All Forum Posts by: Maranda Tucker

Hi Bharath!

Your situation presents a classic trade-off between long-term appreciation potential and short-term debt reduction. Here are my thoughts:

First, your 2.6% mortgage on the rental is an absolute goldmine—it’s a rate we’re unlikely to see again in our investing lifetimes. Selling means giving up an incredibly cheap cost of capital, especially in an appreciating area like 28277.

I direct my investors to 28277 all the time for appreciation-focused plays. Ballantyne and South Charlotte are experiencing continuous growth, and the demand fundamentals remain strong. If appreciation is part of your long-term wealth-building strategy, holding onto this asset could be wise.

That said, if your main goal is to aggressively pay down your primary residence mortgage, selling could make sense. Paying off a chunk of that 7.3% mortgage is essentially a guaranteed return at that interest rate. However, this also means walking away from future appreciation gains and potential rent increases.

As for a HELOC on an investment property, yes, it's possible, but terms are typically less favorable than primary residence HELOCs. Expect lower LTV limits (often 70-75%) and higher interest rates. But if you can secure one with solid terms, it could be a great way to access capital while keeping the rental.

If you believe in 28277's continued appreciation (and I do), I'd lean towards holding the rental, increasing rents through strategic upgrades, and leveraging equity via a HELOC or cash-out refinance if the terms make sense. This allows you to benefit from appreciation, continue building equity, and still access capital for new deals without sacrificing an ultra-low fixed-rate loan.

Would love to hear what direction you’re leaning—lots of ways to approach this depending on your risk tolerance and goals!

Quote from @Sean Regan:

Appreciate the tips. Very helpful! I need to install LVP throughout, replace bathroom vanity, toilet, and fixtures, install a new dishwasher, and finish a 300 sqft ADU with drywall, paint, and LVP that can be used as an office, rec room, etc. I figured I at least need to get these completed before photos and listing. I also plan to touch-up paint, fix kitchen cabinet drawers, replace outlets and a few door handles. It seems like I would be cutting it close to try to finish, list, and lease it starting March 1?

 Sounds like you still have a ways to go! I think a March 1 lease might be a little out of reach.. Unless you can knock all of those items out in the next week, price competitively in the market and are in a hot area. 

If you need rental comps for your area, let me know! I can shoot them your way. Also happy to share market updates. :) 

Good luck!!

Quote from @Nathan Gesner:

Quote from @Maranda Tucker:

Most county records aren't public. Even if they have a public record in your county, they may have issues in another county that are not disclosed. Fortunately, people with criminal records typically have other issues like bad credit or landlord references.

True. The main lesson for us was that there is still a level of due diligence that our team must perform regardless of screening software. We were just really lucky to not have any major issues pop up until last year. 

Quote from @Jill F.:

@Nathan Gesner I know! This morning I evicted an inherited tenant in a building that I"ve now owned for just over a year.  I did public record searches on all the tenants while I was in the process of buying the building just so I'd know who I was going to be dealing with. The guy I bought the building from rented to said tenant WHILE HE WAS IN THE PROCESS of being evicted from another property.The tenant was a borderline hoarder that quit paying rent in December and then left the place a mess. The landlord across the street rented to him AFTER I was granted a writ by the court and just two days before his move out date with my eviction easily viewable in court records???!!!! It's baffling. It's probably not going to end well for that landlord.

We actually had this happen to us twice last year (at the same time, in 2 different units)! We relied too heavily on AppFolio's screening process, which doesn't update with our county's records fast enough. 

Learned that lesson the hard way. Never again.

Quote from @Vince Scipione:

Exposure is great, but quality of tenants far outweighs quantity. Realtors typically pre-screen rental clients to make sure their time is not going to be wasted. Usually prospective tenants that agents bring to showings will be more qualified to rent in my experience. I think eventually a VR set up will be common online or at RE offices. Where buyers/tenants can view dozens of properties in a day to screen out less desirables then schedule with a real agent to see the home in person! Would be an interesting change!

This was the assumption we operated under until December 2023. In just the past week, I've had to deny six applications from agent-led showings because the agents didn’t conduct proper due diligence upfront. It's hard to say how many properties those agents showed to those prospective tenants without any return—what a waste of time!

Currently, agents aren’t significantly rewarded for showing rental properties to potential tenants. The highest fee I've seen for assisting with tenant placement is 10% of one month's rent. With average rents in Charlotte hovering around $1,800 to $2,000, that means an average agent fee of just $190—if the management company even pays the showing fee.

I understand that this may vary by market, but in mine, I don’t see agents being incentivized to work with renters. Nonetheless, I am committed to ensuring that agents are compensated for their efforts in showing and placing tenants in our properties.

I wanted to spark a conversation about a topic that’s been gaining traction in our industry: the balance between realtor-led showings and self-guided tours for properties.

As landlords, we all want to maximize engagement and find the right tenants as quickly as possible. In my experience, using a hybrid model—combining traditional realtor showings with self-guided tours—has proven to be an effective strategy. It allows potential tenants the flexibility to explore a property at their own pace while still having the expertise and guidance of a realtor at their disposal.

That said, I’m curious about your thoughts on this approach. How comfortable are you with the idea of trusting agents to lead showings versus allowing prospective tenants to tour properties on their own? 

As landlords or property managers, what has been your experience with these two methods? Are there any pros or cons we may not have considered? 

I’d love to hear your experiences, opinions, and any tips you might have for successfully implementing these strategies.

Hey Micah!  

Lots of great points made in this thread. I am Charlotte based. If you want real rental history for your specific neighborhood and data points on appreciation of your area specifically, let me know. I'd be happy to provide so that you can make a more informed decision.

We use Kwickset Smart Locks so that we can quickly re-key the property whenever needed and have access to the property at all times.

We have a lockbox attached to the house with a back up key in it and we charge per door to change locks.

Been there. Greg is right, adjust purchase price. Then, do the best you can as tenants move out. I have found that *most* tenants will be honest about what they did and did not do. Charge them for when you believe would be a tenant charge and re-consider if/when they appeal. 

It is a frustrating process.

Charlotte, NC, and its surrounding areas continue to offer exciting opportunities for real estate investors. Whether you’re targeting strong cash flow or long-term appreciation, understanding the dynamics of each neighborhood is key. Here’s a breakdown of some top areas:

Cash Flow-Friendly Neighborhoods

• West Charlotte: Known for affordability and strong rental yields, West Charlotte offers opportunities in single-family and small multi-family properties.
• Gastonia: Just outside of Charlotte, Gastonia is a great spot for investors seeking cash flow. Prices remain relatively low, but appreciation may be slower.
• Monroe: A mix of cash flow and appreciation potential, Monroe has become a popular choice for investors, especially in areas where new developments are popping up.

Appreciation-Focused Neighborhoods

• Ballantyne: A well-established area with high demand, Ballantyne offers excellent long-term appreciation potential, though cash flow opportunities may be limited.
• South End: A booming urban hub with a vibrant retail and restaurant scene. South End is great for appreciation-driven investors who want to be close to the action.
• NoDa (North Davidson): The artsy vibe and walkability have made NoDa a magnet for young professionals, driving appreciation in this district.
• Kannapolis: Known for ongoing revitalization projects, Kannapolis is positioned for appreciation. Investors should keep an eye on its growing infrastructure and amenities.
• Huntersville: A family-friendly suburb with excellent schools and amenities, Huntersville is a solid choice for long-term appreciation.
• Davidson: A charming college town, Davidson offers steady appreciation and attracts higher-income tenants.
• Belmont: This small town near Charlotte offers more appreciation potential than cash flow, driven by its desirability and quaint atmosphere.

Neighborhoods Offering Both Cash Flow & Appreciation

• Concord: A tricky yet rewarding market, Concord can provide both cash flow and appreciation. However, be cautious—newer “B” properties are sometimes built in “C” neighborhoods, so careful due diligence is required.
• Monroe: As mentioned earlier, Monroe strikes a balance, making it a versatile option for investors.

Trends to Watch

• Transit-Oriented Development: Areas near light rail expansions are seeing significant value increases.
• Suburban Growth: The suburbs around Charlotte, including areas like Concord, Huntersville, and Monroe, are experiencing steady growth as people seek more affordable housing outside the city center.

When investing in Charlotte, aligning your neighborhood choice with your goals is essential. Investors seeking cash flow should focus on affordable emerging areas, while those prioritizing appreciation may look to neighborhoods with strong demand and development.

I’d love to hear your thoughts! Have you invested in any of these areas, or do you have others to recommend?