All Forum Posts by: Nick Schultz

@Brandon Schaffner 

The Raleigh market has appreciated dramatically in the last 7 years. Home prices have out-paced rental rates significantly. It is difficult to find turnkey homes inside the I-440 beltline below $200k. Investment opportunities lie in forced appreciation or fix and flip. Rental properties not so much. Raleigh continues to grow with the expansion of Research Triangle Park and other large corporations setting up offices here. The triangle area has some of the best hospitals and universities in the country. There are rumors of more professional sports teams coming here as well. Raleigh is 2 hours from the beach and mountains, so it can be viewed as a best of both worlds situation. I've lived here for 15 years so if you have any specific questions please feel free to reach out.

Best of luck to you in this new chapter of your life. 

@Ryan Groff I would say anywhere from $60k - $100k. Let me qualify this by saying that I do not work in the residential sector. I work for a GC company that does primarily commercial and industrial work. Another thing to beware of is that because Raleigh residential market is so hot, a lot of contractors are inflating their bids tremendously. For example, I received a $48k quote for my master bathroom renovation that I did myself for $15k. I know this is not unique to Raleigh, but just a suggestion to be cautious and find a GC and/or contractors you trust. 

@Ryan Groff as @Robert Russotti mentioned, downtown properties are required to maintain certain historic preservation requirements, which usually means not altering the street facing front exterior and/or sides. A friend of mine just added to his downtown Raleigh home by extending into the backyard. He was able to add modern siding for the addition but had to maintain the old brick and mortar which was in bad shape and had to be refurbished. 

I see a lot of folks converting 2/1s into 3/2s all over town. My first property was a 3/1 that had an addition which I converted into a 3/2 with a master suite and bonus room. It just got appraised and went up $75k in value! The permitting office has been very friendly and easy to work with in my limited experience. 

@Bellman Tumasang When I bought the house it had 4 bedrooms and 1 bathroom. I converted one of the bedrooms into a master bath. 

@Allan Smith thanks so much for your perspective! 

I'm currently living in my first house and would move to the next if it were a multi-family; Live it one unit and rent the other(s). If it is a SFR deal that I find it would be strictly a rental and I'd stay in my current house since my current house cannot meet the 1% rule. Are there any drawbacks to refinancing twice in a short period besides the additional closing costs?

Hello BP!

I bought my 1st house in August 2018 for $268k. It was a 4/1 that I converted into a 3/2 with a master suite. My latest appraisal came in at $340k just last week. I want to make a move for my 2nd property but I do not have a lot of liquid cash currently. My ideal 2nd property would be a buy and hold rental SFR or duplex/triplex. It seems like my options are:

1. rent my current house for $1800-1900 (my guess based on current market) and buy a 2nd place with low down payment loan. I got my 1st house with 0 down @ 4.875% through my credit union. Current mortgage payment is $1450

2. sell the house and use the cash for down payments on 1-2 other properties. I owe $260k on the current mortgage and I’m not quite sure how to calculate how much I’d net after closing costs, fees, and taxes. Any rules of thumb I can go by?

3. cash out refinance. Not sure this is a viable option since I just refinanced at lower interest rate to drop the monthly mortgage payment. 

4. Get approved for a HELOC and use it when I find the right deal.

I would love to hear your feedback and ideas. Thank you so much for your time!

@Ryan Smith Have you checked rental rates on Craigslist, FB marketplace and Zillow? I've noticed SFH rent rates seem to be slightly less than by-the-room for 3/2s, but it is pretty close.

@Derek Harris This was for a plot of land for new construction. The deal was through a wholesaler and they passed along the owner financing terms for my consideration. I don't believe conventional financing would be an issue. 

Hi! I’m new to BP and real estate so I’m hoping to connect and learn from the community. My first question: What would you consider reasonable terms for seller financing? I’m sure it varies quite a bit based on the situation but I’m looking for general guidelines. I had a seller offer financing with the terms being 60% down, 8% repayment in 6 months. Any feedback greatly appreciated! I’m in the Raleigh NC area for reference. Thanks!