All Forum Posts by: Curtis Waters

You can get much of this info at local investor groups.  In the Hobby Millionaire Charlotte meetings (find on meetup.com), we have a section on each meeting for needs & wants.  You can network with other investors for this info. Meetings multiple days each week.

Other than HD & Lowes, you can also use Builders Supply in Pineville and Surplus Warehouse on Independence Blvd.  Surplus Warehouse even has prefabbed granite!!

The NC Utilities Commission has rules for this.  In order to bill tenants for usage you must register with the utilities commission. (Found this on a Google search).

Probably better to add a 'utility package' to the rent.

There are companies in Charlotte that can setup submetering if you register with the utilities commission.

I know a fellow investor who has vacation rentals in Gatlinburg TN. The area has year round visitors. His rentals are 5+ bedrooms with mostly king master suites. His CAP rate exceeds 30%. Many rentals were previously bank REOs or foreclosures from owners who didn't understand the financial & operational aspects.

This would be hard to replicate elsewhere, as Gatlinburg is focused on year round tourism which is great for low vacancy.  All reservations are done thru VRBO with local maintenance & housekeeping.  Using a property manager would take a big hit on returns.  They also spend 3-5 days/mo in Gatlinburg (they live near Charlotte).

5-8℅ in Charlotte should be okay.. If your rent is under $1300/mo and you advertise in Craigslist, you should be able to rent quickly.

Be careful with property managers - some will rent at below market rents (to ensure lots of applications) resulting in a big hit to your potential revenue.  A $200 rent discrepancy from the market will cost a property manager $16-20/mo, but your impact is $180-184/mo!

Make sure tenants are screened for credit (looking for many charge-offs), eviction history, and criminal history.

Meeting held each meeting - IHOP in South Charlotte near I-485 & South Tryon (Steele Creek/Arrowood area).

Meeting for startup or seasoned investors. Hear about fellow investor deals, get questions answered, and learn from the Hobby Millionaire team. No cost to attend - even dinner at IHOP is optional!

Call me on Monday of that week to discuss timing.  Contact info in my signature line.

As for meetups - Hobby Millionaire meets each week on Monday, Tuesday, and Wednesday.  I facilitate the Monday evening and Tuesday lunch meetings.

Sure. Let's meet for breakfast!

This will depend on how you want the deed titled. If you don't mind having the deed in your personal name, you can get financing based on your personal credit & debt to income ratio with no more than 5% down. If you plan on taking ownership through an LLC, you will use a commercial lender. Usually 20% down with a requirement that rents are 30% above your monthly payment (if rent is $1300/month then payment can't exceed $1000/month). Your interest rate on a commercial loan will be about 1-2 points higher than a loan taken in your name.

Keep in mind that you might have significant personal debt that would keep you from buying more property in your personal name. Taking ownership in your LLC offers some asset protection & allows you to qualify for a commercial loan/mortgage based on rent coverage. Personal loans are subject to Fannie Mae guidelines which limit your debt to income ratios and the number of loans in your name.

I can recommend good lenders for either scenario.

Heather,

Search meetup dot com for Hobby Millionaire Charlotte.  . We meet multiple times each week and welcome startup investors!  No cost to attend.

I am not going to recommend anyone - as the firm I am with provides property management as well.

Ask and determine with any property manager:

• Do they market properties and set rents at market rates?  Charlotte can withstand a minimum of $650-700 for 1 bedroom, $750-800 for 2 bedroom, and $850-900 for 3 bedroom in B-/C+ neighborhoods.  For A neighborhoods - $1500/mo for a 1 bedroom.  Every $ your property manager doesn't get reduces your return and the property value to the next investor.
• Do they have a team to service your tenants when problems arise?  Do they treat your properties like they would their own?
• Do they look out for preventative maintenance issues?

Many investors look only at the property management fee.  But if your property manager charges 8% fee on collected rent, but their rents are $100 under market - you would be better off paying a higher percentage for a property manager who gets market rent each year, controls your costs, and manages your maintenance issues wisely.