All Forum Posts by: Brandon Vanderford

For central North Carolina, I work with an interior designer who purchases primarily from thrift stores and the Restore. She also refinishes a lot of the furniture herself. Unfortunately, this does not help you in Dallas, TX. But if anyone needs someone in the Raleigh/Durham area, I can connect you. 

But that is something to keep in mind. It is relatively easy to refurbish furniture, if you have a little time and know-how. Wayfair looks trendy, but a lot of their stuff will not hold up as long as a Facebook Marketplace or thrift store find.

Ditto to Thomas' comment. Long agreements (one friend in CO sent me an agreement that was 60+ pages, I kid you not) can hide a lot of junk fees. 

But also, if you are talking with a business large enough to have a BDR, ask to speak with whoever would be your property manager. Have a few questions. If they are too busy to schedule a call, then I would consider that a red flag. If they do not have time for you now, then they probably won't later. You need a property manager who is accessible and responsive. You want someone relatively easy to call, email, and work with. 

Bad communication is the downfall of many (otherwise good) property managers. 

As a property manager in the Triangle, I have some clients who only invest in SFHs (they prefer more flexibility and lower/no HOA fees). But I also have clients who only invest in townhomes (they like not having any grounds maintenance and not having to worry about exterior maintenance, including roofs, siding, etc). If you buy a townhome in an association that is operating well (e.g. has plenty of reserves for capital improvements and no deferred maintenance) then as long as you are cash-flow positive after HOA dues are paid (and you budget for potential increases) then townhomes can be an easier property to manage.

To answer your question about finding renters, I would say that 3/2 rentals are the best rentals. There is a niche market for 1/1 rentals, but most people want a little more space (either a kid's room, or a home office, or even just space for furniture that they want to hold onto). 

Best of luck in your investment journey! Happy to discuss further. 

First of all, welcome to BiggerPockets. It looks like you are a relatively new member of this community, but it is a great place to be.

I am a property manager who focuses on the Triangle. That being said, I do manage property in the Triad, and visit Winston Salem a few times per month, on average. Maintenance coordination, rent collection, accounting, showings, application processing, etc. is conducted from my office. And then I will visit regularly for site inspections, move-ins, and meetings. Often, I'll take a walk through Old Salem, and grab a coffee at Anchor Coffee Co.

That being said, if you are open to having a property manager based in the Triangle, then I would be happy to have a conversation. Redwood Properties is a smaller, more boutique firm, and we can offer highly personalized, responsive management services.

If having a property manager with a "home base" in the Triad is a primary concern, then I would recommend giving Acorn & Oak a call. I have no experience with them from the client side, but my interactions with their agents have always been positive.  

I will be listing a property at 807 W. Trinity Ave, Unit 143 in Durham. It is only six minutes from Duke, and is a popular address for Airbnbs; I have managed approximately two dozen units in that community. The owner has informed me that she is willing to accept a price of $220,000, which is significantly below other listings in the community (two other condos, which are the same size and layout, are currently listed for $260,000). Lower offers will not be considered, the owner has stated. The property is fully-furnished, and provides a great opportunity for an investor to get started with an STR or MTR in the Triangle. Happy to answer any questions, and provide further details to anyone interested. Photos of the property can be viewed here:

https://drive.google.com/drive/folders/1nItc2eDUGRgRwonTPgLBtIrlIW48-9jB?usp=drive_link

Update: Effective today, the listing price for 2712 Basswood Ct has been reduced from $309,000 to $295,000. Comment or message me with any questions. This deal won't last. 

The best use of this property by an investor would probably be a room-by-room rental, due to the proximity to Wake Forest University. 

I have a five-bedroom, two-bath home in Winston Salem listed for 309k. It is located only five minutes from Wake Forest University. The fifth bedroom could easily be split into two bedrooms (it already has two closets) making the home six bedrooms.

The property is turnkey, but if a buyer wanted to invest some money into adding a bathroom by converting some of the storage space in the garage area (which has lots of extra space), it could potentially cash flow nicely as a room-by-room rental (being near the university). 

The address of the property is 2712 Basswood Ct, Winston Salem, NC 27106. It is on the MLS. I am the listing agent for this property and am with the firm Redwood Properties, located in Wake Forest, NC.

I am the listing agent for a property whose current owner is open to owner-financing. The address is 807 W. Trinity Ave, Unit 143 in Durham. It is a popular address for Airbnbs; I have managed approximately two dozen units in that community.

The list price for the property is $280,000. The most recently sold unit in this community sold in late September for $290,500. The terms of the owner finance deal would be 20% down (56K) and then an amortization period of 20 years at 0% interest, coming to $933.33 per month. HOA dues are $360/month, but cover internet, cable, water, sewer, and the unit exterior. Property taxes are $131.83/month. Before insurance and electricity, this brings the holding cost to $1425.16/month. With a few upgrades and nice furnishings, these units can usually bring in $1600-$1800/month when leased on Airbnb.

Rates seem to be averaging 8.03% for investment properties. Assuming the same selling price, down payment, and loan term, the monthly mortgage would be around $1,878/month without this owner-financing opportunity. Add taxes and HOA fees, and that number comes to $2,369.83/month, which is clearly not workable.

Effectively, owner-financing would save investors nearly $944.67/month, which makes this deal workable.

For MTRs and STRs, I charge a management fee of 25% on collected rent income. If the buyer had to hire management services, it is likely that this property would not break even. 

However, if a prospective buyer was interested in partnering with me to purchase this property, I would propose the following terms. The buyer covers the down payment and closing costs, we split ownership of the property 60/40 (I would take 40), and we split all maintenance and furnishing costs. Because I have ownership in the property, I will not charge any management fees (regularly 25% for properties of this type; averaging $450/month). Profit is likely to only be in the zone of $100/month initially, but will improve as rents go up in the future (with both city growth and inflation as contributing factors). The condo will be fully paid off in twenty years, and profit will increase significantly.

The cash-on-cash return is admittedly subpar. In my opinion, the ideal partner for this type of investment would be a cash-rich, possibly retired individual who wants a positive cash-flow property that essentially functions as a “cash-storage” asset. The "built-in" PM essentially makes it zero-maintenance.

Photos of the property can be viewed here:

https://drive.google.com/drive/folders/1nItc2eDUGRgRwonTPgLBtIrlIW48-9jB?usp=drive_link

Feel free to message me with any questions. 

Thank you, @Bill B.! Very helpful.

I am a property manager based in North Carolina. I have a client who is potentially interested in selling residential property in St. Thomas (in the U.S. Virgin Islands) and buying commercial property in the United States. However, I know little about tax law in U.S. Territories. Would my client still be able to avoid capital gains taxes by doing a 1031 exchange? Thanks for any feedback!