All Forum Posts by: Laura Shinkle

@Alex Thomsen I'm a Realtor in CLT and for that purchase price, that amount of EMD is excessive. I'm surprised that your agent is ok with it. Most builders in the area are 3-5% of the purchase price, so at a purchase price of $340,000 you'd be looking at a range of $10k-$18k-ish. Typically, this is also refundable should you not get qualified for a loan. (although I'm assuming you're preapproved and therefore that's not an issue).

My best advice would be to read through the contract carefully (builders usually have their own individual contract that's written for them and is leaning heavily in their favor). Make sure you understand what happens to your money and when. Maybe try to ask around about their reputation if they're not a large, national builder and then go with your gut. Make them an offer, let them know its your best one, and if they won't accept, then walk away. That's the beauty of investors, keep emotion out of it. There's always another house. 

Hope this helps, and best of luck!

Hey Ben, good question.  A lease for a year while you get settled in a new area and settling down with work is not a bad thing. Its a means to an end, letting you get settled and figure out the area before you purchase. 

In the grand scheme of things, a year is not that long. It'll give you time to save up...the more money you have, the more options you give yourself. I usually tell my clients to start getting preapproved about 4-6 months before you want to move in. That way, you can clear up anything that might be on your credit that you don't know about, maybe increase your credit a bit, and have plenty of time to look before committing to a house. 

I don't think it would be wise to knowingly buy something that you'd be forced to pay both rent and mortgage. Getting a tenant isn't an overnight thing, you may have repairs to make before getting one, so it could be a few months of paying double before you see any income generated from your househack. 

My thoughts: be patient, save up money, put yourself in a great financial position, and then buy. Real estate is not a get rich quick scheme, and one year isn't long in the grand scheme of things. Hope this helps!

Hey @Josselyn Navas, welcome to Charlotte! We obviously all believe in homeownership and real estate as a wealth building strategy, so I'm excited for you and maybe your family to start that journey! 

 Hi Mike, congrats on doing well with your Columbia, SC sale. There's a ton of meetups if you search for them here on the site. Check those out and jump in the forums. You'll meet a ton of ppl that way. What is your goal/strategy that you're moving forward with?

@Andy Bahr what PM do you use for MTR in the Charlotte area? I haven't found one that I'm impressed with? They're either STR focused or only do LTR. Thanks!

Hi @Mario McGee, I love the strategy and the thought process. The first step I'd recommend would be to talk to a lender and make sure that your pre-approval is complete and solid. These programs, though you may qualify for them, may have some hurdles/hoops to jump through or fees that may not work in your best interest. It's always best to talk to a lender to make sure that you do, in fact, qualify for them, and that it's your best lending option. For example, I have clients that qualify for a grant program through a large national bank, but the program also requires a higher interest rate, so they decided to go a different route. It's ALWAYS best to get preapproved wtih a lender who does these transactions regularly and can help you navigate them. 

You mentioned buying two duplexes, partnering with a friend, and a 203k laon and first time homebuyer programs. The 203k loan is an FHA loan product, which requires you to be an owner occupant. Same with first time homebuyer programs. You'll need to live in one of them in order to utilize those loans. If you buy as an investment, there won't be any assistance programs to help with that since those programs are designed to help people buy primary residences. My best advice: buy one utilizing either a renovation loan (there's a conventional loan equivalent to the 203k loan program) and the first time homebuyer grant programs. Stay in the property for a year, and then do the same thing again. If you buy one strictly as an investment with a friend, be prepared to bring 20% or more down.

Lastly, there aren't a huge amount of duplexes available in the Charlotte area. Keep your mind and options open, and focused on the main goal of buying an investment. For example, maybe a single family with a large, detached garage could be converted to a second living space. Or maybe the duplex needs a lot of work, and is smaller than you initially thought you'd need (most duplexes I've seen are 1-2 bedrooms, no more, and less than 1000sf on each side). It's only for a season, sacrificing space/comfort now might be worth it in the long run for you. 

I hope this helps! Best of luck in your search!

Hi Yana, that's great that you've got that cash ready to go to work for you! There are a lot of investors in the Charlotte area, and most properties are listed (not all). What kind of property are you looking for? What kind of ROI/cash on cash, etc. I'd also recommend working with a Realtor who can guide you in that process and help source the properties for you. Good luck!

@Logan Carter the law states a minimum amount in the general statute, but a lease can always be stricter. Hence the 60 day notice with a year lease, which is longer than the 30 day required by law. If she goes month to month, the lease will dictate the terms. I'm sure they're different once she goes month to month. It's probably 30 days. Apartments don't like not knowing when a tenant is leaving, and they definitely make tenants pay for that flexibility. If she is transitioning to a house, she'll need to either do the month to month route or take the leap of faith that she'll find something when she needs to since houses don't typically come up for rent until they're vacant and ready to be leased. 

@Sara Acord I think you're on the right track! It sounds like you have some time to dig in and see what makes the most sense for you to invest in. That said, you do have a leg up as someone mentioned, with the lower interest rate compared to current rates. I also think you've got quite a bit of flexibility with the specific property you own. Turning the studio into a functional Airbnb (if its allowed by your HOA or local government rules) or long term rental to increase your income. If you do that sooner rather than later, you may even be able to use that to partially or fully fund your next down payment as well.

I'd recommend first reaching out to a Realtor in the area that can advise on the value of different projects, and they can also help you connect with a lender who can give you HELOC and other potential options! Knowing your options will help you to best figure out what makes the most sense to you and your family moving forward.

So we're coming up on the fundamentals of real estate. To get more cash flow, it's more work. For something that is truly passive, the cash flow is less. That's just the way real estate works. 

Second, no one will do work for free. You're frustrated by the amount of time it's taking from you. Well, the work itself doesn't get easier or less time consuming if someone else is doing it. If you don't want to hire a PM to do this work for you, then you could try a couple different things when you move out: 

1. Change strategies and turn it into a LTR. The LTR will be the easy button (compared to other strategies in real estate) but will be less cash flow. Perhaps it's worth it for the increased appreciation you anticipate. If you sell after a couple years, you've gained appreciation and still get to keep the profits tax free if you've lived there 2 out of the last 5 years. 

2. Change strategies and turn it into a MTR/STR. This should, ideally, get more cash flow, and allow you to hire a PM without breaking the bank. That takes the every day burden off you, and gets you cash flow. Make sure that's allowable with the governing agencies/laws.

3. If none of the above work, would it be so bad to sell the house? Take the appreciation and turn that into another property that is better for one of the above strategies, allowing you more of a passive income than you have now. It has served you well, taught you a lot, and now maybe it's time for you to turn that into a better investment for where you are in your life.