All Forum Posts by: Greg Fitch

Investors should be leary of one employer towns like Fayetteville. If the military decides to relocate all or some of its troops the apartment market will really suffer. But the specific question is about a flip - and again I don’t think single family house prices appreciate. So Greensboro gets my vote on both counts.

My sense is that cap rates in Durham and Chapel Hill are around 4 to 5 percent. Raleigh is a bit higher, and the Triad is around 10-12 percent. 

Hi Hyejin -

Sorry to hear about your predicament. Did the disposition of unpaid rent and the security deposit come up with the seller during purchase negotiations? 

If the answer is 'no', and if the security deposit is not much money, say under $1,000, that amount can be eaten up quickly by attorney's fees, so I would try to figure this one out on your own. 

First, have you re-read your offer contract to see if this matter was addressed (even boiler plate language might be relevant)?  And if the security deposit was transferred to you at closing, then would it not be your property? What were the circumstances behind that transaction?

Second, did you work with a seller's agent? If you did, ask him or her for help. An agent can be an invaluable resource - and for free.

Your biggest opportunity, financially speaking, is getting the apartment vacant and renovated, so you can re-rent it and start receiving cash flow. So why not channel your attention to working with the courts to get the tenant out. With regular rent payments coming in, you'll soon put this hiccup in the rear view mirror.

Greg

Chris and Randy, thanks for the cabinet tips - great ideas.

Chris that's an interesting source. Do you purchase ready to assemble, or pre-assembled cabinets?

Hi Andrew -

We've had groundhogs in our neighborhood in downtown Chapel Hill for a while. A few years ago one moved under our deck and we had to take ahem immediate action. They can do a lot of damage to residential footings and foundations - one neighbor's deck collapsed from the tunneling underneath. When they have broods it even harder to eliminate them so it would be valuable to jump on this. I would suggest calling a critter control company to remove the pests, as they'll know the local ordinances and you just have to pay the bill - no mess, no bites etc.

Hi Adam -

I don't have any leads for you but did read on your LinkedIn profile we both went to DA so small world there. Welcome back to the Triangle! 

Thomas, welcome to Bigger Pockets! Greensboro has some great real estate investing opportunities so if you decide to remain there after graduation I encourage you to network, network, network to be well positioned for deals later as they surface. The local real estate groups are a good start - also are there clubs on campus that can sharpen your skills and introduce you to local real estate movers and shakers? Or offer to intern for the larger landlords or investment firms in town. College is perhaps the last time asking questions is welcomed and folks want to help in your development so I encourage you to take advantage of of this time. It goes by fast.

Hi David -

I'm a real estate investor based in Chapel Hill, NC. If I can answer any questions you have about this area I would be happy to.  Annapolis is such a pretty town.

Greg

Chris, I'll add my thoughts to the others who have responded to this thread. First, it's hard for me to see how you can make a go of anew real estate investing career without being in North Carolina.  You'll need to identify the market, segment and product type you want to compete in, get to know the agents, the comps, inventory, etc. before you jump in making offers, offers you may regret later. That requires a physical presence.

Second, if you are new to this market, you will benefit from the guidance and advice of an experienced real estate agent. You can potentially get 10, 20 or 30 years of smart, objective advice to guide you to that offer. As they say, you make your money with the purchase, not the sale; good information is well worth the commission you'd give up. 

So I'd stay informed but relax and enjoy the awesome San Diego weather until you move to NC.