathan G. said above, if you want to be in Legal compliance then coming to a discussion forum is not the place to get the info you need. It is the NC Real Estate Commission. To just jump in, it is certainly doable but...man, buckle up cause it will be a bumpy ride. Make sure you have the right insurance, understand trust accounts and fair housing regulations.

Nathalie,

I had a fantastic experience (well, as good as a Septic experience can be) with Richie from A&R Enterprises 845-742-8576, reliable, trustworthy and very fair price!  I went through 3 different companies and he was definitely the best!

Good luck

Hi, it's good to analyze, but it sounds like the particular areas you are asking help with are determined by the specific property(condition, age, etc) and the area/neighborhood. Tough to know all of this from just a listing. You won't be able to know all the ages of the systems in a home and even if you do, new systems can also fail. My advice is don't get so hung up on trying to know every number, you never will and you don't need to. I would focus on making sure the deal is gonna cash flow or at least not be negative cash flow with a 15%(of gross rent) margin for CapEx but you do need to have some $ stashed in case that big expense happens on Day 5 of owning it. Put the 15% aside each month and build up a reserve and you don't have to let possible future issues deter you from pulling the trigger. Even if you lost $10K on your first deal the experience would be well worth it, that said I doubt you would if you are paying attention even a little bit. Now go buy something ;-).

Good luck.