All Forum Posts by: Laura Shinkle

@Ryan Thomson is an agent out in that area, maybe he could provide some insight into that market! I know he works with a lot of clients who are househacking and having success. I do know that sometimes in this market with higher interest, flexibility can be key!

I think it's a great idea, if your numbers work. Everyone is always trying to find where their advantage is, and I think you have yours with your experience, day job and family connections. Being able to build without the retail cost sounds like its a great option. 

As the others have mentioned, make sure you add up all the costs, realistically, including developing the land, see what your ARV would be after it's finished, and what your rent would be. Also keeping in mind that even if the rent doesn't cover all your mortgage, that doesn't mean it isn't a great investment. It's still reducing your major expenses, while allowing you to own an appreciating asset.

Good luck!

Hi Sara,

Sounds like you've got some decisions ahead of you! I'll start out with asking what your long term goals are. And would this property fit into the criteria of those long term goals? 

For the ADU, I'd check with your Realtor and see what the value you would be with doing the work you mentioned (and see what he/she thinks about any other work that needs to be done in the house prior to selling to maximize your sales price). If the numbers make sense, go for it. If they don't, or the margin is low, maybe it's not worth it.

Last thing to think about....you can pull equity out of the house to use as a downpayment without selling. And no, refinancing isn't your only option there. If your long term goal is to own rental properties, it might be worth keeping and pulling equity out for a down payment on the next house. Wealth is built in the long term buy and hold. 

Hope that helps!

@Sanjita Pradhan I think Angie laid it out well. There's lots of potential in Charlotte, it just depends on what type of STR you want, and your price point. I would start with your ideal price point. That may dictate where would be the best location. Then an agent experienced in STRs would be able to point you in a few directions!

The only thing I would say is maybe take a look around at the Charlotte market and see if that's where you'd like to be as an investor. Right now, with the interest rates the way they are and the market still strong, it's impossible to cash flow a long term rental unless you're putting 35%-45% down. I don't think there's a wrong answer, I would just want to make sure you do research before you do it to make sure you're not assuming certain things and then are disappointed when you look to buy an investment property here in CLT. 

I don't think investing out of state is a bad idea. I have no idea what tenant laws are in CA, so I can't speak to that. But is the equity in the home best utilized there or elsewhere? That would be the question I would ask myself. 

@Sharlene Ko make sure you read the state laws very carefully. It looks like some states (based on the comments) aren't strict about it. In NC, though, you need to keep a specific escrow account for security deposits only. The reason being, it's not really your money, you're holding it for someone else. If you put other money into that account that isn't a deposit of some kind, then you're commingling funds. 

I think you mentioned in FL you have to give the person any interest owed. If that's the case, it would be much simpler to put it in a separate HYSA so you don't have to separate out the interest from one tenant vs another. 

Good luck, I'm excited for your investing journey! 

Last thought and then I'm done! I know you don't intend to befriend the tenants. That said, you'll still want to be friendly and a good relationship with anyone you live with. Like @Osazee Edebiri said, it really isn't a big deal to manage a home you live in. You're not commuting across town to get there, dealing with tenant schedules, etc. With as many tools as there are now for background/credit/criminal checks and rent payment systems, it's really not bad. 

Also, I have several clients that have done this in CLT. Not necessarily targeting trendy areas, although I like that if it's feasible with your budget. Multifamilies are a struggle here, too. 

Good luck!

@Chase Kaye I'd check out different websites where roommates would look. Roommates.com, facebook pages, things like that. You could also do an Airbnb room rental, especially if you're in a great walkable area. 

When I lived in Asheville I never had a hard time finding roommates (back before it was called a househack). If you're priced right and it's a good property, they will come.

Just my two cents!

 Ah, sorry for the late reply then! 8 ppl in 2550sf is a lot! How much are you charging in rent, just curious