All Forum Posts by: Peter K.

Leonardo,

What's your purpose for moving the current primary residence into an LLC? Is this more for tax strategy or asset protection? Most people move their previous properties (such as primary) into LLC more for asset protection than for tax purposes. Unless you qualify as a Real Estate Professional Status (REPS), you'd have same tax benefits rather it's in your current name or an LLC. It also depends on if your itemized tax is higher than standard deduction for you to write off your real estate taxes...

Bottom line, talk to your CPA on this since this seems more like a tax question than an asset protection question. If it's the latter, talk to an asset protection attorney.

Hey @Paul Elston, I work in the Triangle (Raleigh-Durham), let me know if you need any help with your search here.

It depends on your strategy: are you looking to do a long-term rental or short-term? or even a mid-term? The biggest difference between a townhome that has an HOA vs. any other props without an HOA are the bylaws & restrictive covenants.

Some HOA's have investor caps & rental rules for short-term, etc.

You run into a similar issue with single family or even multi-family if it has an HOA. So I think your question applies to properties with or without an HOA, rather than it being a "townhome". Not all townhomes have an HOA - especially the older ones.

Hey there,

I'm a broker based in Chapel Hill, Raleigh, Durham (NC) region. Give me a shout. 

Absolutely, your insights on the Raleigh market and its surrounding areas are spot on. The preference for proximity to work and lifestyle amenities, despite slightly higher rents, underscores the importance of location in tenant decision-making. With a substantial down payment, targeting the suggested price range within Raleigh limits is not only possible but strategic, considering the city's job growth and vibrant community.

However, as you've wisely pointed out, the expansion towards outlying areas like Selma/Smithfield and Benson brings both opportunities and challenges. The prevalence of HOAs and rental restrictions in these burgeoning communities is a crucial factor to consider. It's a reminder to meticulously review covenants and restrictions before diving into investments, ensuring that your business strategy remains viable and legal. This advice is invaluable for anyone looking to navigate the complexities of real estate investment in rapidly evolving markets.

1. Here's my take as an investor/broker that's been in Raleigh, NC for a long time:
   
   Why Raleigh? Raleigh stands out due to its position in the Research Triangle, a hotbed for technology, education, and healthcare sectors. This unique positioning drives consistent job growth and attracts a steady influx of residents, bolstering demand for rental properties. The city's diverse neighborhoods cater to various budgets and lifestyles, enhancing its appeal to a broad tenant base. Moreover, North Carolina's property taxes are generally more favorable than those in Texas, offering a better return on investment over time.
2. Exploring Other NC Cities: While Raleigh is my top pick, Charlotte and Durham also offer compelling investment opportunities. Charlotte's burgeoning financial and tech industries create a dynamic rental market, while Durham benefits from its proximity to top universities and research facilities, part of the Research Triangle. Both cities exhibit strong economic foundations and growth potentials, similar to Raleigh but with their unique draws.
3. SFH vs. Multi-family Units: The preference for SFHs in good neighborhoods is well-founded. Single-family homes tend to attract longer-term tenants seeking stability, which can reduce turnover and management challenges. This preference is especially relevant in Raleigh, where many neighborhoods are family-oriented, enhancing the appeal of SFHs. While multi-family units can offer higher cash flow, they often come with increased management complexity and tenant turnover, aligning with your goal to minimize hassle.
4. Investment Allocation: With a budget of $300k, diversifying across several SFHs in Raleigh could maximize both cash flow and appreciation potential. This strategy takes advantage of Raleigh's growing market, where strategic investments in select neighborhoods can yield significant returns. Your budget allows for a balanced approach, spreading risk while tapping into different segments of the local real estate market.

Raleigh's real estate market is characterized by its resilience, growth potential, and appeal to a wide range of tenants. These factors make it an attractive option for your investment criteria, balancing cash flow and appreciation prospects in a stable economic environment.

Hello @Matthew Murray,

Thanks for sharing your situation. Given your age, the equity you've built, and your goals, selling could indeed be a smart move. Your property in the Lake Park community offers a significant opportunity (I've had rentals there in the past I off-loaded), especially in the current Raleigh market which is witnessing strong demand for properties like yours.

By selling now, you could capitalize on the equity you've built to reinvest in properties that better align with your investment strategy and require less hands-on management. This strategic move could not only enhance your portfolio but also provide you with the financial cushion you're seeking, allowing for greater flexibility and potential for growth.

If you're contemplating selling, I'd be more than happy to provide you with a comprehensive market analysis and guide you through the selling process to ensure you maximize your investment. Let's discuss how we can turn this opportunity into a stepping stone for your future goals.

Feel free to reach out to me. Your investment journey is just beginning, and I'm here to help you make the most of it.

 I operate out of Durham/Raleigh, NC and there are opportunities if you know where to look. A bunch of gentrification areas for opportunities.

Quote from @Chris Martin:

There are still a lot of new apartments under construction. I would expect vacancy rates to remain elevated for several quarters, which will keep pressure on rents and possibly lead to concessions by apartment owner/operators. Source: CoStar

 I agree with that sentiment. What's more interesting is as we creep up on the Spring/Summer selling months, how that would impact inventory. My guess is inventory will have an uptick as sellers list & buyers look at potential homes given interest will eventually come down.

Is there any traction to this thread? Looks like it died on the vine but very interested to see if there was any progress.