All Forum Posts by: Sarah Lyon

Investment Info:

Single-family residence buy & hold investment in Jacksonville.

Purchase price: $60,800

My angel of a mother passed September 2017 and left her home in Jacksonville NC, home to Camp Lejeune, to my brother and I. The market was no good for selling and I really had no interest in doing so anyways as the house is a beautifully passive income as it is paid off. So, I used my inheritance to pay him off for it. Rent's $1350 a month. Home value has increased about 10k since purchase due to the market alone, not to mention the renovations and repairs done.

What made you interested in investing in this type of deal?

Opportunity and an eagerness to get involved in real estate investing

How did you find this deal and how did you negotiate it?

My brother wasn't interested in real estate, and still isn't to this day.

How did you finance this deal?

Cash

How did you add value to the deal?

New paint, new carpet, new laminate, pressure washing, landscaping, window repairs, fixture updates, sprayed for pests and did electrical repairs.

What was the outcome?

Was vacant for about 2 months but was rented when we brought the rent down to 1250. The house faired incredibly well through the hurricane that destroyed many houses in the neighborhood and the rest of Jacksonville. Rent was raised for the lease renewal and my tenants have been great. Retired military with teenagers. My neighbors keep an eye on the house for me and I have heard no qualms.

Lessons learned? Challenges?

Make sure your contractor is updating you on the itemized receipt as they go. Also ensure you are both aware of what is needed to accomplish the needed timeline.

Hello! I am in desperate need of some help and I'm hoping y'all can add a little more advice to the situation. 

I am currently purchasing my first duplex in Raleigh, NC and I have run in to a horrible problem. 

Though it's being sold as a duplex, and essentially is a duplex, it is on two parcels of land and two deeds. Originally the lender and realtor decided it could be combined and so I went through with signatures. Now it turns out my realtor and lender miscommunicated somewhere and the lender won't approve the loan. 

I have put 2k down in due diligence  and  I am not eager to lose that money. However I don't see the purchase being incredibly profitable if I went through with it with two loans. 

We have tried with several lenders and nothing has worked. Working with Navy Federal now and really hoping that will work. 

Does anyone have any suggestions? I am desperate. 

Hello BP community,

I am a Raleigh, NC resident currently working towards purchasing my first duplex and though I am still far from making my third investment, I am curious - would I be able to get a traditional bank loan off the equity of my (future) duplex plus the equity from the single family home I have paid off or should I find another option for financing? And if I should find another financing option, what are some good options?

I plan to buy a short term rental in the North Carolina mountains next, but it will definitely be a bit down the road.

Thanks everyone!

Thanks for weighing in! I appreciate any and all advice. I am leaning towards the east Raleigh house due to long term growth potential.

Also, I have looked at a lot of properties I have liked on the lower budget, but when I run the numbers the income I would receive would just make them money pits. I have been using my own spreadsheet as well as Mashvisor

Hello,

I inherited half of my mom's estate about a year ago and decided that the best decision I could make for myself would be to buy a house. I am living in Raleigh and intend on making this my home base for another year or so and want to have a place to live in for that time while I work at converting my van so I can travel and live off the income I receive from my moms house I now own which has it's mortgage paid off. 

I am looking to stay under 350k, however I have found what I feel will be a very profitable place east downtown in a more seedy part but one that is changing quite quickly and it is 370k. The cap rate I have measured is about 5% and the cash return would be about 1.25% while I pay my mortgage off (The extra income will be going right towards the mortgage) and I imagine as the area undergoes more updates and new houses that the rental prices will continue to rise. 

I will be living in the house for about a year or 2 and will not be making profit in the beginning, however I will be renting out the other rooms to roommates and will be paying about about the same amount as them yearly if I were to choose said house.

So what I am really looking for here is some advice as to whether this is a good decision. I don't know if I have really included the details necessary, but I am still quite new at this. Renting out my house and working with a property manager has helped me a bit and I have done a lot of research, however I am still trying to fully grasp understanding of investing in rental properties as this is something I would like to endeavor on to partially pay for my retirement. 

Any suggestions as to areas I should look in with my price limit? Is my price limit too large for a rental? 

I want to have a diversified portfolio of houses and I currently have one in Jacksonville NC (military town, typically have tenants 4-8 years) that is a single family in a suburban neighborhood. I also will possibly be living in this house one day as Raleigh is where I want to set my home base as I am a bit nomadic at this point in my life (27). 

Thanks for taking the time to read this and I hope y'all can shed some light on my decision and help direct me in the right direction!

p.s. I do have a realtor who I love, however she is not a specialist in rental properties.