All Forum Posts by: Pat Lulewicz

Successful deals are increasingly more difficult to come by. You and your successful deals should be celebrated! As importantly, we can all learn and grow from both successful deals, and deals that went sideways. This month, we are opening the floor to YOU! We are looking for you to come and share a deal you have worked on at our “Deal show and tell” event. Get some numbers together and maybe some pictures and we can show off your real estate strategy and results. Please send anything you would like displayed in the slide show by Wednesday, August 20th by 8:00pm

Bring live deals you are working on, wholesale opportunities, past horror stories or successes. Most importantly, be willing to answer questions from the floor. If you don’t have a deal, no sweat, this will be a rather laid back installment with plenty opportunity for open networking.

Durham doesnt have STR restrictions; kind of a wild-wild-west. Sounds like you're going to sublease the home after signing the master lease? Just make sure this is clearly noted in your contract or else you will be illegally subleasing the home. You don't necessarily need a NC LLC to hold a lease or operate a business; just need to remit the appropriate taxes.

Can you explain the "I will not be collecting any money on behalf of the landlord and plan to launch in about a month"? It seems to contradict the sublease/arbitrage model.

Financing at your age to buy a property will be hard; whether you buy or rent, you almost certainly will need a guarantor/co-signor due to credit, age, employment situation, and income. If you have someone that will help with this, then it can be an incredible idea.

A suggestion in your college years and early 20s before you can or want to buy is to find a HUGE (5 bedroom) house, rent that yourself, and then (assuming its okay with landlord and contract), rent out bedrooms to friends you go to school with at a higher price than the per/bedroom rate. Example: rent is $3,500 for 5BR ($700/room). Charge $900/room for the other 4 rooms to friends and you get to live for free...its a form of arbitrage and you aren't responsible for repairs, capex, rising insurance costs, etc like if you had bought it to house hack it. At these interest rates, I think this is way more powerful in this environment.

Otherwise, I like what Tony said: get some hands-on experience on weekends (PM me and we can talk), swap labor for knowledge with people in the industry, join UNC RE club/groups, and come out to RE meet-ups around the Triangle on evenings when you can swing it. Absorb everything.

You may be conflating the 2 terms or what they each do. Attorneys perform all the steps necessary to make sure your closing is done properly and legally. One of those is checking for clear title and (usually) getting title insurance; they do this by working with a title company. There may be some that do both (attorney with in-house title) but I don't really get into the semantics; you hire an attorney to do the necessary tasks to close your transactions.

Not a BRRRR investment; just a turnkey rental. Similar to the comments above, depends on your calc of expenses. If its a true reflection of the property, 6%-7% with leverage is incredible...as I say that, alarm bells should go off about "well why hasn't someone else bought it" so make sure to do your homework.

A bit flawed to compare RE returns to S&P...too many different variables; most people don't consider the advantage of depreciation and the tax benefit that can have on your personal financials + the equity paydown by your tenant that is a $ for $ add to the ROI..."cash flow" is not the only numerator in CoC return in my perspective.

Awesome portfolio; a lot of lenders will do second-home/vacation-home loans with less than 20% down. Consider a beach-town or mountain-town home for personal use and STR. Would take addl capital to furnish, but still a lower overall DP and a lifestyle asset.

 Great results, Andrew! Love to see the success!

Manage a few STRs in the Triangle and always watching STR data. I sent what @Trey Maclin

 said that it is a solid market. Definitely check neighborhood/proximity supply before you buy so you aren't too saturated without the occupancy to support the supply. 

Hard to be specific about top line revenue without knowing the type of home. 4-5BR with a pool can pull down $60k-$80k but a 1BR apartment wont do that so wide range. Your price just has to match the head count/location and as you could imagine, the more heads in beds = the more revenue.

Seasonality hasn't been too bad for ours. With the level of development around here, our winter/offseason has generally been filled by construction crews, but bdays, funerals, and everything in between that families celebrate drive traffic to the Triangle.

I am PMing you my contact info

What rent rate are you willing to pay? Keep in mind that there would likely be built-in escalations if you wanted a 5-year lease (think commercial real estate).

Have you gotten your 2025 property tax eval yet?

Your MLS listing doesnt have Property Disclosures - did you complete those with your Realtor? Can they upload them or you provide?

How many occupants? Pets? Are you looking to have zero responsibility post-sale and be purely a tenant from a maintenance perspective?