All Forum Posts by: Anthony McDougle

Hey! Welcome!

I'm not a fix & flip guy, but I am hoping to become a buy & hold guy in Charlotte. Unfortunately, I'm very new to this, so I don't have much advice, but good luck!

@Rick Baggenstoss wow that's amazing, thank you for sharing that!

That does seem to go along with what I've seen.

The consensus typically seems to be to leverage your investments, as that will increase cashflow drastically.

But you should definitely do the math yourself to make sure it works out that way.

@Rick Baggenstoss just out of curiosity, what parts of Charlotte would you define "fast growing areas"?

Also, I've talked to people who live in the area near Hwy 16 on Hoskins Ave. who talk about shootings and whatnot in the area. I also looked up crime reports on some specific places in Charlotte, and it showed some pretty scary stuff. Driving around near my office near the airport is pretty sketchy too. None of it's a race issue.

I wouldn't say those places are "warzones" necessarily if you're comparing them to some really bad crime-ridden places elsewhere in the country (or seen in movies), but I don't think I'd want to invest around there...

I'm pretty new to this too, so my advice may not be worth much, but....

Ken McElroy's book seems to lay out pretty well what calculations need to be done to prove an investment property's worth. It sounds like you know the owner of the property personally -- ask him if you can get any documentation he has on the properties -- taxes paid for the last X years, rents paid during that time, vacancy %, all maintenance and other expenses.... I imagine, the further back you go and the more data you can provide, the better it will look to the lenders. Then, do the math and use that data to show that rent has covered and should continue to cover all expenses and net a profit. If it doesn't do that... well, it's probably not a deal.

As for anything involving repairs -- I have no idea, honestly, I'll let someone else chime in on that.

Hmm... his criminal history is borderline passable and "money isn't a concern?" I know I don't know much about the situation.... but it sounds really sketchy...

I think what they're saying is that, in the contract you have with them, state that you will not pay utilities and they will figure it out themselves. If one tenant moves out, the others need to figure out utilities and how to pay them for themselves. If they don't handle it, they go without power & water. This is what one complex I lived at during college did. Take yourself out of the utilities equation entirely!

Ha! I'm sure everyone does that at least a little bit!

But @Marco Santarelli is right. No one can really answer that question except for you. If the deal is there with the rental, and the business is also a great opportunity, it really depends on which one you want more!

If all other things are equal, you have to ask yourself -- which one are you more passionate about?

I don't know what to say about pet policies. I still haven't figured out what I plan to do for pet policies towards renters.

I have a German Shepherd, though, and she is the most wonderful dog -- everyone who meets her praises her for being so well-behaved. As far as damage to property goes, they're one of the best breeds for that -- they don't chew, they don't dig, etc. There's a stigma, I guess, because they're police dogs and were bred to have the capacity to be aggressive, but unless you raise them to be aggressive or you suck as a pet owner they're the most loving breed I've ever had.

Now, there's the problem -- most people suck as pet owners, and I realize this as a future landlord. I'm tempted to say no to pets in general for that reason, although if I allowed pets I wouldn't single out a breed like that unless my insurance had breed clauses. If anything, the more lovable breeds like Labs are the worst, because they have a tendency to get bored and destroy property!

No cats, though.

Welcome! I'm new to REI in Charlotte as well -- hoping to become a buy-and-hold guy and build up some passive cashflow.

I'm still learning, too, so I might not have much advice yet, but if you find some good deals in the area and need a buyer, don't hesitate to contact!