All Forum Posts by: Laura Shinkle

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. 

@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!