New RE Investor interested in greater Charlotte

North Carolina Real Estate Q&A Discussion Forum
7yFollow

New RE Investor interested in greater Charlotte

Anduril Elessar
Member since 2018 · 6 posts · 1 vote

Hello everyone - 

I wanted to introduce myself to the forum. Been an avid bigger pockets lurker for quite some time and I'm gearing up to actively invest with my family in RE utilizing the BRRR method as well as looking for simple cash flowing properties. My parents are contemplating a move to Charlotte for some family reasons and are looking for work. We've heard a lot about the real estate market there and we're interested in building out a portfolio of cash flowing properties. Over time we'd like to move into more appreciation type markets but for now we like BRRR.

We're from NY and are trying to understand if the Charlotte (and any smaller cities up to 2hrs away offers good opportunities). We have a little under $1M that we're looking to allocate toward investments in the area. My day job is in the VC industry so being able to manage properties from out of state would be important. 

Would love to speak to anyone local that might be able to help provide some color, assemble a team, and potentially tackle some deals together. Looking forward to hearing from you and continuing the conversation. Thank you for your valuable time!

1Reply
18 views

Most Popular Reply

Laura Shinkle
Realtor · Charlotte, NC · Member since 2017 · 357 posts · 292 votes
7y

@Anduril Elessar welcome to the forums of BP! Some markets you get all cash flow and little to no appreciation and some you have appreciation but negative cash flow. Charlotte is a great market because it straddles the appreciation market and the cash flow market fairly well.  Certain neighborhoods, of course, are better than others. 

The Charlotte region population increase is over 2%, and surrounding counties like Lancaster and York are seeing even higher increases than that. We are only seeing an increase in housing at about 1.3%. This demand for housing is causing the amazing appreciation that we've seen in the past few years. 

Another affect of this demand is that good properties have been flying off the shelves. As @Daniel Shchyokin pointed out, though, there are a lot of price reductions. The market is slowly shifting from a sellers market towards a buyers market, especially in the higher price points. Buyers are tired of having to decide in an hour whether or not to buy a home so the market is reflecting that push back. However, most homes in the sub $200K price point are gone within a week, if not days. If they aren't, there are most likely major issues with the property, whether structural, neighborhood, or overpriced.

I really like the university area for investing since you should always have plenty of tenants. Gastonia, Indian Land, Concord are good areas as well. 

If you would like to speak more specifically about your situation and what you are looking for, I'd be happy to chat with you. I am a local agent here in the Charlotte area and service clients within a 50 mile radius of Center City. I love helping serious investors who are looking to start or build a portfolio! It's really the only kind of investing that makes sense to me! Feel free to reach out if you would like to chat!

4Reply
See this reply in the discussion

16 Replies

Jump to latestLatest
  • Daniel Shchyokin
    Investor · Greensboro, NC · Member since 2018 · 21 posts · 7 votes
    7y

    Looking too in Charlotte too (from San Francisco), so far have hhave had trouble getting realtors to give me the time of day, though i am seeing a lot of reduced properties lately so maybe things are cooling

    1Reply
  • Raul R.
    Rental Property Investor · New York City, NY · Member since 2017 · 493 posts · 386 votes
    7y

    NC is a great Market you can get good appreciation and decent cash flow but its getting harder finding good cash flowing properties in the major cities, Its very competitive. If you will be investing OOS I suggest stick to the major market w airports.. If you're from NYC you'll have plenty of flight options and prices are reasonable.. As you get experience than you can start looking into the smaller markets. I have a flight schedule for next week round trip $150..

    1Reply
  • Matt D.
    Flipper/Rehabber · Charlotte, NC · Member since 2019 · 19 posts · 10 votes
    7y

    @Anduril Elessar I'm local to Charlotte and in the same boat as you in many ways--long time interest, just now getting my hands dirty on a couple deals, trying to find rockstars and potential partnerships.  So, I'm sure there are others that could provide much more wisdom, but I'd love to be part of the conversation!

    1Reply
  • Anduril Elessar
    OP
    Member since 2018 · 6 posts · 1 vote
    7y

    @Raul R. Sounds like you've been making investments in the area based out of NYC? Would love to talk more and grab a coffee in NYC sometime. From what i've heard, folks have started to look outward to other areas like Gastonia, Concord, etc. I haven't seen those areas just yet but planning to make a trip soon. 

    @Matt D. I'd love to chat with you! Always appreciate a local voice to learn more about what's happening. How long have you lived in Charlotte for? How are your initial deals going? 

    0Reply
  • Anduril Elessar
    OP
    Member since 2018 · 6 posts · 1 vote
    7y

    @Daniel Shchyokin Interesting to hear that, I haven't reached out to realtors yet, but I guess that anecdote tells me that properties move relatively quickly? What other markets are you looking at? Interestingly enough, I probably spend my time 60% in NYC and 30% in SF so I'm out there relatively frequently....of course those two markets happen to be way to expensive for any cash flow investing. 

    0Reply
  • Raul R.
    Rental Property Investor · New York City, NY · Member since 2017 · 493 posts · 386 votes
    7y

    @Anduril Elessar

    All my Properties are in Northern CLT no more than 15 min apart from each other in U. area. I never visited CLT until I started investing, as a OOS investor Im in a disadvantage w the locals so I make sure to know my small area/market very well. I just closed on a property last week never seen the property seeing it for the first time next week when I first started wouldn't feel comfortable doing that now I do.

    Right now CLT and all surrounding areas are hot my concern is what will happen when there's a Recession or Slowdown. Ive been investing now for 3 years all I knows is a Seller Market I want to make sure I can continue finding quality tenants in any type of market.. I feel if there is a Slow Down the outer markets typically get hit the hardest so I prefer investing in the U. area of CLT.

    My goal is to be in it for the long term, right now it doesn't take much.. Anyone who's bought in the last couple of years and just hold on to it is making money on Appreciation in CLT or Raleigh. The true test will come on the next downturn whenever that happens. I strategically try to buy in areas where I feel there will be a demand for my properties in any type of market..

    0Reply
  • Patrick Menefee
    Real Estate Coach · Charlotte, NC · Member since 2016 · 399 posts · 341 votes
    7y
    Originally posted by @Anduril Elessar:

    @Raul R. Sounds like you've been making investments in the area based out of NYC? Would love to talk more and grab a coffee in NYC sometime. From what i've heard, folks have started to look outward to other areas like Gastonia, Concord, etc. I haven't seen those areas just yet but planning to make a trip soon. 

    @Matt D. I'd love to chat with you! Always appreciate a local voice to learn more about what's happening. How long have you lived in Charlotte for? How are your initial deals going? 

    Anduril glad to have you in Charlotte! I moved here a year ago, bought my first home as a primary residence this month, and am looking into my first deal with some partners now. 

    A group of us started a Charlotte area GroupMe recently to share knowledge and hopefully get a meetup together very soon, shoot me a message with your number if youd like to join!

    2Reply
  • Laura Shinkle
    Realtor · Charlotte, NC · Member since 2017 · 357 posts · 292 votes
    7y

    @Anduril Elessar welcome to the forums of BP! Some markets you get all cash flow and little to no appreciation and some you have appreciation but negative cash flow. Charlotte is a great market because it straddles the appreciation market and the cash flow market fairly well.  Certain neighborhoods, of course, are better than others. 

    The Charlotte region population increase is over 2%, and surrounding counties like Lancaster and York are seeing even higher increases than that. We are only seeing an increase in housing at about 1.3%. This demand for housing is causing the amazing appreciation that we've seen in the past few years. 

    Another affect of this demand is that good properties have been flying off the shelves. As @Daniel Shchyokin pointed out, though, there are a lot of price reductions. The market is slowly shifting from a sellers market towards a buyers market, especially in the higher price points. Buyers are tired of having to decide in an hour whether or not to buy a home so the market is reflecting that push back. However, most homes in the sub $200K price point are gone within a week, if not days. If they aren't, there are most likely major issues with the property, whether structural, neighborhood, or overpriced.

    I really like the university area for investing since you should always have plenty of tenants. Gastonia, Indian Land, Concord are good areas as well. 

    If you would like to speak more specifically about your situation and what you are looking for, I'd be happy to chat with you. I am a local agent here in the Charlotte area and service clients within a 50 mile radius of Center City. I love helping serious investors who are looking to start or build a portfolio! It's really the only kind of investing that makes sense to me! Feel free to reach out if you would like to chat!

    4Reply
  • Anduril Elessar
    OP
    Member since 2018 · 6 posts · 1 vote
    7y

    @Patrick Menefee - Sure I'll DM you my number. I noticed everyone more or less uses his or her real name? My name is just a LOTR reference here but I guess I should change it... Definitely interested to have some more conversations.

    @Laura Shinkle - Thanks so much for the detailed post and some quick market level stats. Would love to talk to you and discuss further. I'll DM you. 

    0Reply
  • Laura Shinkle
    Realtor · Charlotte, NC · Member since 2017 · 357 posts · 292 votes
    7y

    @Anduril Elessar I get a little carried away sometimes!...but I hope in a good way! Looking forward to connecting!

    0Reply
  • Sid Montero
    Member since 2019 · 19 posts · 2 votes
    7y

    @Laura Shinkle  What is your opinion on Enderly Park and Thompson-Hopkins Neighborhoods? 

    0Reply
  • Laura Shinkle
    Realtor · Charlotte, NC · Member since 2017 · 357 posts · 292 votes
    7y

    @Sid Montero I think Enderly Park is definitely transitioning, however not quite there yet. In the future, these neighborhoods may be some prime real estate since city counsel recently approved the plan for the CATS silver line that will run W-E from Belmont to Matthews and run fairly close to these transitioning neighborhoods. Areas around public transit generally do well. Just look how Southend has changed since the Blue Line. 

    What parts of town are you eyeing for your next investment?

    0Reply
  • Sid Montero
    Member since 2019 · 19 posts · 2 votes
    7y

    Just signed a contract in Enderly Park.  Can you recommend a good home inspector?

    0Reply
  • Laura Shinkle
    Realtor · Charlotte, NC · Member since 2017 · 357 posts · 292 votes
    7y

    @Sid Montero your real estate agent should have a team that they work with who come recommended. Or are you an unrepresented buyer?

    0Reply
  • Sid Montero
    Member since 2019 · 19 posts · 2 votes
    7y

    @Laura Shinkle yes got it.  Everything now scheduled. Thanks!

    0Reply
  • Laura Shinkle
    Realtor · Charlotte, NC · Member since 2017 · 357 posts · 292 votes
    7y

    @Sid Montero woohoo!! congrats and best of luck with the transaction!

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free