All Forum Posts by: Laura Shinkle

@Matthew Samson that's a tough break, sorry to hear about that. I've worked with a client in a very similar situation, and have spoken to many inspectors/engineers/builders, etc about things like this. *keep in mind I'm none of those things, always rely on the experts*

1. I'd get an actual structural engineer out to the property. They don't have a monetary incentive to sell you on anything. They'll charge $500-$1k (at least in my area) to come out, evaluate the home, and give you a plan. You can then take that plan to foundation companies and get bids for that work. 

2. For the issue itself, the crack isn't necessarily my biggest concern, but the displacement of the foundation is what worries me. Even if it's 10 years old or more, the potential for shifting is still there and you may have been structurally compromised for years and just not known. 3/4 inch displacement is fairly significant (IMO) for a slab foundation. 

3. Side note, and not what you're asking...I'd make sure you get a termite bond on the house. It's basically yearly treatment to protect the home from termites. If you've got evidence of them in the past, they could come back (and yes, I've had termites in two of my slab foundation homes, so it's definitely possible and happens, at least in my area which is NC). 

4. $25k for helical piers sounds a little steep, but it's been a few years since I saw a quote for that, and of course it depends on how many you need. Again, get a structural engineer out there to evaluate and go from there. 

Good luck!!

@Ben Berg with renting rates, roommates or a straight rental, you always look at comps, or comparable homes. So I would go on different sites like Roomster, FB marketplace, and similar sites like that to see what people are renting rooms out for. You'll probably need to look at a few to get a general idea of what a room would rent for in your area. Pay attention to whether the room is a primary suite (your own bathroom) or shared bathroom, how many roommates, etc. as those would factor in to how much someone would be willing to pay. Once you find that number, then that's what you should charge any roommate, whether it ends up being your friend or not. And it doesn't always match up to half the mortgage since the mortgage has nothing to do with rental rates. Even though it's important for investor numbers, of course. 

For utilities, it's up to you. You could roll an estimate for utilities in with the rent to make it easy, or charge each month which takes a little more time/effort. The catch with the estimate is you may be wildly off since it's a new home and you don't really know what those bills will be until you've lived there a year (seasonal variability). 

My last piece of advice....take it or leave it....being a landlord with your friend is a very different experience than just living with them in a rental. You're now the owner of the property, so the responsibility of fixing things is on you. It can get really sticky, cause frustration and ruin a friendship if expectations aren't set up front. My best advice, if your friend does move in, is to set up front what expectations you have (you mow the lawn every other week or first week of the months, whatever). And still have them sign a lease like you would everyone else, so it's all clear up front. Just my two cents, good luck!

Hi Trevor! Sorry to hear your self managing isn't going as planned...finding good tenants is tricky! I am very glad to hear you want to hire someone to help with the eviction process. In NC, if you don't do things by the book, it can be so much worse in the end. I've heard great things about Loebsack & Brownlee, that's basically all they do so they know the ins and outs of the law, and they're good at it. Pretty reasonable cost too. 

Hope that helps, and good luck!

Hi Orchid!

It sounds like a couple of folks have answered most of your questions. 

Just to confirm, for an owner-occupied home (one you live in) you have to live in the property for 2 out of the last 5 years in order to claim the $500k exception for married couples. That said, check with a CPA if you can use expenses from the remodel to offset some of the gains. And at the end of the day, paying taxes means you made money, so that's awesome! 

You can only use a 1031 exchange for investment properties, not a home you live in. Have you considered buying the Mooresville property and then keeping it as a rental? Wealth is made in the buy and hold strategy of real estate. Over time, the home will appreciate, rents will likely go up, etc. If you're worried about cash flow, put enough money down so that a current estimated rental price after the home is renovated will cover the mortgage and property manager costs. Interest rates are what they are, so find some different strategies to make it work. Time in the market is better than timing the market. 

As far as Mooresville as an area goes, it's a great spot. It is growing in popularity because of proximity to Charlotte (about 45 min drive) and Lake Norman but still has a small town feel. The median price in Mooresville is currently $478,000. In Iredell County (the county Mooresville is in) has a median price of $376,000 so going slightly outside Mooresville might be more appealing. Home prices are steadily climbing around 4% or so YoY. 

If there are other areas in the Charlotte Metro area you're interested in, I'd be happy to chat with you about them since that's my area of expertise! Best of luck with the move and your real estate journey!

@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!