All Forum Posts by: Mike Williams

So I am in a situation I have never been in before. Buying in Charlotte, NC and the market is very hot right now. I have made multiple offers on listings and have been outbid on all of them, even when offering the asking price. I saw a house that is exactly what I am looking for and offered the list price and they accepted. 188k. Now the appraisal has come back at 175k. I have been advised not to go over the appraisal price though it seems to be the Charlotte market is moving so fast that a house purchased 6 months ago could sell for 10 to 20k more today. I figured I would be willing to go 3k out of pocket at 178k but the seller is sticking with 179k, we haven't even done an inspection and I am already out appraisal cost and 500 due diligence if I walk. Paying above the appraised value makes me a little uneasy as it is so half of me says just walk but the other half says if I skip and wait the market will just continue to go up and I might as well get it while houses are still reasonably priced. Please let me know your thoughts on this. 

This is a home I will live in and I'll rent my current house out. Link to house... http://www.estately.com/listings/info/4700-easthaven-drive

Michael, great call! I calculated my mortgage payment too high. Looking at it now cashflow would be 220 a month :) Cap rate staying the same but cash on cash return being 43%? Would that be right? Income being 2640 annually / (2700 down + 3500 closing costs)

I would be holding the property as a rental. Reason the cash flow is so low is I will only be putting 3.5% down and live in one unit and rent out the other so my mortgage will be about 560 a month. 10% cap rate seems good even though the cash flow will start low. 

Is this a good buy? Ok neighborhood, not bad but not good. 80k for house. Place is a duplex, 1 bed 1 bath on each side. 1500 sqft. Rent is currently 450 on each unit so 900 total. Thoughts?

I have been searching for a duplex for about six months now. I have seen many properties that have a cap rate of 10-15%, problem is they are in pretty sketchy neighborhoods. For a better neighborhood it seems as if the initial investment is usually double and the return never that much higher. For instance a 60,000 dollar duplex rents out for about 400 a unit in a sketchy neighborhood versus a 140,000 dollar duplex renting out for 600 a unit in a nicer neighborhood. The cap rate has almost been split in half. Would you rather go for the nicer neighborhood with less cash flow? To me when buying in a nicer area I just can't seem to make the numbers work. Thoughts on this?

I just moved to Charlotte and am looking for my first investment property. Any suggestions on a good agent?

Mike