All Forum Posts by: Cory Melick

What a great meetup and turnout.  I'm glad so many people came out yesterday and that I got network with Like minded individuals.  

Thanks @nasar elarabi for hosting the event and allowing us into the inner workings of your rehab.

Thanks @justice cannie for setting a time and @don Harris for the refreshments.

Hi Guys,

I'm new to Charlotte and REI (less than a year). I plan to make it out tomorrow and look forward to meeting great people doing great things.

That's a great deal.  Congrats. 

@Rob Caldwell - I've heard over and over that the MLS is very difficult because its visible to many, many people, and as Kevin Page pointed out, attracts actual home buyers. I just moved to Charlotte and trying to get a feel for rents, neighborhoods, prices. It certainly seems like off market properties may work better here, or as they say, submit 100 offers (my pricing), entertain 10, and close on 2.

@Audrey Truesdale - Your methods returns very similar numbers that i'm deriving.  I'm glad i'm not the only one arriving at these low offers.

@jon 

@Jon Holdman - Most of the properties look like great deals, until i'm honest with myself and add 1 month vacancy and property management.  1 month vacancy maybe too much, but by nature I error on the conservative side.  I'll manage the first several units myself, but the long term goal is to use property management, or create a system that requires minimal amounts of my time.  Either way, i'm going to factor it in on the front end.  

Hi Biggerpockets!  I need a little help or guidance.  I feel like many of the properties in my area are overpriced. 

I'm looking to purchase SFR properties in Charlotte, NC and the surrounding area (concord/kannapolis). I specifically targeting properties under $100k and that have been listed on the MLS for 120+ days. The reason is i'm hoping some of these owners may be willing to consider some sort of owner financing.

I look at what the property would rent for (rentometer, hotpads, craigslist) and subtract common expenses to determine the NOI. Then apply the cap rate i'd like (10%) to determine my offer. Most of the times my offer is around half of their asking price. I mean I should expect the property to be overpriced to some degree (that is why is still listed after 120+ days) but this seems crazy. And i'm using liberal expenses, if I apply the quick rule of 50%, the situation is even worse.

Ex: 124 Main St. will rent for $1000/mo. Apply 50% rule and your monthly NOI is $500. Yearly NOI of $6K. Apply a 10% cap and purchase price is $60k. They have it listed for $105k. Even if I take out property management the offer price would be $72K.

I know my example basically meets the 1% rule, but after the finance charge, there just doesnt seem like much meat left on the bone. Anyone else noticing this? Are MLS prices just inflated? Is this normal for Charlotte, NC ? Thoughts?

Thanks guys!

Cory Melick

@Wendy Noble

Thanks for advice.  I just read that article and about to re-read the ultimate guide to tenant screening.  Much work to be done, but happy to see things finally coming together!

Hey BP,

I just wanted to share my ongoing, albeit sporadic story. Originally I was supposed to close on a 1.25% SFR in my area. A month away from closing, my wife and I decided to move (WV to NC, so just a little distance). We were able to back out of the existing deal. We have since prepared our primary home in WV for renting. We posted our first PostLets ad last night and already have 3 showings!!! So excited! A want to thank the BP Community for all that I've learned on here and hope to share may success stories here!

Congrats BP!!  That is quite an accomplishment.  A big thanks to Josh and Brandon for all the hard work and preparation they put into each show.  Yall've transformed my dull commute into an engaging learning experience.

My favorite show is the one where they pick on Brandon.....oh wait, thats all of them!

:) 

I'm going to keep the rentals. I just purchased them this year and if I try to sell them, all the transactional costs would put me at a loss.

I'm just trying to figure out if I can put them in an LLC formed in NC

If not, should i put them in an LLC formed in WV, or keep them personally

Thanks!