All Forum Posts by: Daniel Sellers

Sorry I missed it! 

One trick I learned from a meet up and have used. The renter can always sign a new lease voiding the old one. It just has to be mutually agreeable. For example, if the old lease didn't say anything about smoking, you could slip it into the new one. You can always approach the renters and say, here I'd like you to sign a new lease with my companies name on it etc. Now if you aren't offing them anything, they probably arn't going to sign it.

What I heard of someone doing. They inherited a tenant paying an amount, let's say $500 including utilities, with no term. The old owner had given this lady a lease that never changed as long as she lived there. market rate was something higher say $900. So what the new owner did was take a contract offer to the renter, $400 but she would pay her own utilities. This was a net savings to her, but key was owner could put it on a one year term, then change things at the end of it. 

So what incentive can you give them to sign a new lease?

NCSU students should really look at house hacking the 4/4 apartments on Avent Ferry Rd and the surrounding area. 

They usually make good rental properties, but investors are limited on how they can invest there. The properties are in a condo complex that is over 50% occupied by investors, so you can not get a conforming loan on an investment property. But you can for an owner occupied. And take advantage of cheaper rates and low down payment.

So as long as you are willing to have 3 roommates, or loose cash for the first year, these can be great. Just move every year to take advantage of the occupancy rules and you can graduate with several of them. You'll be one of the few investors able to leverage those properties to their fullest.

A couple Cons are that they wont appreciate as much as a duplex/SFH that owns the land. You end up screening far more tenants because college kids move a lot. They also trash the place sometimes. Work with someone to get a good capex estimate for them (150-200). If you are more active you can make more with short term rentals. The institutional investers only want 1 year leases, but there will be students who need one semester and only wont 6 months, and will pay a premium for the flexibility.

These are fairly low risk / low reward properties mainly bought by cash flow investors for 5% CoC, but without using much leverage.

As a resident of NC, but now lawyer, I'd say you can't do anything about the federal order. At the state level however, I think this draws interesting parallels to the "Map Act" lawsuit from a year or two ago. The state had passed a law saying one of its agencies could issue and order denying building permits to landowners in broad swaths of land (gross simplification). And after 30 years of fighting it in the courts, the State Supreme Court decided that constituted a "take" under eminent domain and the owners were owed the value of their property (plus 8% interest). This has nearly bankrupt NCDOT... then covid hit... fun times. 

Glad to see this starting again!

An investor I know back in Alabama made a similar shift. But as far as I understand his process, he built and owned the properties outright and financed the sale. Keeping the residual mortgage payments are similar to rents.  I'll try to think through it and get in touch with you are the next meet up.

@Wes Overbay That's ok. Yall stay safe. Hope to see you when this all passes.

My first time at this new restaurant. 

I should be there!

@Chris Martin "Someone smarter than me can explain how to exit off 540E onto Holly Springs Rd. going north, by turning into the oncoming traffic. I'm sure there will be a method"

A diverging diamond interchange is pretty slick. There are a few across NC, and after your drive through one, you realize it's just like a normal road but with traffic on the left instead of right, like in England. If you need more explanation PM me. I charge reasonable fees ;-)

There is also a Monthly Meetup the second Wednesday of each month. That's Next week.

Watch for the "Raleigh/Durham and Surrounding Areas Meetup" to get posted