All Forum Posts by: Evan W.

@Benjamin Seibert Thanks for the input Ben! I will take your advice and get a quote on electrical. This is more of a buy and hold situation for me. There is not much wiggle room with the ARV unfortunately. This house is on the higher end of home values in the neighborhood and the inside has already been rehabbed. With 15k added mostly to the outside, ARV is probably 285-290. The reason I'm buying it is because it has an in-law suite attached to the garage and cashflows (20% cash on cash) far better than anything I have found on market in Raleigh - which is a hyper seller's market right now. Very low supply. Values have almost doubled in the past 5-6 years. 1% rule has become the 0.8% rule.

Hey guys, I recently got my inspection report back for my first home and house hack in Raleigh, NC. Was hoping to get some of your thoughts and guidance as this is my first time going through the buying process.

It’s a brick ranch built in 1953 with a 500sqft addition. Asking 250k. Offer accepted at 255.5k. It’s kind of a half-*** flip. Updated kitchen and refinished bathrooms. Refinished hardwoods. Old windows. Cracked driveway. HVAC is 7 years old.

Main takeaways are:

- Moisture and mold in the crawl space. (No vapor barrier, damaged insulation. Some soft spots in the floor).

- Sitting water on the roof due to incorrect grading of roof membrane. Other than that, the roof is good condition.

- HVAC cooling system is causing the drain pan to fill with water because pressure is lower than it should be. Also, ductwork is ~25 years old.

- Outdated aluminum wiring and 15+ ungrounded outlets.

I’m thinking that I will have them pay for mold remediation and vapor barrier installation (assuming that is the root cause of the moisture). I’ll have them replace the roof membrane. And I’ll take cash towards close for the quoted repairs for HVAC. Not sure what to do about the electrical. May just leave it out if they agree to everything else?

What would you do?

Christopher K. I think you make some really good points here. Thanks for all of the awesome insight. It's always super helpful to get inside the mind of a more experienced investor.

I would argue for a newer investor like myself -- doing a decent deal now outweighs the opportunity cost of waiting until I have some sort of competitive advantage. Yes, it may be a mediocre deal. Maybe I even lose some money on it... But I just accelerated my learning process tenfold, and probably met some great people along the way as well.  How many people can say their first deal was a homerun?

Maybe this only applies to someone who is buying their primary residence for a house hack or their first true rental, but I wanted to make that point to hopefully encourage other newbies who are lurking these Raleigh BP waters. In my personal experience, no rockstars really want to work with someone who doesn't even have their foot in the door yet. Doing at least one deal (mediocre or not) will open up many more opportunities.

That being said, don't throw your money away haha. I just don't think lowering with your 1% rule criteria to 0.8% is such a bad thing. Maybe my perspective will change once I have more experience... ¯\_(ツ)_/¯

@Angelo Pompeo That's the beauty of real estate! There are so many niches and creative ways to make money, build wealth, and provide value. At least you are a homeowner already haha - you're doing better than I am!

Quick tip if you didn't know.. you can actually sell your primary residence with no cap gains tax if you've lived in it for 2 out of the past 5 years. If it doesn't work as a rental, that could be an interesting option.

@Angelo Pompeo

Angelo! I am new to the BP family as well. I run an STR business in Columbus, and looking to secure my first house hack in Raleigh before the New Year. House hacking has been touted by BP as the most lucrative way to get started in the game - so if you don't own your primary residence, I would certainly recommend it! Would love to connect, and learn more about your goals with REI!

Cheers, Evan

@Shanell Schenker Thanks for the input! That seems to be the case with most “not highly sought after” areas in Raleigh. It will probably take longer than other areas to see serious appreciation like East Raleigh. How would you say it compares to East Raleigh in terms of desirability?

Hi Everybody,

Looking for a SFH House Hack in the Raleigh area, but I am still out-of-state. Not super familiar with South Raleigh (south of 40). Can anyone share some insight on the area? Specifically Twin Lakes, Robinwood, Parkland, Heritage, etc.

Thanks!

Hi Everybody,

Looking for a SFH House Hack in the Raleigh area, but I am still out-of-state. Not super familiar with South Raleigh (south of 40). Can anyone share some insight on the area? Specifically Twin Lakes, Robinwood, Parkland, Heritage, etc.

Thanks!

@Keith Dowdy 

That is so awesome! Congratulations. I love seeing other people succeed in the STR space.

I'm planning on making my first land purchase in Western NC for an outdoor retreat - as the market slows down this winter. Banner Elk area seems to be too pricey for me... I've been considering the Linville/Jonas Ridge area as I LOVE the Gorge, and figured it is still close enough to Sugar Mountain, Grandfather, etc. to get some attention. Curious on your thoughts.

I'd love to share some of our experiences in STR, and learn how you got started in this area!

That goes for anyone else following this thread as well! Thank you for the awesome content.

@Derek Robinson I fell in love with Western NC during my time at NC State. Just an absolutely beautiful part of the country... Currently planning my first land purchase specifically in the Linville Gorge area (Lake James, Jonas Ridge, etc.) to create an outdoor retreat for people to connect with nature and find a fresh perspective. Would love to connect with you and anyone else investing in the area, and share some of our ideas and experiences in STRs.

Let's keep this thread alive!