All Forum Posts by: Jim Kittridge

@Praveen Balaji Glad you caught that fee. The highest processing fee I've seen is ~$400.  

IMO, you should get an agent that is on your side. First of all, the processing fee is a cost of them doing business. If they want to pay their broker less, they can find another BIC. 

If you'd like, I can connect you with my wife who is an agent in Charlotte. She doesn't charge processing fees or fees for photography.

Welcome to BP Ivan. As Don mentioned, the Metrolina REIA is the go-to for meetups around Charlotte. Not a whole lot going on right now, but once things open up again they have more meetings than you can imagine going to.

I do flips and buy and holds and would be happy to connect.

I bought it well below market value because the seller needed to close within a week. Sourced it from digital marketing (he came to our site via SEO).

I paid $45k for it and sold it for $225k within 4 months purchase to close. 

Yo Grayson I didn't even realize you were on BP or investing. Let's link up sometime.

@Katie Miller Here is a link to before/afters for our most recent flip. Have 2 more underway now!

I'm in Charlotte NC and we just finished one that fits the bill perfectly. House was a nightmare and turned out gorgeous. Have professional photos to boot.

$43k purchase
$70k reno
$225k sale price
$89k profit

DM me your contact info and I can share more info.

I know many people are concerned about the market and I wanted to share some listing stats from a flip we just listed and went under contract with a buyer.

Quick background: 

Since we got a great deal on the buy, we decided to push the envelope on this one and did higher end finishes to try to sell the house for $200k+ in a $160k neighborhood. 

Stats

• We listed it above what we thought we could get and got it.
• 7 DOM
• 1,763 views on Zillow
• 159 saves on Zillow
• 19 showings
• 4 offers to purchase
• All offers were pre-qualified
• Under contract at our asking price with a 3 week close
• Financing cost: $4k
• Our Net Profit: $89k

I still think our underlying fundamentals are strong in the Charlotte MSA. I'm still seeing a low supply and high demand for affordable housing ($150k-350k depending on the area).

What are you seeing in the market?

Let me know if you guys sell any other rentals in Gaston or Cabarrus counties @Kevin Stringari

I'd pass on the deal based on what you've shared @Daniel Essex 

Cash flow & CoC are low and you aren't accounting for property management. After everything is added up, PM comes out to 11-13% (50% of first month, renewals, etc. etc.). Whether you're self-managing or not, you should pay yourself for your time and always account for it in case circumstances change and you need/want to get professional management.

IMO, you could lend or invest that money and make a much better return with less work. 

Keep looking

View report

I'm closing on two duplexes in Charlotte MSA in a great area (population & employment growth, close to downtown, etc.). Purchase price was $70k for each duplex with $3000 in renovations rolled into the loan. Similar properties are selling for ~$125,000 as-is.

My team sourced this deal off-market hence the $50k+ discount for each duplex. It's 100% occupied with tenants being there for 13+ years at severely under market rents. Each unit should rent for $950 with LVP, paint, and updated appliances.

We will gradually increase the rent to fair market rates and if a unit vacates, put in $2500 in upgrades and increase it immediately to $900-$950.

We're buying them as 50/50 partners with him bringing the cash to close and me bringing the deal, lender, and managing the renovations and PM. It's important to me to build long term relationships with partners and make it a win-win for everyone.

Do you guys think I left too much money in the deal? If I were to do it again, a better path would be to sell it to our joint LLC for ~$100k/duplex. Still a great deal and I'm bringing $50K in equity to the table vs the ~$35k down payment from the other partner and I'm managing the whole deal.


Any advice on how to better structure this?