All Forum Posts by: Mary B.

Many Mint Hill neighborhoods are on high alert because of the sex house in town (Farmwood) that neighbors fear will bring people that are undesirable to family values into their neighborhood. 

I didn't realize Mint Hill government was this unfriendly to STR. I have been super interested in this market so I appreciate being warned about how much weight they give to neighbor complaints.

I think this tenant got his tactics from the movie Pacific Heights (Michael Keaton). It is a story of the worst tenant in history. Same MO. If you are a landlord and haven't seen it, you should. It could be considered a horror movie for landlords, but good to know how these people operate.

This is the first deal I've seen in my area that comes close to the 50% and 2% rules. I just feel like something must be wrong for it to be such a great deal.

10 unit ranch style apartment building (6) units 1bd/1ba (4)units 2bd/1ba
Asking price $155,000
1bd rents for $300 2bd for $400 - Total $3400/mo

$155,000 X 2% = $3,100

$3,400/2 = $1,700
$155,000 at 5% over 30yrs = $832/mo payment
profit = $868/mo

Owner will finance. Brick built in 1982. All units recently have ceramic tile put down everywhere. Baseboard heat.

Red Flags:
1. This property is in a low income area. I had previously decided not to landlord anywhere that I would not personally (hypothetically) live and this would not fit (My other property is in middle class hoods).
2. I spoke with the owner who stuttered and seemed ill at ease on the phone.
3. Upon looking at the online deed records, I discovered she only bought this place 2 months ago and is already selling.
4. When I google this address, I discover it has been listed on loopnet for sale in 2008 and in 2010 and in 2012.

What is wrong with this property? Why would it change hands so frequently? Would a management company refuse to lease it due to the neighborhood? How can I be sure it has not been a meth lab in the past? (This is my worst fear as a landlord). Any words of wisdom are welcome.

Hi Greg,

I'm on another board for the Charlotte area where I found this thread regarding HOA foreclosure... See what ya think http://www.city-data.com/forum/charlotte/1268256-mecklenburg-homes-owned-hoa-holding-companies.html

Hi Greg,

Our property was auctioned by the first mortgage holder. There wasn't an HOA in the neighborhood. I had researched (in that Register of Deeds room) several properties that were to be
auctioned that day to make sure the titles would be clean and I wouldn't owe anyone else. The mortgage holder that was auctioning the property was the only mortgage holder on our property. This all happened in 2002, so laws could have changed by now. At that time the 2nd mortgage holder was out of luck if the first mortgage holder auctioned off the property. Often the 2nd mortgage holder would show up at the auction and bid. Do you know if BoA held the 1st or 2nd mortgage? Ya know, it's possible that you don't owe anyone else! I sure would love to go to an HOA auction. Where was it? I learned so much by attending the auctions and chatting with the people that knew what they were doing. When I completed the sale, it was at an attorney's office that held a "Trustee's Deed" on the property. I would guess that one of these attorneys that does the trustee deed process would be able to help you in how to proceed. Let me see if I can find the attorney's name. We still live in this house and it worked out to be a great deal and a great house for us.

Jordan - I so admire your heart to help Bob. All the updates of your interactions with him are fascinating! Maybe you can develop a long term friendship with him.

When this story is complete, I hope it makes the local newspaper. You are enhancing the reputation of real estate investors with this transaction. I'm subscribing!

I bought a house in Charlotte at the courthouse once. When you bid at the HOA auction and won, you also bought responsibility for all outstanding loans on the property. Get to the records room at the Register of Deeds office (it's in the courthouse building) and ask them to help you research the deed. They will walk you through how to pull all the paperwork and figure out who is owed. Then you can contact each lender and find out how to proceed. When you get finished there, head upstairs to the liens room where you look for tax (and other) liens which you are also responsible for any that are still outstanding. I'm happy to help you with any questions you have about my experience. If you go to one of the courthouse steps auctions and ask the guys bidding there questions, they are usually pretty helpful at helping you navigate what the process will be.

We are just getting our 2nd property ready to rent. Our first rental property has had the same tenant for 8.5 years. Hoping we can have a long term tenant in the next one also.

Just wondering how long your longest term tenant has stayed?