Becoming frustrated in Charlotte

[Ricky Stafford]

I'm currently in NC and have decided I'd probably just like to stay here - since there's a little bit of everything. I am looking to buy my next primary home/second rental. I plan on buying it, living in it, renting out a few rooms, and eventually renting the entire thing when I have another home lined up.

But, I'm getting a little discouraged. In Charlotte, I'm seeing a lot of $150k purchase prices for something decent/updated with only $1.1-1.2k rent prices. This would work - but is by no means a deal and wouldn't leave much room for error. The problem is, if you start to go under about $110k, you're limited to just a few, rougher neighborhoods. And the houses still need work usually. It seems even B+ neighborhoods start at around $250k. Raleigh is almost the same story and has definitely become more competitive.

So, how are you finding your deals? I realize I can just start offering what I'd pay on every property I like, but I don't want to waste my time or the agent's. I know my situation is a bit unique, because I want to live there first in a good neighborhood and close to everything (plan on renting STR rooms), but I also don't want to overpay so that I can't rely on profit from a LTR. Are investors just accepting the 0.6-0.8% rent/PP ratio?

Any ideas, insight, or advice would be appreciated.

[Gonz Trevino]

Can definitely be tough. Currently experiencing similar issues in Texas. I have connected with many different wholesalers, real estate agents, and other investors and its been a struggle but everyone once in a while a real deal pops up. Are you willing to put a lot of the work yourself (sweat equity) to get houses under market value and save a lot on the repairs? As some people say on this forum "You are young and you can get on the roof yourself." lol

There are definitely deals, however in a market with low inventory / sellers market you definitely will be having trouble finding the cash flow you want. Good luck!