All Forum Posts by: Dave Olverson

I am ready to start real estate investing and add to my portfolio of 2 SFHs. I have confirmed that I will be moving to the Durham area in 2017 and want to dive into that market (already done a lot of research).

However, I have been putting off doing this because I am currently unemployed (startup company ran out of funding).

Is this reasonable, or am I running into limiting beliefs that won't serve me well. Is there any way to get a long term loan without a job? What if I have the money in my accounts to cover the whole loan if need be? I fully expect to get a job relatively soon, but I always assumed that banks will only care about the unemployed status.

Here are the rest of my details and what I am trying to do:

Option 1: Look at something in the 50-60k range that needs 30k of work. I'd want a 30 year loan on the whole shebang (I would want to keep my exit strategies open to sell it right away or rent it out for the long term).

Option 2: 150k range with 50k of work. Same basic setup, but would need more money. I still can prove I have enough money in the bank to cover this loan, but I'd feel a little out of my comfort zone in terms of risk (but maybe that's a good thing).

So, being unemployed, do I have any options to get access to capital amortized over 30 years, or at least 15? Or was I right the first time - I need to wait until I get a new job...

Thanks!

Hi @Account Closed - I am currently in NYC and have a couple of SFHs in Indianapolis. However, in the coming months, I plan on looking seriously at investing in Durham and in a couple of years, I hope to move there full time as well. Happy to connect and stay in touch. I am currently doing a lot of research on Durham specifically.

@Rick D. - Welcome! I am also interested in the area - specifically Durham (I see a great deal of potential in Durham's growth).

I currently live in NYC, but am planning to move to Durham in 2 years and potentially purchase a few SFH's in Durham before I get down there. As a result, I have been doing a lot of research on the history and neighborhoods in Durham. I still have a long way to go, but if you ever feel like chatting about Durham, let me know!

@Jamie S. Thanks for getting into the nitty gritty/specific locations and prices! This is great info.

@David Miller Very interesting tidbit about Hope Valley - I did not know that it doesn't have an HOA. Thanks!

Thanks @Jamie S.

The public school system in Durham is definitely a concern and even though I don't have much of a background in education, something I would love to get involved with in terms of helping to improve once I get down there (we will see how that all works out!)

My understanding is that areas such as Hope Valley are pretty expensive. Are you able to find good deals there and do the cash flow numbers work out? In most markets I am used to, when you get into the much nicer range, higher purchase price starts to drastically outpace the increases in rent.

@Randy E. This is awesome - thanks for the insight!

Other than Albright, are there any neighborhoods where you do most of your looking? Maybe neighborhoods that won't necessarily benefit from the appreciation/growth of Durham AS much, but currently have good cash flow opportunity and are more in your price range?

Recently, I have been doing some research on the neighborhoods of Durham. As someone who doesn't (yet) live in Durham, I wanted to share my thoughts on the different neighborhoods and let people:

a) tear apart my thoughts if they are incorrect and

b) share their own thoughts on Durham neighborhoods!

Here's are my notes so far:

• Duke Park & Trinity Park - Seems like these neighborhoods have already "arrived". Really good neighborhoods, but properties might be too pricey and deals might be scarce here.
• Cleveland-Holloway - Currently "arriving" - could be some good deals to be had, but who knows for how long!
• Albright - Might take a little while longer, but given proximity to Cleveland-Holloway, could be the next up and coming neighborhood.
• East Durham - REALLY hit or miss. This could eventually be up and coming, but even more so than the rest of Durham, the landscape drastically changes block-to-block. This is a more risky area for investing
• Forest Hills - Another nice neighborhood on par with Duke Park and Trinity Park, but MAYBE there are still some deals to be found here?

I'd love people's thoughts on these neighborhoods as well as neighborhoods that are a little further away from downtown. Where do people currently invest and what neighborhoods do you focus on?

I am especially interested in a few questions:

• What neighborhoods have good cash flow? A lot of the downtown neighborhoods I assume are good appreciation plays, but there must be neighborhoods further out that are good cash flow opportunities.
• How do people feel about the Warehouse District?
• How do people feel about Watts Hospital-Hillandale?

Thanks for playing!

Hi @Randy E. - my plan is to move to Durham in 1-2 years and I am doing research on the area (although in 1-2 years the market might be EVEN tighter than you describe).

I'd love to get your thoughts on the neighborhoods and price points that you look at, if you are willing - happy to do that here or via DM.

I figure it's at least good to connect and pool resources with people in the Durham area for the time when I do move down there!

Haha - Thanks @Randy E.

The plan is not to be an out-of-town investor for too long. Looking to move to Durham in about two years - what a great city!

Hi @Nick Harvey

Thanks for the tip! I will try to make it out there.

BP meetups I have been to in the past have been fun, but since I have a very specific situation of looking to invest in Durham from NYC, I haven't found a lot of connections that make sense in the past (most folks looking to invest in the NY area, which is completely understandable).