Hey guys, My name is Ankit. I grew up in Charlotte, NC and currently a working professional. I would like to buy my first rental property (townhome) in Charlotte and/or surrounding area. Should I start with buying a brand new townhome from a developer and rent it out? Any suggestions/advice will be greatly appreciated.
I would like to connect and talk about the Charlotte market. Let me know when you have time for a chat!
You will want to know whether there is an HOA coming with that townhouse or not - and if so, what will be the lease restrictions. It will make a huge difference on your ROI.
Hi Ankit, it depends on what your goals are. Historically, Charlotte has had lower cash flow and higher appreciation. Personally, I like the tertiary markets around Charlotte as it's a good balance of cash flow, appreciation, and it trades at a discount to replacement cost.
Ankit, to Jim's point you are going to have more success from a cash flow perspective assisted by lower HOA's with the outer rim of Charlotte. For example, Indian Trail, Matthew, Belmont, University, and Steele Creek. Also I am a huge proponent of buying an existing townhome where you can make cosmetic updates for forced appreciation to help your cause.
It really depends on your goals. Literally you should have a written targeted property attributes with returns. If not, you will end up with shiney object syndrome and not actually pulling the trigger. Charlotte is a great long term option for buy and hold.
Here's some thoughts...
house hack with a duplex? Might be best option for you.
single family home (new construction or existing with cosmetic needs). Could be hard to find something needing cosmetic only work in today's market. Agree on going outside Mecklenburg to find value.