All Forum Posts by: Laura Shinkle

Hi @Strom Lee. I'm an agent in the Charlotte area. For your particular strategy with small multifamily properties, I honestly wouldn't waste your time looking in Charlotte. That type of building is not common in Charlotte. The ones that do pop up are either in terrible condition or the rental rates won't support the purchase price to even a 1% rule. 

That being said, that is my experience for properties listed on the MLS. If you can find wholesaler connections for off-market properties, that may be a different story. Just my two cents!

Hi @Barbara Harrison, welcome to NC! I'm in the Charlotte area and I like your forward thinking towards the NW side of Charlotte. Lots of investors are focusing on the Belmont/Gastonia areas to the west of Charlotte. It's not a bad area for sure, and is appreciating rapidly. However I like the 28216 zip code area. The access to 485 within the last 2 years has made it much more accessible and reasonable of a commute than previously. In the last year, I've seen that zip code appreciate over 16%. Not too shabby.

If you're looking for rental properties with good cash flow, the triad area may be better, though. The 1% rule is getting tougher and tougher here, since the market is expanding and appreciating so quickly. Prices are now generally exceeding that. Just my two cents!

Hi guys, Realtor from Charlotte, NC here. These iBuyers are all in our market (OpenDoor, Offerpad, Knock and Zillow) which has made a lot of people nervous. However, we still aren't seeing them take a huge portion of the market share. A lot of their 'flips' (cosmetic at best) are such low margins I don't see how they are profiting. At the end of the day, most people want to know that there is a human involved and that's where you as a private investor come in. Show that you care, that you want to partner with them to help them achieve their goals and that they won't be just a number on a spreadsheet to you. Also, educating sellers that these iBuyers all charge a fee, which is usually at least if not more than what a traditional broker would charge to list their home. As a private investor, I would think you wouldn't be charging that, so more money in their pocket. Just my two cents!

Hi @Kayla Godwin, welcome to BP! Networking meetups are a great place to start! Keep reading and get involved in the forums. This business takes time, patience, and tenacity. Stick with it!

I agree with pretty much what everyone else has said, $9k for an HVAC is a super high end system. No need for that. I wouldn't keep replacing parts UNLESS the home warranty was paying for that. It sounds like they aren't, so bite the bullet and get a new system. I would do it ASAP as the weather here in Charlotte is brutal right now. 

Once you get a new system put in, see if the company that installs will give you an inspection letter that the system is functioning well. That's the loophole that most home warranty companies use. As long as your inspection shows it was functioning with no issues at a certain date and it breaks after that, then they should pay out. There are definitely better warranty companies out there. Just like any insurance/warranty, they're going to try to get out of it, unfortunately. 

Once you get a new system, make sure you have regularly scheduled maintenance. That can extend the life of that investment 10+ years, especially since tenants can't be trusted to change the filters every few months. Just my two cents!

Hi @Fernando Domingo, just some thoughts....

If it's one zone cooling the whole house, it's not surprising that there are issues. That's the case in any house I've ever been in that has one HVAC unit and one zone for two floors. Changing to a dual zone is expensive since you have to re-duct the upstairs, so probably not something you'd want to do. 

I agree with the previous statements, check the insulation in the attic and make sure that is up to par. If it is, then just buy a window unit for the upstairs and state it stays with the house. Likely the next tenant will want it as well.

Overall though if it's 95 degrees outside, any unit would struggle to cool a home. It comes down to whether you want to fight over a $200 window unit to keep tenants happy. Vacancy is what really eats into your profit, so keep that in mind. Best of luck!

Hi @Sean Boyle, I think you've got some good answers here on every end of the spectrum! It is, of course, your property and you should choose what's right and makes sense to you. However, I would like to second what Daniel said. In recommending those routine maintenances, they are looking out for you and your asset. HVAC systems should be serviced twice a year to ensure longevity. I've seen some last 25+years, and I've seen some last 10. That's a big difference. You also don't live in the property, so there may have been issues the tenants didn't notice or report that could be easily fixed prior to a new tenant moving in.

I deal more with the sales side, but rentals are the same in that marketing is huge and first impressions can only be made once. Renters are sometimes pickier than buyers, so make sure everything is ready to go, priced right and then go to market. If you have a good, well maintained property that's priced right, it shouldn't be vacant for long. 

Talk to your property manager and try to think of them as a teammate rather than an adversary. After all, they do work for you so they have your best interests at heart. 

@Emmett Burton I would definitely double check your HOA docs. Quite a few condo neighborhoods restrict rentals and they'll specify the minimum lease length, rental caps and if you can rent part of the home or if it needs to be rented in its entirety. I love your plan, though! Good luck!

Unless you’ve got experience in buying distressed houses, I wouldn’t recommend it. Just because something is cheap doesn’t make it a good investment for you.  Feel free to send me an email if you still want steps. 

@Henry D West it’s a great question. I do love the multifamily route, but Charlotte has a very limited amount of multifamily properties that would make financial sense for investing and cash flow. 

I have helped a client that is house hacking but with Airbnb, not a long term tenant. He is booked most of the month and it’s worked out that he hasn’t paid a single mortgage payment yet. If you’re open to that, it could be a great option. It will help you build something for yourself while not wasting money on rent. I’m sure you’re well aware of the crazy rental rates in Charlotte. 

The way I see it, if you stay renting and just buy a rental property, yes you’ll have the cash flow from the rental (ideally) but you’ll be throwing away thousands per year on rent. You’ll be able to save money faster for another down payment with house hacking. Happy to connect if you want to discuss more.