All Forum Posts by: Jim Manson

A bit late to the game here but my two cents worth: I have a HELOC with my local credit union with a 4.25% interest rate and zero balance. I hold it as a last resort for very short-term loans to myself for purchases or reno costs. "Short-term" because the payment terms are $14/thousand borrowed which is roughly equivalent to a 15 year term. Adds up very quickly. Strongly suggest verifying payment terms when you are looking into the loan.

Hi Vishakha!!! Jim, also here in Durham. I give Acorn & Oak Property Management in Durham 10% of my gross every month, and it's worth every penny. 

There is definitely opportunity. I own rental property in Durham but not short-term. Potential customers would include visiting faculty, parents of students, tech folk, miscellaneous business folk, and patients coming here for specialized care. I posted about this in another string, but my take on short-term is that it isn't a tenant landlord relationship. It's a hospitality relationship where you could be front desk, concierge, housekeeping, and maintenance all in the same day. Personally, it seems like a good gig. There are some other threads about cost percentages and income you may want to look up. It does seem like a regular rental in that, if you buy correctly and manage correctly, you can profit very well.

I live 150 ft from Duke East Campus and have a garage apartment behind my house as one of my rentals. (I wish I had 10.) I have considered converting the apartment into a short-term rental. There is definitely a market. Almost zero from tourism but considerable opportunity working with visiting professors, alumni, parents, and tech contractors. The important thing to remember that I have not heard discussed often is that short-term renting is a hospitality model. It's a totally different level of customer service than most of us in the long-term tenant/landlord world are used to dealing with. If you have restaurant, hotel, or retail experience, you will be in better shape. I know if I step into this world I may need to be concierge, front desk, housekeeping, and maintenance all in one day. Having a lot of restaurant experience, that model (and the potentially higher margins) appeals to me.

@Ham Merritt and @Chris Martin, thanks so much for the replies. I will connect with Envoy in Raleigh.

Hi All,

Looking to do a cash out refi on a SFR that I own outright here in Durham NC. I spoke with Wells Fargo, but it seems they 1) will only go up to 75% of appraised value and 2) will only do 75% of final price if the property has been owned for less than 1 year (I have owned it for 8 months). Any recommendations for a conventional lender in the Durham, Raleigh, Chapel Hill area or possibly a lender in another part of the country that works well remotely? I can live with 75% of the final price but don't really want to wait another 4 months.

Thanks!!!!

Great explanation!!! I appreciate you taking the time to explain it. I should be able to pull about 88K out of it for my next project. Onward and upward!!!

8/4/16

Recognizing that this might fall into the category of dumb question, but I have always either financed with a bank from the getgo or bought and held with cash. This SFH I bought with cash for 90K, current value is about 110K. I want to BRRR this one so, when I go to take out a mortgage this week, how does the ~20% down work? Will I need to bring cash to closing or is it no cash and they will only finance 88K?

As an investor and long-time resident of Durham, it sickens me to see the bandit signs up. Whether they are effective or not, they wind up littering our streets and right of ways and often make their way into our streams as trash.They ultimately lower our property values by contributing to poor aesthetics in an area. Guaranteed, if I see them, I either take them down or call the City. Hoping you guys will use better ways to find properties.