I really want to get into the North Carolina market and was looking for some advice to which cities I should focus on? And would like to connect to agents and other investors.
Investor 路 Boise, ID 路 Member since 2014 路 3k+ posts 路 3k+ votes
3y
Really great info from Drew above.
The simple answer to your question is the BEST place to start is house hacking small MFH. Buy a duplex, fourplex, whatever, once per year and leave it behind as an investment property.
If you do this once per year for 5 years, you'll be amazed at how it's changed your life.
Is it easy with a young family? Obviously not. But missing their school plays and baseball games because your boss scheduled a team building session isn't so easy either.
Hello and welcome! I am a local licensed real estate agent in NC. I was born and raised here, so I know the area well. For starters, I need more info on what type of investment you are looking for (flipping or renting, etc.). However, the best area for renting and flipping is the Fayetteville area due to Fort Bragg (military base). If you have any questions or need a real estate agent, I would love to help the more information I have, the more I can assist. I have access to a property management team and contractors if needed. Feel free to contact me anytime.
Beginning investors need to STOP believing all the fluff about rental investing, especially with the overheated real estate market trending to historic norms. Many believe unrealistic assumptions and often apply those assumptions to the wrong property classes.
In our OPINION (always verify yourself!):
Class A Properties:
Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.
Vacancy Est: Historically 10%, 5% the more recent norm.
Tenants: Majority will have FICO scores of 680+.
Class B Properties:
Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.
Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.
Tenants: Majority will have FICO scores of 620+, some blemishes, but should have no evictions in last 5 years
Class CProperties:
Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation. Can try to reposition to Class B, but neighborhood may impede these efforts.
Vacancy Est: Historically 10%, but 15-20% should often be used to also cover nonpayment & evictions.
Tenants: majority will have FICO scores of 560-600, many blemishes, but should have no evictions in last 2 years. Verifying previous 2-years of rental history very important!
Class DProperties:
Cashflow vs Appreciation: Typically, all cashflow with zero or negative relative rent & value appreciation
Vacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.
Tenants: majority will have FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, recent evictions.
Make sure you understand the Class of properties you are looking at and the corresponding results to expect.
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Investor 路 Boise, ID 路 Member since 2014 路 3k+ posts 路 3k+ votes
3y
Really great info from Drew above.
The simple answer to your question is the BEST place to start is house hacking small MFH. Buy a duplex, fourplex, whatever, once per year and leave it behind as an investment property.
If you do this once per year for 5 years, you'll be amazed at how it's changed your life.
Is it easy with a young family? Obviously not. But missing their school plays and baseball games because your boss scheduled a team building session isn't so easy either.
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