North Carolina Real Estate Investing
Investor · Bay Area, CA · Member since 2022 · 22 posts · 19 votes
North Carolina Real Estate Investing
Most Popular Reply
Evans WrightPro Member
Rental Property Investor · Charlotte, NC · Member since 2014 · 101 posts · 92 votes@Andres Ruiz it is definitely possible to get cash flowing properties in NC. I am an investor and realtor in the Charlotte area so my whole focus is growing wealth for myself and others. As any savvy real estate investor will attest to, you must be able to pivot your strategies and adapt to the market you are interested in. What I mean by this - In the Charlotte market it is difficult to find properties that will cash flow when taking a traditional Long Term Rental approach outside of you doing a BRRRR. Low inventory, increasing property values and interest rates are the biggest detriment to cash flow for LTR at this moment. Market rents have increased in Charlotte and surrounding areas by as much as 20% year over year but it still isn't high enough to cash flow once you factor property management and other operating expenses.
So what's the solution??
I advise all of my clients that if you want to cash flow you have to get creative i.e. rent by room or furnish a place and try to target traveling professionals. These type of ideas will potentially help increase your GOI until you can refinance to a lower rate or market rents have increased enough. Additionally, when you see the migration trend to the Charlotte area continuing to increase as many people from bigger cities seek to find more affordable housing and better quality of life then you realize where this place is going to go in the near future and I am excited for it.
I am more than happy to have a conversation with you about the area and investing here. I will send you a PM!
32 Replies
- Property Manager · NC · Member since 2022 · 17 posts · 23 votes3y
@Andres Ruiz If you are interested in short term rentals, I'd be happy to connect! My company manages STRs in Charlotte, NC & surrounding areas and partner with many out of state investors.
- 3yDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
We think the Midwest is a GREAT place for OOS investors to consider!
YES, we may be a little biased, but check out our blog here on BP comparing Detroit to other cities and Deep Dives on Metro Detroit cities & neighborhoods:
https://www.biggerpockets.com/...
(BP search feature can be problematic, so we’ve also added links @ our website under View Cities & Neighborhoods We Service)
Your biggest question shouldn't be WHERE to invest, but HOW you will invest!
Many OOS investors set themselves up for failure because they don't truly take the time to understand:
1) The Class of the NEIGHBORHOOD they are buying in - which is relative to the overall area.
2) The Class of the PROPERTY they are buying - which is relative to the overall area.
3) The Class of the TENANT POOL the Neighborhood & Property will attract - which is relative to the overall area.
4) The Class of the CONTRACTORS that will work on their Property, given the Neighborhood location - which is relative to the overall area.
5) The Class of the PROPERTY MANAGEMENT COMPANIES (PMC) that will manage their Property, given the Neighborhood location and the Tenants it will attract - which is relative to the overall area.
6) That a Class X NEIGHBORHOOD will have mostly Class X PROPERTIES, which will only attract Class X TENANTS, CONTRACTORS AND PMCs and deliver Class X RESULTS.
7) That OOS property Class rankings are often different than the Class ranking of the local market they live.
8) Class A is relatively easy to manage, can even be DIY remote managed from another state. Can usually allot 5-10% vacancy factor and same for maintenance.
9) Class B usually also okay, but needs more attention from owner and/or PMC. Vacancy and maintenance factors should be higher than for Class A as homes will be older, have more deferred maintenance and tenants will be harder on them.
10) Class C can be relatively successful with a great PMC (do NOT hire the cheapest!), but very difficult to DIY remote manage. Vacancy and maintenance factors should be higher than for Class A or B. Homes will have even more deferred maintenance and tenants will be even harder on them.
11) Class D pretty much requires an OWNER to be on location and at the property 3-4 times/week. Most quality PMCs will not manage these properties as they understand most owners won’t pay them enough for the time required and even then it’s too difficult successfully manage them.
***Only exception is if an owner has plan & funds to reposition Class D to Class C or higher.Also, SERIOUSLY consider - do you really have the time to be a DIY landlord or should you hire a PMC?
Good luck with whatever you decide😊
Please send us any feedback via email, as we do not use the DM feature here.
Logical Property Management4.9450 Reviews - Granada Hills, CA · Member since 2019 · 97 posts · 313 votes3y
I'm in California and have property in Greensboro. If you PM me in happy to connect you with some of the folks in using to manage remotely. Agree it's a great place to be, was just out there and I'd be happy to live in some of the neighborhoods.
Join the conversationCreate a free account to reply, vote on answers and follow this thread.