North Carolina Rental Property in Charlotte

Real Estate Deal Analysis & Advice
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North Carolina Rental Property in Charlotte

Jay Banerjee
Investor · Newark, CA · Member since 2022 · 7 posts · 3 votes

Investment Info:

Single-family residence other investment.

Rental Home in NC.

What made you interested in investing in this type of deal?

This was a cash flow property.

How did you find this deal and how did you negotiate it?

Brought with traditional loan, turned this into a rental

How did you finance this deal?

Traditional loan - 30 years fixed.

How did you add value to the deal?

Did minor upgrades and rented this out.

What was the outcome?

Rental covers the mortgage and provides positive cashflow.

Lessons learned? Challenges?

Repeat this type of deals.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Wells Fargo was my lender - they were easy to work with.

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Maggie Blackburn
New to Real Estate · Brooklyn, NY · Member since 2021 · 11 posts · 7 votes
4y

Hi Jay! I'm a new investor, originally from CA and now living in NYC and looking to purchase my first SFH in Charlotte. Where was this first property? And what was your CoC and ROI? Neighborhoods I'm looking into are Mathews, Monroe, Mint Hill, Indian Trail, and Belmont. Would love any tips!

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  • Maggie Blackburn
    New to Real Estate · Brooklyn, NY · Member since 2021 · 11 posts · 7 votes
    4y

    Hi Jay! I'm a new investor, originally from CA and now living in NYC and looking to purchase my first SFH in Charlotte. Where was this first property? And what was your CoC and ROI? Neighborhoods I'm looking into are Mathews, Monroe, Mint Hill, Indian Trail, and Belmont. Would love any tips!

    2Reply
  • Dmitriy Fomichenko
    Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
    4y

    Congrats on this investment @Jay Banerjee

    0Reply
  • Sarita ScherpereelBusiness Member
    Real Estate Agent · Chicago, IL · Member since 2018 · 659 posts · 376 votes
    4y

    Congratulations! Sounds like an ideal investment. I hope you can repeat as you hope!

    [email protected]773-456-4644
    Sarita Sells4.933 Reviews
    WebsiteView Page
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  • Yinka Taiwo
    Rental Property Investor · Atlanta, GA · Member since 2022 · 52 posts · 16 votes
    4y

    @Jay Banerjee congrats. Hope I can repeat as you too

    0Reply
  • Jay Banerjee
    OP
    Investor · Newark, CA · Member since 2022 · 7 posts · 3 votes
    4y
    Quote from @Maggie Blackburn:

    Hi Jay! I'm a new investor, originally from CA and now living in NYC and looking to purchase my first SFH in Charlotte. Where was this first property? And what was your CoC and ROI? Neighborhoods I'm looking into are Mathews, Monroe, Mint Hill, Indian Trail, and Belmont. Would love any tips!

     Hi @Maggie Blackburn, those are all great neighborhoods. Greater Charlotte is a banking / finance hub (BofA, Wells, etc.) and strong tech presence (Microsoft, Amazon, etc.). Still with a lot of room to grow.

    Our choice of city to invest was 1st house in Charlotte, and 2nd house in Huntersville. Both of these cities are ranked near top for safety, school, with easy access to local amenities, highway, etc. Median housing price in Charlotte is $301K (compared to a median of $1.48M in the Bay area), making this an attractive choice for investors, and primary residence families.

    What type of investment are you looking at (eg. - buy and hold, vs flip)?

    0Reply
  • Jay Banerjee
    OP
    Investor · Newark, CA · Member since 2022 · 7 posts · 3 votes
    4y
    Quote from @Yinka Taiwo:

    @Jay Banerjee congrats. Hope I can repeat as you too

     @Yinka Taiwo, thank you! Surely you can repeat. I'll be happy to connect and learn about your investment endeavors.

    0Reply
  • Jay Banerjee
    OP
    Investor · Newark, CA · Member since 2022 · 7 posts · 3 votes
    4y
    Quote from @Sarita Scherpereel:

    Congratulations! Sounds like an ideal investment. I hope you can repeat as you hope!

     @Sarita Scherpereel thank you ! I appreciate your encouraging words.

    0Reply
  • Jay Banerjee
    OP
    Investor · Newark, CA · Member since 2022 · 7 posts · 3 votes
    4y
    Quote from @Dmitriy Fomichenko:

    Congrats on this investment @Jay Banerjee

     @Dmitriy Fomichenko, thank you !

    0Reply
  • Maggie Blackburn
    New to Real Estate · Brooklyn, NY · Member since 2021 · 11 posts · 7 votes
    4y

    @Jay BanerjeeI'm looking for a buy and hold since it's my first deal, and I'm out of state. I'm willing to do cosmetic repairs on the property but not a full flip or rehab as I want to take things one step at a time and get one deal under my belt first :) 

    Houses in the $300K+ range seem like they won't break even with rents at $1.5-2K, depending on the neighborhood. I'm wondering if I have to pivot my strategy to find more off-market deals or take on a little more risk by finding houses in need of more repairs. I've been analyzing deals but numbers don't make sense based on rent prices, so I wonder what I'm missing? FWIW my goal isn't massive cash flow as I have a full-time job but do want some CF as a buffer.

    Would love your thoughts! 

    2Reply
  • Jay Banerjee
    OP
    Investor · Newark, CA · Member since 2022 · 7 posts · 3 votes
    4y
    Quote from @Maggie Blackburn:

    @Jay BanerjeeI'm looking for a buy and hold since it's my first deal, and I'm out of state. I'm willing to do cosmetic repairs on the property but not a full flip or rehab as I want to take things one step at a time and get one deal under my belt first :) 

    Houses in the $300K+ range seem like they won't break even with rents at $1.5-2K, depending on the neighborhood. I'm wondering if I have to pivot my strategy to find more off-market deals or take on a little more risk by finding houses in need of more repairs. I've been analyzing deals but numbers don't make sense based on rent prices, so I wonder what I'm missing? FWIW my goal isn't massive cash flow as I have a full-time job but do want some CF as a buffer.

    Would love your thoughts! 

     @Maggie Blackburn, lower cash flow / cap rate, might give you better equity in the long run. If you are looking for a ~$300K deal and finance with a traditional mortgage with 20-25% down - yes you need ~1.5K to break even. You need low HOA, and meet neighborhood rental cap to make this work. There are pockets of neighborhoods that might meet that sweet spot.
    If you have a local agent you know to help you find an off-MLS deal, that is ideal to get a discounted property. For casual browsing, there are rental investment options on roofstock.
    https://www.roofstock.com/inve...

    2Reply
  • Chris Mills
    Investor · Northern VA · Member since 2020 · 124 posts · 87 votes
    4y

    @Maggie Blackburn You don't just want to aim to break even. Always build in a bit of cushion for yourself. Generally speaking, the newer you are to investing, the more cushion you'll want to build in for mistakes and unforeseen circumstances. Based on those general numbers, you may want to pivot to a market with better margins. They're out there.

    1Reply
  • Maggie Blackburn
    New to Real Estate · Brooklyn, NY · Member since 2021 · 11 posts · 7 votes
    4y

    Thank you, @Jay Banerjee! According to my calculations, it's more like I'd need 2K at min for rent to break even on a $300K property w/ a conventional loan of 20-25% down after all the expenses (CapEx, Repairs, PM, Taxes, etc), which could be doable but depends on the neighborhood. Finding off-market deals sounds like the way to go but nervous about the condition and repairs they need.

    @Chris Mills I agree with you. Would love to get a minimum of $100/month in CF as a buffer. Do you think that's a decent buffer for a newbie? I'm okay with lower CF in the short-term b/c I think Charlotte has the potential for appreciation with a lot of new jobs and ppl moving there. I also work a full-time job, so I'm not relying on the CF necessarily to live. I guess I hear that you could find a good deal in any market so trying to find something that works! 

    0Reply
  • Chris Mills
    Investor · Northern VA · Member since 2020 · 124 posts · 87 votes
    4y

    @Maggie Blackburn If that $100 is after a percentage (2-5%) is set aside for maintenance, then yes, I'd say you're good.

    0Reply
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