All Forum Posts by: Melissa N.

Thanks @James Blais. Vacancy seems low but the tenants have been there forever. Thanks for your input, it is helpful. 

@James Blais I'm looking at a place in Thomaston. I'd love your insider opinion on the area. I live in NY but I'm not too familiar with this little town. 

Thanks!
Melissa

congrats, that's awesome!!

The Charlotte market isn't allowing for much cash flow these days. With that said, I'd also say only invest for cash flow - you can't use your Cap Rate to go to Hawaii or put food on the table. 

Some experts are saying there is another recession on the way. I tend to agree. The playing field is about to clear when that happens and perhaps people will stop overpaying. Maybe not in Charlotte because people are paying for appreciation. Only time will tell but I'm not in the business of buying and praying for appreciation. Just my two cents :) 

I think the economy, overall, will see some turmoil and that will impact real estate. People are 'overpaying' in Charlotte. Yes, the prices are relatively low in comparison to other major cities and in the long run Charlotte is a smart place to buy. But, there is a good amount of speculation going on. Know your numbers, don't overpay, and plan to be in it for the long haul and you'll be fine in my opinion.  That is how you'll protect yourself regardless of the dips and peaks. 

I think good deals can exist but it depends on what you are looking to buy. 

@Eric DaveyWhat kind of returns can you expect in the Concord area? Know of any small apartment buildings? 

Yea, that was the plan but:

1. Purchase at 105k, cash (seller pays for roof about $5-6k)

2. Renovate $7k

3. Get tenants paying $750

4. Get a loan for about $90, so I have about $20 in it. 

So that's not really a BRRR. Maybe it's just a headache :)

@Justin R. Rents are currently $600 each. It's a duplex. They have not had much vacancy since the current tenants have been there for years. They are both 2 beds, 1 bath. 

Current market rent is about $750 when I fix it up. I projected 5% for vacancy, 6% repairs, 6% cap ex (I'm planning to do roof, HVAC, furnace repair, flooring, and painting) and 9% for property management. 

My plan was to BRRR so I'd pay cash get it all fixed up then get loan on the new amount. Trouble with the initial plan is that he wants me to pay for what it will be worth (at least in my eyes) but it does still cash flow well.

Yea, he seems to want over market for it but it does cash flow well. That's why I'm torn. Since historically thia section has not appreciated much if I pay too much I won't be able  to sell it for probably 10 years. Not the end of the world if I can get good tenants but I saw this more of a 5 year plan.

ok here's the jist of it:

Asking $112k for a duplex in c class neighborhood.

Offered 90k because it needs about 15k of work and recent comps in the area l sold for around 90k.

Seller countered at 105 but will do the roof. 

At 100k it can cash flow $458. Cash on cash was 18%.

Appreciation hasn't been great in the past but it's in a growing area and the "path of progress" since its a hike ride to the new light rail.

Another kicker is that one of the current tenants is a sex offender. 

Would you buy it?