Looking to make my first purchase in NC. Any advice?

18 Replies

Hello all, 

I have been saving for about a year now and am finally in a solid position to buy my first property. I have always planned to house hack my first property in California (Where I live) but I am starting to really like the idea of purchasing a SFH out of state and in NC specifically. After a little research it seems like a growing area and the company I work for actually has a branch there. Although I do not plan to move I can always go there for a bit at a time and still work if need be.

I am looking for ANY advice you all may have since you are the pros!! I will be going to Tennessee in about two weeks to check out the RE there and hope to visit NC in the next month or two. This will be my first property and want to do everything I can to get prepared and make the best decision possible. I am currently looking in Charlotte because that is where the company I work for is located but am totally open to any other areas in a reasonable distance. 

Any advice would be greatly appreciated! Whether it be advice on NC, Charlotte, buying a first property, how to meet people there. I need all help I can get:)

Best,

Elijah

Elijah, My advice to you in one word would be: Don’t. Don’t buy right now. The market has absolutely lost it’s mind. We live in Greensboro NC. The couple across the street put their house on the market a few weeks ago. I stopped counting after about the ninth showing in the first day and it sold for $5k over asking in two days. A friend of ours just put their house on the market and it sold in six hours. If you plot the duration it takes to sell a house in NC six months is the average. Right now it is extremely seller favored and if you compete in this environment you’ll lose. I would recommend using your time to meet face to face, as long as they are comfortable, with vendors who you’re interested in. Interview a handful of property managers and agents. They will take you more serious knowing you were willing to travel so far and it will help build the relationship and help identify the vendors you want to work with. Good luck!

@Jason E. Smith

Hi Jason, Really appreciate that advice and think that sounds like a great idea! I work in the mortgage industry and can see first hand that this is a sellers market. Although it is a tough pill to swallow because I have been waiting for a while and finally feel ready but definitely don’t want to start off on the wrong foot. And who knows, maybe in a couple months even be upsidedown on my home. Love the advice of still going to meet people and getting ready to roll when the time comes though. Thank you so much!

@Elijah Householder

The housing market is hot everywhere and people are buying. There is no indication that the market will be slowing down while interest rates are low and more dollars are being printed. By holding off a year or two, the prices may be even higher and you would lose 1-2 years of debt pay down and cash flow.

Since you work in the mortgage industry, you know that the loans being given out now is not like what was being lent out in 2006. The forbearance is an unknown but I suspects the banks will not foreclose rapidly as they saw how much the prices in 2008 dropped due to them doing so.

Have a plan and execute. Real estate investing is not a sprint and it’s also very forgiving the longer you hold it.

Hey @Elijah Householder , we can help you with a househack here in Charlotte. It's a very very very competitive market around here, so you have to be willing to go after "diamond in the rough" properties to compete. Are you considering larger houses with spare bedrooms to rent out or small multifamily properties? We have incredibly low inventory right now for small multis, so most people are having better luck with larger SFR's. PM if you have any questions!

Originally posted by @Stone Jin :

@Elijah Householder

The housing market is hot everywhere and people are buying. There is no indication that the market will be slowing down while interest rates are low and more dollars are being printed. By holding off a year or two, the prices may be even higher and you would lose 1-2 years of debt pay down and cash flow.

Since you work in the mortgage industry, you know that the loans being given out now is not like what was being lent out in 2006. The forbearance is an unknown but I suspects the banks will not foreclose rapidly as they saw how much the prices in 2008 dropped due to them doing so.

Have a plan and execute. Real estate investing is not a sprint and it’s also very forgiving the longer you hold it.

 Hi Stone, Thank you for your response. I do appreciate the advice. I know many say that good deals can be found in any market. So I believe as it sounds like you do that there is still opportunity but I just need to put in the work and time to learn more about it.

Again, I appreciate the response! 

Elijah

Originally posted by @William Allen :

Hey @Elijah Householder, we can help you with a househack here in Charlotte. It's a very very very competitive market around here, so you have to be willing to go after "diamond in the rough" properties to compete. Are you considering larger houses with spare bedrooms to rent out or small multifamily properties? We have incredibly low inventory right now for small multis, so most people are having better luck with larger SFR's. PM if you have any questions!

Hi William, Thank you for responding! I am currently considering a SFH. I do not plan to live in NC so house hacking would not really make sense. I can afford to house hack in California by putting about 15% down but should be okay to buy a SFH in NC with about 20-25% down. I will be sure to reach out!

Best,


Elijah

 

Hi @Elijah Householder , I'd encourage you to definitely buy right now. Per a few previous comments, yes the market is absolutely hot right now, but consider a few things: 1) If you can make it work in a tough market, you'll soar and be a beast in a down/easy market. Use this time to develop criteria and make very smart, conservative investments. 2) Do you only buy stocks when the market is down? I hope not, you probably do some form of dollar cost averaging and then invest more heavily or take advantage of market dips. Why would RE be any different? The amazing deals will just be harder to come by, but that doesn't mean you just don't do anything. You just have to smarter than the next guy. 

@Elijah Householder

The concord and Gastiona areas are good for SFR's currently anything inside the 485 loop is expensive or is geared to full rehab projects with multiple offers being placed on day 1.

@Elijah Householder - I’m in central NC, but also have properties in the Asheville area. As others have said, the market is quite hot for housing in general, however, I wouldn’t say it is impossible to find opportunities. Take a look at the major metros as well as some secondary markets.

Your primary markets are going to be Charlotte, Raleigh-Durham, Wilmington, Asheville, and Greensboro/Winston Salem, might also throw in Fayetteville. Secondary markets to consider are Hickory, Statesville, Boone, and Burlington/Elon areas.

The secondary markets still have some opportunities, especially if you find them within a 45 min drive to a major market. I think your goal should be to identify 2 maybe 3 markets you want to focus on, come to NC and find a good realtor to work with in each of those markets then work with them to get out to check out houses as soon as they hit the market.

If you come out and you come to Winston Salem or Asheville, give me a holler, would be happy to meet up.

@Elijah Householder We are currently buying in the Triad area (mostly Greensboro and Winston-Salem).

We have 8 single family homes there now and our goal is to increase that number to 50 within the next 2 years. But we use the lease option strategy rather than just rentals because rentals tend to take about 3 times the amount of time to manage than a lease option property. So we are able to run the business remote from Arizona because it is less to manage than a rental portfolio. If you are wondering about how lease options work, I just posted a YouTube video on it yesterday going into detail explaining it.

@Elijah Householder , like the others have said - the North Carolina market currently favors the seller. Our local MLS has about a third of the inventory we would average this time of year, often creating multiple offer situations. I worked with one client for about three months and wrote several offers before securing a deal on the right investment property. There are opportunities out there, but they require patience and persistence to find them. Like the others have said - pick a couple of markets that you are interested in, find a good agent, ask a lot of questions, and don't make a purchase unless the numbers make sense. Good luck, and don't hesitate to reach out if you have any questions.

Elijah - 

Glad to hear you considering NC. Although I live in Raleigh, I am in the short-term rental game north of Asheville (actually right on NC/TN border).  As some have mentioned, you just need to do your homework and the deals will come regardless of market.  It's ironic because I'm actually travelling to CA mid-March to visit our son in LA and we're looking at property north of LA (and people tell me to stay away from CA!)

I'm a big believer in having focus and just getting a deal done.

Let me know if I can help with anything here locally and wish me luck in CA!

Joe

@Kate Malchow BP doesn’t allow for outside links that self-promote so I can’t post the link here right now, but if you search for the Improve Channel on Real Estate Investing and my name you should be able to find it. The title of the specific video I referenced is How Do Lease Options Work. But that isn’t the only video I have on lease options. I have about 25 videos currently and 3 or 4 of them are focused on lease options.

Connect with a few wholesalers and find a good realtor. Personally, I've seen some solid multifamily deals in WS via a wholesaler. There are deals to be had in WS/Greensboro that don't ever hit the MLS. And some deals on the MLS. Get on the phone with some folks and keep a it and you'll find something.