All Forum Posts by: Account Closed

For me , I don't really do the rental game, but I buy and hold for appreciation. The SF I bought in Henderson (Southern Green valley area) has appreciated very well since I bought it. Also look into the google data center being built in Henderson, may help rents out in the area.

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Manufactured home isn't in the best shape , was built in 1993, but has some good bones (kitchen is functional etc). I was thinking of renovating it my self with flooring / paint and then flipping it or renting it out. Has anyone had experience with manufactured homes? Is it as easy as stick built homes to renovate ?

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Investment Info:

Single-family residence buy & hold investment in Cary.

Purchase price: $360,000

Bought my second house for buy and hold strategy. Had to put some work into this one but current market price is $420,000+

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Investment Info:

Single-family residence buy & hold investment in Henderson.

Purchase price: $260,000

Bought my first house in Henderson NV in 2014, held it since and it has appreciated very well. Current market price is $400,000+

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@Renuka Lokare I was looking at Austin as well. Keep an eye on prop taxes and how much they go up each year. Some of the places I saw, especially in East Austin had prop taxes that I can only describe as going up exponentially year to year

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@Kristyn Grimes

Hey there

I just moved to Cary NC and also lived in Apex, Raleigh , Durham , Chapel Hill for a while before that via Airbnb to check out the area.

This is my observation and my opinion, Raleigh and Durham are the cities , therefore one street can be really bad but the next street can be really good. Not really my thing to invest in coin flips which is why I did not buy in those areas, really have to know those areas to buy.

Apex is nice with newer houses but doing anything will take a 15 minute drive unless it is a house downtown or near beaver creek shopping center. The Airbnb j stayed in was a big mansion but again, it took 30 minute round trips just to buy groceries. Not sure how it will rent but for me I would not live there unless I was a old retired man with nothing to do

Chapel Hill has the best schools and also the highest taxes. It is also home to Unc so it has a college town vibe. I prefer Chapel Hill over Durham or Raleigh if I were to buy an investment property as renting to college students is what I would do.

Cary and Morrisville are pretty much the same place. From what I have seen so far living here over a year , it is the nicer 2 towns in the Triangle area IMO . Also West Cary (bordering Morrisville) is the better part of Cary from living here. This area is pretty much the “keeping with the Jonases” area. There are guys paying 40k to join the Prestonwood country club etc (link for an application if you want to join https://www.ginamiller.com/site_data/ginamiller1/editor_assets/doc04160020180424121136.pdf)

I am not in that class of people that can afford 40k to join the country club but from my research, West Cary was where I wanted to be and I did not regret my decision. It is the desirable area, only other place I can think of which has the allure is Irvine California. Zillow is also predicting 9.5% appreciation for the area next year as well so that helps as well.

Hope my opinion helps , even though I have only been here a little bit over a year

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Originally posted by @Antonio Cucciniello:

@Nathan W. You are in a better position than most people, with the equity in your properties and having a higher paying job in software engineering. Great stuff.

First off, there's a lot of ways you can go. If you want to build cash flow/passive income, then you need to get into buy and hold and have tenants. You can pay a property manager to do a lot of that.

Second, If you have no cash, you can use the equity in your primary residence to use as a downpayment on a rental property. that would be the easiest, non-complicated way to start, with less cash out of pocket.

Thanks Antonio, I like the passive income strategy, I don't have enough cash to buy another property. I will take out some equity from the primary residence to get started. I thought it through and this is probably the best way to get started with a small property and work my way up from there.

Originally posted by @Stephanie P.:

@Nathan W.

Consider short term rental for the Henderson house. Get a property management company. Have them manage the property and the turnover and pay them a nice percentage. You'll find significant tax benefits and income.

Hello Stephanie, I am looking into property management, the problem is the HOA in Henderson doesn't allow for short term rentals (Any lease has to be presented to the HOA and be over 2 months). I would of liked to airbnb the place out and leave the furniture but it doesn't look like that is going to happen

Originally posted by @Jack Yen:

@Account Closed congratulations on having these "problems"! It means you have built quite a bit of equity which contributes directly to your networth. I think you are on the right track that believes real estate can build wealth, now is the matter of how to use the equity efficiently to generate more cashflow and more wealth. I was in a similar situation, too. I think refinance out your primary home might be a good idea since the rate has been sooo low and it could free up some "cash" for you to do more investing. On the vacation rental I would probably refinance, too, and also explore the idea of Airbnb to maximize your income potential.

On your other question, I would ask yourself that would you prefer to be active or passive real estate investor? Both has it's perks and doesn't mean one is better than the other. Active RE investor will have to take on more responsibility and need to spend more time on RE, in general, compared to passive investors. I've been to both sides and it really depends on what you like and what your goal is. There are so many resources on BP and I think would help guide you through this journey. Again, great "problems" to have :)

Thanks Jack, that is the hard part, saving the money was easy to buy the places as I just kept working and saving, but actually renting them out and trying to grow my net worth with leverage is a lot harder as it has a lot more risk etc. The vacation house cannot be airbnb'ed as the HOA doesn't allow for any leases under 2 months (they want a copy of the lease). I am going to start small and pull the equity from the primary residence first to start small and work my way up.

Personally I would like to be an active investor, but I think I have a lot to learn before I jump in to manage properties myself etc. I am probably going to start off passive investing with a property manager at first and after a few years, slowly start doing my own properties.

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Originally posted by @Mary Cronin:

Get some education. A lot of the benefits to RE investing are tax related using leverage to your advantage.

At the moment, it sounds like you're paying cash and doing all the work - in other words you have a 2nd job. Additionally, if you rehabbed properties for your use, you may have over-improved the property for rentals. Eg most of us would tell you no more moving parts than absolutely necessary (no garbage disposals, no water softeners, etc.). If you want to keep grounds in good condition, pay a gardener & add the cost to the lease amount.

As far as tenants, hire a property manager and keep out of management. As an investor your job is to manage the managers not the property. If you get a good manager, they'll maximize your returns and keep tenants from bothering you at 2 am.

Thanks, I am new to the whole real estate rental investment idea. Property management is charged as percentage of rent correct? Also I still have to pay third parties such as plumbers etc for incidentals as they come up ?

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Hey there guys,

I have been a working in the software sector and saving up for the last 11 years since college and have bought 2 houses so far but have not rented them out. What caused me to buy 2 houses is that I believe that real estate is a good and safe way to store wealth against inflation. Now I read into bigger pockets and really want to get into the whole real estate investing where I either rent out the properties or refi the properties and pull out the equity to buy more properties. What scares me away is tenant issues which I know will come up at some point, also I renovated the houses myself and put a lot of sweat into them, and reading about properties getting trashed by tenants really scares me away from renting the properties out.

house #1 I bought for 260k and it is now worth 400k-420k , it is currently my vacation home located in Henderson NV (comparable rent is 2000 a month) tax is 2150 a year , insurance is 1400 a year

house #2 I bought for 356k and it is now worth 450-470k in Cary NC. This is currently my primary residence (comparable rent is 2300 a month) tax is 4240 a year , insurance is 1480 a year

I was thinking about doing a cash out refi on my primary residence and then buying a house to rent out and also renting out the Henderson home once I clear the home of my furniture etc. Either that or use the money from the refi and buy a smaller home to live in and rent both homes out. I also thought about selling one of the properties, but from what I have read online, it is better to hold onto the properties and do cash out refis against them if I need the money. Just looking for advice, what would you do if you were in my situation?

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All Forum Posts by: Account Closed

Account Closed has started 4 posts and replied 9 times.

Post: Which neighborhood to invest in Las Vegas

Post: Manufactured home? worth renovating or scrap it ?

Post: Bought my second house for buy and hold strategy

Post: Bought my first house for buy and hold

Post: Interested in buying an investment property in Austin TX

Post: Some Raleigh Durham Questions

Post: Have equity with 2 houses, don't know where to start

Post: Have equity with 2 houses, don't know where to start

Post: Have equity with 2 houses, don't know where to start