All Forum Posts by: James Hutson

Thank you all for your analysis and advice on this matter.  

Will be posting some questions/thoughts in a little bit.  

Good Evening BP'ers

Interesting situation here:

Planning to house-hack a triplex or quadraplex here in Raleigh, NC

Even once I can secure the finances, hunting down the right property has proven to be EXTREMELY difficult. Raleigh is a great market--constantly ranked in the top 2 or 3 cities in the country for jobs and just in general. Perhaps it's just my inexperience in deal analysis keeping me blinded to opportunities.

The problem is, not only can I not figure out how to calculate/where to find half the data needed for the Rental Calculator, but even if I get the rough numbers, I cannot find any properties that are profitable. The ones I find barely cover the mortgage, let alone the mortgage and the 50% expense rule of thumb. So the bottom line is I'd be lucky to find one where I live for free. Seems like turning a profit at all, let alone the minimum I want of $200/m is an impossibility.

I know I may be foolish searching the MLS. I should probably go to our TREIA meetings or the other deal-making sessions around here. I think the investors find all the good ones before they ever hit the market. Perhaps I should start contacting owners of off-the-market or withdrawn tris and quads and if the numbers work, make an offer?

For instance, bellow is the basic data on a triplex I ran through the BP Rental Calculator.

• Built in 1996
• Two story
• Listed: $225,000
• Sp: $215,000 (hypothetical of course...it was on the market for ~100 days and was withdrawn a few weeks back).
• Loan: $215,000
• Down Payment: Assuming FHA 3% = $6,450
• Interest Rate: Not to exceed 4% (here I'm seeing FHA's go for 3.8ish)
• Annual Taxes: (2015) $2,339
• Annual Insurance: Not sure what insurance is on a triplex and I know it depends on the area. Thoughts?
• Tax Rate: 0.908
• Unit 1, 2 and 3 are each 2 bed, 1.5 bath.
• Rent: Unit 1 $725/m. Unit 2 $700/m. Unit 3 $695/m If updates/repairs are made, I imagine I could boost these numbers. Not sure how much since I don't know the ARV or what other rents in the area go for since most are 1 story duplexes or quads and most aren't updated/improved.

What are your thoughts on it and what else am I missing. Again, I wasn't able to fill in all the fields in the calculator since I was unsure about how to calculate/estimate/find some of the data (e.g. after repair value, closing costs, etc...)

Perhaps I'm running the numbers wrong and I need to find out how to run them correctly so I can start building experience with deal analysis. This will be a must when it's time to apply these calculations on my future triplex.

Thanks a million!

Good Afternoon BP Family!

I'd like to introduce you to an amazing raw land opportunity in Chatham County North Carolina (NC). I'm posting this for a colleague of mine who is the listing agent and figured I'd help him get more exposure on this.

The land is +- 119 acres un-zoned. The address is 0 Grade Bryant Road in Moncure.  

Please let me know if you are interested and I will pass it along to the agent!

Good Afternoon BP Family! 

I'd like to introduce you to an amazing raw land opportunity in Chatham County North Carolina (NC). I'm posting this for a colleague of mine who is the listing agent and figured I'd help him get more exposure on this. 

The land is +- 119 acres un-zoned.  The address is 0 Grade Bryant Road in Moncure.  

Could be a sign that since a few of the rents are slightly higher than the others, that the current owner was likely soon going to spike the (now) lower rents to bring them up to match the higher ones. Also, it very well might be an attempt to force appreciation by increasing rent.  I know many mutli owners play very close to the chest with their expenses and don't want to share them, but as a potential buyer maybe you could convince them to show you a year or two worth of monthly expenses...see if they have been decreasing (owner found a way to decrease them).

Remember, the (only?) way to increase the value here, is to increase the rent or decrease the expenses.

Glad to hear my home-away-from-home is more secure now!  Can't thank you all enough for all the hard work and creativity you've put into this website/community :)  

Happy Investing!

@Michael Bangsal  Welcome to BP!  I've really enjoyed learning from the podcasts, articles, blog and especially the forums.  It's nice having people with different perspectives and backgrounds offering advice.  Wish you the best of luck as you learn, then goal set and hopefully not too far off, implement! 

James 

Hey BP family!

Thought I'd provide some updated info on the appreciation rates around Wake county.  Bellow are the top 5 appreciating subdivisions (neighborhoods) per area.

Cary/Apex/Morrisville                    Avg PPY                         Avg Price  

1.  Knollwood estates                     6.2%                               $169,050

2.  Macgreggor Downs                   4.18%                             $444,571

3.  Greenwood Forest                     4.13%                             $208,600

4.  Scottish Hills                              2.81%                             $202.222

5.  Northwoods                               2.64%                             $212,250

Inside the Beltiline

1.  Mordecai Place                        6.5%                                $313,958

2.  Hayes Barton                           5.45%                              $624,091

3. Bloomsbury                              5.43%                               $515,893

4. North Hills                                 5.42%                              $340,650

5. Cameron Park                          5.36%                               $519,000

East Raleigh/Wake

1.  Brentwood                              2.35%                               $145,587           

2.  Planters Walk                         1.00%                                $175,179

3. Edgewater                               0.43%                               $164,786

4.  Southall                                  0.4%                                 $169,800

5. Emerald Pointe                       0.27%                                $158,500

North Raleigh/Wake

1. Quail Hollow                            6.47%                               $263,400

2.  Springdale Estates                 5.12%                               $327,844

3.  Northclift                                4.25%                                $172,550

4.  Cypress of Raleigh                 4.08%                               $611,417

5.  Oak Park                                 4.00%                               $273,318

SW Cary/Fuquay/HSprings

1.  Remington                               2.58%                              $139,208

2.  Ballenridge                               1.7%                                $186,700

3.  Lochmere                                 1.46%                              $391,868

4.  Creekside at Tryon Village       1.45%                              $237,091

5.  Valleyfield                                 1.07%                              $187,429

1. Many of these neighborhoods are great places to own SFR's or to live yourself. Hope this helps and happy investing, everyone!

Gotcha!  Great stuff, I have been looking over their site and will keep it in mind.