All Forum Posts by: Evans Wright

Heyyyy, 

I am seeking some help from any Short Term Rental property managers that deal in the San Luis Obispo / Arroyo Grande area.  I would like to get an idea of what I can get for a property out there.  Please comment or message me so I can provide details.  Thanks!

I am looking at and analyzing a lot of properties in the 28205 zip of Charlotte especially for STR potential. Also 28203.

Quote from @Wendell Butler:

Hello!

I am planning on possibly moving to the Charlotte, NC area around the end of the year and will continue investing in real estate. I'm looking for a multifamily to purchase and house hack down there as I continue investing in the area doing multifamily BRRRR's, flips, commercial properties etc.

It seems like there are very few multi-families around that area that come up on the market, well less than where I live currently. Any realtors in that area that may have some knowledge or know of some off market inventory?

Also I'm looking to either BRRRR multifamily/single families for LTR and also focus on purchasing large residential commercial buildings.

Commercial larger properties are my main focus, but it seems multifamily/single family BRRRR's/flips might be a good play in the area as well.

Looking to connect with anyone in that location as well!

 Wendell, let me be the first to welcome you to Charlotte! You will love it here.  My fiancé and I came on a vacation one week and were under contract for a home by the following week.  So I have no doubt that you will enjoy it personally and from an investing perspective.

In response to your post, you are spot on in the fact that there is a severely limited inventory for multifamily. I am an investor who is also a real estate agent and my whole focus is to help other new investors get started on the path to building wealth through real estate investing. I am analyzing these multifamily deals here for my clients, compiling data leveraging the MLS and other sites and providing that information to my investor clients so they have all the info readily available to make a decision on how they want to proceed. Most of the deals I have analyzed especially in the multifamily realm are at negative cashflow due to high price and interest rates. That being said, I continue to emphasize that you have see where Charlotte and the surrounding area will be in the next few years with the mass influx of people moving from cities like NYC to get more affordable housing and better QoL especially as we are being heavily affected by macro factors such as inflation. I also think that if you want something to immediately cash flow then you have to take a more creative approach like looking at the potential to rent out each room or implementing a short term rental or mid term rental strategy. The medical field is huge down here so being able to provide a great property for traveling nurses and other professions could be greatly increase your GOI vs traditional LTR. Every deal I analyze I provide the numbers if the investor wanted to do a LTR, MTR and STR just so they understand their options.

For BRRR type stuff, I get fed off market deals from New Western and Networth Realty. I would also check out the Charlotte NC, Real Estate Investors page on Facebook if you haven't already.

If you are interested and wanting to talk more, I love talking about real estate so shoot me a PM or give me a call/text at 785-375-8330.  

Charlotte, NC Real Estate Investors. Post on there.

Quote from @Erik Browning:

@Evans Wright Use this calculator to justify the down payment for your borrowers: https://whatsmypayment.com/va-...

In your scenario, the lender telling you that the full $31,483 is needed as a down payment is correct. This is not any different underwriting, it's just that the first underwriter doesn't know what he's talking about. This is straight from the guidelines regarding split entitlement. 

Split entitlement is when a VA Buyer uses up "part" of their VA entitlement on their initial home purchase. Once they depart from that residence, they can choose to keep that property as a rental (or in this case until the home sells) and "use up the rest" of their entitlement to purchase another home.

If the new home purchase is > the remaining amount of entitlement left, the VA buyer will have to come if with 25% of the difference from the "maximum" to the purchase price.

For your exact scenario, look at this screenshot to help illustrate the concept of split entitlement and down payment on the difference:

Erik!  Thank you for this breakdown and the calculator. I passed the info along and we are all very thankful for your help!

Quote from @Erik Browning:

What's the zip of the subject property and I'll give you an answer

 28173

I am asking for help to try and understand the numbers for my client but here is the scenario:

Purchase Price = $528999

Purchase Price x .25 = $132249

Conforming county limit $647200 x .25 = $161800

VA amount already used = $61034

Amount left to use  = $100766

Purchase price x.25 - Amount left to use. = $31483

So at this point one lender is saying that the client will only need to pay 25% of the $31483 as a down payment and another lender is saying they will need to pay all $31483 as a down payment should the client not sell their current home before closing which was purchased using VA loan. So my question is who is right or are they both right but use different underwriting for VA? If anyone could share the formula they use or any experience on this matter then it would much appreciated. Thanks!

Quote from @Tim G.:

I am seeing inventory climb, CLT seems to be a bit behind schedule compared to PHX, Dallas, Socal, Florida, Seattle areas on how fast its growing. Big areas of concern for me in CLT are Lake Norman area and the outskirts. CLT has a large mortgage lending / banking industry that is likely to be hurt in this downturn. 

I personally would not buy a flip or any investment property in any market in the US without planning for a 10-15% price reduction when it comes time to sell it based on current comps. 

Tim,

Could you elaborate further on your comment of why you think the banking industry is going to hurt in Charlotte?  It is such a huge sector here and in my opinion continuing to grow but I would definitely want to understand it from your perspective.  Thanks!

Great Falls, MT

Omaha, NE

I own properties there so I figured I would throw it out there.

Start focusing on lead generation! Telling people on social media that you are working on becoming an agent and how you want to provide value to them.  Start planting some good seeds now.