All Forum Posts by: Jim Kittridge

Congrats on the BRRRR John. If the numbers are strong, the short term hard money lender should finance a portion of the rehab for you as well. If they do that, you can roll it into a conventional 30 year loan or a commercial loan after it has seasoned.

A 30 year fixed at 6.25% is decent, but most have prepayment penalties if you were to refi or sell within the first 2-5 years.

No problem. It will help to have an agent to setup a search for you. My portfolio is spread across the counties that surround Mecklenburg like Gaston, Iredell, Cabarrus and Union county. 

The Charlotte market has been growing at a fast pace for the last decade. You're correct in looking at the secondary markets for better cashflow. Find an agent you like working with and they can setup instant email alerts for new 2-4 units in your target zip codes.

When you find a deal, you have to act fast. Cash works best. If not, get pre-approved and consider doing a more aggressive EMD.

I'd use pictures from the listing and put the property into 4 price per square foot buckets. Based on the condition you see, use that price per sq ft bucket in excel and multiply by the sq ft to get an estimated rehab cost.

Something simple like $10, $20, $30, & $50 /sqft will get you close enough.

If the numbers check out, schedule your team to do a walk through and report back what needs to be done and the cost. Use that as leverage for negotiations.

If you're new or doing it remote, I'd recommend getting a 3rd party home inspector for your piece of mind.

Carolina Farm is the only one I know of that will do it without a very strong borrower or with plenty of land comps that support a low LTV.

I have some of my portfolio in Gastonia. In my opinion, it's an attractive market as an investor because of the low cost basis, strong cash flow, and the likelihood of appreciation of $50k houses. 

As a point of reference, I'm buying two duplexes in Gastonia for $90k & $135k. Both have tenants in place at close to market rents and are in prime locations. 

Deals can be found with a good realtor but you have to move quick. We bought 6 units next the stadium last year for ~$260k on the MLS

I'll send over a HML that I used in the past. Good guys and based in NC.

Inventory has continued to be in very low supply, especially affordable homes. This is caused by a few trends but the most pronounced (in my opinion) are the facts that ~60 people move to Charlotte a day and almost all new inventory that is being built starts at $450k.

If you own houses on the affordable side, supply and demand are going to continue to push up the prices up.

Personally, I don't see us being able to build <$300k houses within the next 5-10 years and I also don't see the influx of people moving slowing down.

Networth & New Western pump out a lot of deals albeit they are more borderline.

You can do well with them but it all comes down to how much you're getting the dirt for. Most of the inventory being marketed has issues or it would have been scooped up. Also, now may be a riskier time if this is your first build. It's easier to start when things are trending up.

If you're starting out and still want to jump in, I'd recommend partnering with an experienced builder (minimum of 15+ homes a year) and doing a deal together where both of you have significant skin in the game. That way they have a vested interest in the success of the project.