All Forum Posts by: Kai Kopsch

Charlotte region, the real estate market experienced a slight dip in new listings by 2.4 percent, bringing the total to 4,805. Meanwhile, pending sales decreased by a modest 0.3 percent, settling at 4,196. However, the inventory of homes for sale saw a significant growth of 9.6 percent, amounting to 5,865.
Amidst these shifts, the median sales price in the area climbed by 4.5 percent to a robust $385,000. This price hike suggests a competitive market, with supply increasing relative to demand by a notable 21.4 percent, resulting in a 1.7 months' supply of homes for sale.
This recent development in the Charlotte real estate scene is likely influenced by a combination of factors, including a dip in mortgage rates in December and a nationwide increase in housing supply. The National Association of Realtors (NAR) reported a 5.9% month-over-month and 10.3% year-over-year growth in total inventory, reaching 1.07 million units. This increase in supply, coupled with robust buyer demand, contributed to pushing the median existing-home sales price up 5.7% year-over-year to $384,500. This marks the eighth consecutive month of annual price increases, highlighting the ongoing strength and resilience of the Charlotte and national housing markets.

BRRRR opportunities can be a great way to build your portfolio and generate passive income. Here are some steps to help you get started:

1. Educate yourself: Learn as much as you can about real estate investing, including market analysis, property valuation, financing, and property management. There are numerous books, podcasts, and online resources available to help you become a more knowledgeable investor.
2. Build a team: Assemble a team of professionals to help you with your real estate investments, including a real estate agent, lender, contractor, and property manager. These professionals can provide valuable insights and help you navigate the complexities of real estate investing.
3. Research the market: Start by researching different markets across the country to identify areas with strong rental demand, affordable property prices, and potential for appreciation. Look for markets with diverse job opportunities, population growth, and a strong local economy.
4. Financing: Explore your financing options, such as traditional mortgages, home equity loans, or investment property loans. Consult with a mortgage broker or lender to determine the best financing solution for your investment goals and financial situation.
5. Property selection: Look for properties that have the potential for value-add improvements, such as cosmetic upgrades, energy-efficient upgrades, or additional amenities. These improvements can help you increase rental income and property value.
6. Network: Connect with other real estate investors in San Francisco and across the country to learn from their experiences and stay informed about market trends. You can join local real estate investment clubs or online forums to expand your network.
7. Start small: Since you're new to real estate investing, it's a good idea to start with smaller properties under $400K. This will allow you to learn the ropes and minimize your risk as you gain experience.
8. Monitor your investments: Continuously track your investments' performance, including rental income, expenses, and property value. This will help you make informed decisions about future investments and optimize your portfolio.
9. Scale your investments: As you gain experience and confidence in real estate investing, consider scaling your investments by purchasing larger properties or expanding into different markets.

By following these steps and staying disciplined in your approach, you can successfully invest in real estate and build a profitable portfolio as a software engineer.

Both strategies you've mentioned could work, depending on your financial goals, risk tolerance, and the current market conditions in Chandler, Arizona. Here are some considerations for each option:
Option 1: Using the HELOC for a down payment and renovation on a second property to rent:

• Pros:
  • You can leverage your existing property to acquire another investment property without selling your current home.
  • Rental properties can provide a steady income stream and potential long-term appreciation.
  • You can use the HELOC funds for renovation, which can increase the property value and rental income.
• Cons:
  • You'll have to manage the property yourself or hire a property manager, which can be time-consuming and add to your expenses.
  • There is a risk of vacancies or unexpected maintenance costs, which could impact your cash flow.
  • You'll have to pay back the HELOC, which will increase your monthly expenses.

Option 2: Building a new house in a new community and selling it for a profit:

• Pros:
  • You can potentially make a significant profit if the market is favorable and the property value increases during the construction period.
  • Building a new house allows you to customize the property and potentially attract more buyers or higher rents.
• Cons:
  • This strategy involves a higher level of risk, as you're betting on the market to appreciate in a relatively short period.
  • There are many unknowns and potential delays in the construction process, which could impact your timeline and profitability.
  • You'll need to have a good understanding of the local real estate market and construction costs to ensure that your project is profitable.

Before choosing either of these strategies, consider the following:

1. Research the local market conditions in Chandler, Arizona, to understand the current demand for rental properties and new construction homes.
2. Consult with a real estate agent or investment advisor who has experience in the local market to get their insights on the best strategy for your situation.
3. Evaluate your financial situation, including your income, expenses, and risk tolerance, to determine if either strategy aligns with your goals and financial capacity.
4. Consider the tax implications of each option, as this can impact your overall profitability.
5. Create a detailed financial plan for each option, including projected income, expenses, and potential risks, to help you make an informed decision.

Ultimately, the best strategy for you will depend on your unique situation and goals. It may be helpful to consult with a lender or real estate professional to discuss your options and develop a plan that aligns with your objectives.

@Michael D Bryan welcome to BP! Tucson, Arizona, presents a promising market for real estate investment, especially with the recent adoption of the by-right ADU (Accessory Dwelling Unit) ordinance. This regulation allows property owners to build ADUs on their existing residential lots without the need for additional zoning approvals, which can significantly increase property value and rental income.

It's great to see you're determined to get back into real estate investing despite the challenges you've faced. House hacking is indeed a smart strategy to lower your living expenses and start building your real estate portfolio. Here's a detailed approach to help you make the most of your VA loan and available resources:

1. -Choose the right property type: Since you value your privacy, a multi-family property might be a better fit for you than renting out rooms in a single-family home. Look for a duplex, triplex, or fourplex where you can live in one unit and rent out the others. This way, you can maintain your privacy while still benefiting from rental income.
2. -Location: Focus on properties in desirable neighborhoods with strong rental demand. Look for areas with low vacancy rates, good schools, and proximity to amenities like shopping centers, parks, and public transportation.
3. -Financing: Leverage your VA loan to minimize your upfront costs. VA loans typically require no down payment and have competitive interest rates. However, keep in mind that there may be additional fees associated with multi-family properties, so make sure to factor these into your budget.
4. -Cash reserves: Set aside a portion of your $50k cash as a reserve fund for unexpected expenses, such as repairs, vacancies, or market fluctuations. Aim to have at least 3-6 months' worth of mortgage payments and operating expenses in reserve.
5. -Add value: Look for properties that have the potential for value-add improvements, such as cosmetic upgrades, energy-efficient upgrades, or additional amenities. These improvements can help you increase rental income and property value over time.
6. -Network: Connect with other real estate investors in your area to learn from their experiences and stay informed about market trends. You can join local real estate investment clubs or online forums to expand your network.
7. Education: Continuously educate yourself on real estate investing strategies, market trends, and property management best practices. There are numerous books, podcasts, and online resources available to help you become a more knowledgeable investor.

By following these steps and staying disciplined in your approach, you can successfully house hack using your VA loan and build a solid foundation for your real estate investment portfolio.

@Patience Echem You're already in a prime market for investing, and with $300K in cash, the possibilities are vast. To excel in real estate investment, it's essential to assemble a reliable team. With the right lender, your 300K can achieve much more than merely purchasing single-family residences with cash.

Quote from @Daniel Baltazar:

with both properties they sat on the market for around 4 months with big price reductions for both. the average days on market 

That sounds like a lot of pain! I would never do a flip in a Market where it takes over 120 Days to to go under contract or close. If you took a $100,000 loan at a 8% interest rate, you would owe a total of $8,000 in interest. Divide that $8,000 by the 12 months of the loan, and your minimum monthly interest payment would be $666.66 per month.

Simple decision: Do you lose more money on this transaction buying the property than what it cost you to terminate this deal? Earnest money, inspections and potential losses of the seller?

You might want to reconsider your strategy. Most of the money in this area is made by teaching people about wholesaling, often with questionable advice. So, instead of chasing after wholesalers, why not start farming real estate leads in the area? By the time you get to know the market, you'll have a better understanding of the players, including the wholesalers and investors. It's like going to the source instead of chasing after the middlemen. Who knows, you might even discover a hidden treasure trove of opportunities in the process!

Oh, you want a Zestimate of how close it is to the actual value? Well, let me put it this way: If Zestimate were a weatherman, it would be the one who predicts sunny skies while you're standing in a hurricane. But hey, at least it's consistent in its inconsistency, right?