All Forum Posts by: Patrick Knapp

@Nandini Abburi

Welcome, I'm a full time investor and I have BRRRR a bit and can tell you Raleigh is a tough market to make any cashflow in. Sadly housing and rents aren't close to comparison in the way we should see them.

I suggest Build,Rent, refinance, repeat. I'm a builder here in the area as well and this seems to be the best was to maximize your chances of cash flow if you build an ADU with you new build.

Why not just buy and fix up? The deals are harder to find now and it seems to always go over budget.

Your welcome to message me if you have more questions

@Nick Morrow

Message me

@Jordan Bedminster

Hey man, I’m an army vet and full time investor in Raleigh. Message me if you want to connect

So if you guys don’t know who I am, I’m Patrick Knapp. I’m a full time investor and builder in the Raleigh area.

I hear time and time again how there is no way to cash flow in today’s market. If you take a look at it with a glance ya it’s not an easy thing, but it is still possible. You have to get creative and know what options you have.

Building is the best option imo, so you'll have to buy and tear down it seems like nowadays. So that's what I've been doing with my family. We currently are under contract to buy a .3 acre lot in downtown that is in a frequent transit area, which means we are allowed to build two accessory dwelling units on the lot. we are also zoned for a duplex, so that's the plan! Duplex that will rent out at 3k each side, 1.5k each ADU. Grand total of 9k of potential rent from this property.

There will end up being 4600 sq ft of floor space for all buildings combined. Also we plan to have the ADUs handicap/wheelchair accessible on the first floor.

We are paying $300k for the land and as a builder my costs are lower but let’s use retail so it’s safe. 900k build so a grand total of $1.2mil

If you put 20% down and refinance in a year from now at 5.9 (realistic to me) that would be $24k net after taxes, 7% put for capex and repairs(it’s new), and insurance. Plus 12k pay down every year.

After seeing these numbers and comparing to the cost of buying out right it’s easy to see that building is the best way to go.

I will be doing a video series to track the whole thing for everyone if I get enough interest.

Tell me what you think?

@Harish Maiya

Would you be interested in building new construction multifamily in the area? I’m a builder and investor, I tell a lot of people the best way to invest into real estate at this time is to build it.

Raleigh zoning allows a lot more flexibility now thanks to many changes.

R-4 allows duplex’s with ADUs

R-6 is the same plus multifamily in townhouse forum

And R-10 is for high density apartments

Best to look into the UDO and on IMAPs for wake county to see zoning, if it’s in a frequent transient zone which allows two ADUs.

@Andrew Garrett

I’ve been investing in NC for a while, the main issue with Raleigh is rents are low compared to costs of homes.

So imo this is a market to buy for equity and not cash flow.

@Daniel Angelino we have a meet up Wednesday that @Ryan Casady hosts at Raleigh beer garden around 6 pm

@Ryan Casady so no tag for me….. how dare you lol

@Nick Sokoloff

Raleigh investor/General Contractor here.

This market is amazing, but long term rentals are hard to cashflow here just so you know. It’s a pretty solid market imo though.

Buying a new build could be a good idea as well to prevent maintenance costs, but if you’re trying to BRrrr than bad idea.

Personally I’m building a 3/2 1200 sq ft in Durham we plan to sell near the regional hospital at 425k which would be a good rental(mid or short).

Durham has had a rough time in the long term rental game just so you know though. I believe it probably has to do with tech layoffs but I’m not sure…. But it’s a great market still. Biggest thing is to see what’s being built in the areas you’re interested in, apple is building there campus so that’s gonna affect us a lot.

Hope this helps

@Missy Orr

Reach out to Eldreth law firm in raleigh and tell them I sent you