All Forum Posts by: Evans Wright

Taxes can go up but that generally happens when a reassessment is scheduled by your county. The frequency at which that is conducted is determined by the county.  The BP calculator lets you factor for expenses increasing year over year by however much % you put in. Typically I factor about increase 2-3% but you also factor in the same in rental increases.

@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!

As a real estate agent, I am able to go pull data from the MLS in specific zip codes for rentals. It is categorized by bedroom count. If you have a relationship with/working with a local agent then you could ask them for that data.

Welcome to the investor life! Charlotte is a great market to get started in. There is a lot of development growth happening and migration to the area. If you start growing your portfolio now, it will be pay dividends years from now along with great experiences. Don't forget to lookup the various REI networking events happening in the Charlotte area and getting out to network with others. If you ever need any help or have questions then please feel free to PM me.

The 2% or 50% is not the only thing that makes a good deal. As the Pirates of the Caribbean movie taught us, they are more like guidelines.  That being said, due to increasing interest rates and home prices finding properties that even remotely come close to those rules in the Charlotte market without doing a huge value add are few and far between when using traditional rental strategy. Try different approaches such as running your numbers as a Short Term Rental or seeing what you could get if you rented out by the room.  It takes a bit of creativity.  If you want to chat more, please feel to PM me.

Well done! What area of Charlotte was the flip in?

You should look into house hacking a multifamily property.  You would only need to come up with 3.5-5% down.

@Daniel Sweet I have been to a couple of these meetups.  They are the second Tuesday of every month and held at Devil's Logic Brewing.  Event starts 6pm and guest speaker starts at 630.

Thanks for the response. I am definitely utilizing Air DNA but wanted to confirm the numbers or reshape expectations with a local expert. I lived near the area years ago and visited last in 2020 so I definitely didn't want to rely on my outdated memories if the opportunity knocked to purchase an STR in Arroyo Grande.

 I am looking for deals in those areas but even heading southeast from NODA since it has become very pricey.  I also really like the potential in South End and surrounding area.  I believe we are going to see a big upside in value for those areas.