I am planning for purchase a new construction home in Charlotte (Monroe). Close to Monroe Crossing Mall. This will be a 4/5 bed SFR. I wanted to buy and hold it as a long term investment. Any thoughts or suggestions. Is it relatively easy to find tenants in this area? I am an out of state investor. Any help would be appreciated.
Real Estate Broker · Concord, NC · Member since 2019 · 74 posts · 42 votes
5y
Hello @Vik Hogan are you planning to rent by the room or as a SFR? It will be interesting to see the numbers you are looking at to see its potential. You can DM me if you like to share details.
Real Estate Broker · Matthews, NC · Member since 2017 · 135 posts · 99 votes
5y
@Vik Hogan Relatively easy to find tenants for entry level homes in the area (1400-1650). I can't speak to larger homes as that's not our bread & butter.
Thanks Colleen and Carlos for your response. I would rent it as SFR. Purchase price is 295k and will be do 20% down. This is about 2500 sq foot. Is it extremely difficult to find renters who can pay 1850 to 1900 in this area? I see a new toll road and lot of shopping around this area. Great schools. This community is just started to build so the builders will tend to increase the price in every phase.
Real Estate Broker · Charlotte, NC · Member since 2017 · 88 posts · 44 votes
5y
@Vik Hogan If you are talking about the new build complex by Lennar, I am helping an out of state investor right now to purchase one himself. I just talked to a property manager about it yesterday. It's a brand new build be done in May 2021, 5/3 and about 2,600 sq ft. This is the response I got from the PM.
-Fair market rent should yield you at least $1,750-$1,850 fairly easily as long as the lot sizes aren’t tiny. So probably about .22+ acre.2.
-Your pool of renters will be smaller than the city of Charlottes pool of renters but I honestly don’t think it will be tough. It might take a little bit longer but I can’t imagine it being much longer.
The cash flow will not be there but he is banking heavily on the tax write-off each year, the appreciation both natural from the economy and forced from new homes going up in the complex, and lastly, the mortgage pays down by the tenant. With a new build, your repair expenses and capex are nearly nonexistent for the first 3-5 years. I hope this helps and would gladly help out as well if you are interested in it for your purchase and being 'boots on the ground' for you.