All Forum Posts by: Ryan Overcash
Ryan Overcash has started 13 posts and replied 52 times.
Post: First Househack! Mortgage almost covered first year!
- Real Estate Agent
- Raleigh
- Posts 53
- Votes 35
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $247,000
Cash invested: $13,000
Househacking a single-family residence in Garner, NC
What made you interested in investing in this type of deal?
The goal of this deal wasn't to maximize the return on my money, but to get started with househacking. I bought the home for $247,000 in June 2022 (middle of pandemic) and quickly found 2 roommates paying $1200/month in rent. This almost covered PITI which helped me save quite a bit of money over the next 2 years. The 2 roommates have moved out, so I'm considering renting the whole house and moving on to the next!
How did you find this deal and how did you negotiate it?
Listed at $250k on the MLS and got it for $247K during peak Covid concerns. Sat on the market for a month and was able to negotiate $2500 in seller closing cost due to termite inpsection.
How did you finance this deal?
30-year 3% conventional loan at 2.99%... the 3% made sense at such low interest rates
How did you add value to the deal?
No value add, but I do have a sweet garage gym.
What was the outcome?
Home has appreciated to ~400k and will likely rent out this year at $2200/month
Lessons learned? Challenges?
Two story homes should have an HVAC unit upstairs and downstairs. HVAC went out the first 2 summers. Yardwork and home maintenance can be fun but eat up time.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I worked with an agent, but I am agent now.
Post: What are the top 5 zip codes in Raleigh, NC for residential?
- Real Estate Agent
- Raleigh
- Posts 53
- Votes 35
Quote from @Account Closed:
Quote from :
The highest gross rents will come from the most expensive neighborhoods. Link.
If you are more interested in the highest cash flowing neighborhoods, as of May/June '22 you will be hard-pressed to find (LTR) cash flowing properties in the Triangle after subtracting maintenance, cap-x, vacancy, and PM services.
If you are interested in speculating market appreciation in the Triangle, S. Durham, Cary, Apex, and Holly Springs are safe bets but of course, I'm speculating. Wake Cty has very low property tax, Durham Cty slightly higher and Chapel Hill (one of the most beautiful cities) located in several counties has the highest property tax.
To your question about turnover/vacancies that will be a function of the quality of the PM that you hire.
Another city to keep your eye on now that they have begun construction is Pittsboro. Specifically, Chatham Park. They are at the beginning stages of a 22K home build-out. They optimistically reference this city as turning the 3 legs of the 'Triangle' into the 4th leg, expanding the in-demand cities in Central NC.
@Chris London Thanks for letting me know that Chris. I'm more interested in the Class A cash flowing neighborhoods - not much at all on market appreciation. Do you have 5 zip codes that you would recommend for 2/1s, 3/2s SFH that are newer construction?
To save you time, I'm not sure that Class A cash flowing neighborhoods exist in Raleigh, NC unless you can find a needle in a haystack... and if you can please let me know:)
In the A class areas around here you're looking at $600k+ homes that rent out for $3,500 if you're lucky. I don't view Raleigh as the best rental market for the time being. Agree with Chris that looking out towards Pittsboro and West of Durham could be a good idea. Good luck!