All Forum Posts by: Shalanna L. Pirtle

I live in Steele Creek, and would look to remain here. There is large multi-family development occurring throughout the area now and will continue for a while. I obviously wouldn't be on that scale but that might be the answer to guide my thinking.  Thanks!

Thanks @Melissa N.! A multi-family unit does not work long-term, though I'm in a position where anything can be done for a short while. I guess the bigger question is the probability of finding a tenant. I've heard from numerous folks that it is harder to rent a multi-family unit. Should I be concerned about that? And knowing that this would need to be a short-term solution, should I opt instead for something that I can live with if things go kooky and I wind up stuck with it a while?

Thanks Patrick Liska ! The "area I was thinking" is nearby - within a 1 to 3 mile radius. I can't go too far due to family constraints, nor would I want too, I love it here. As for the equity, there is some but not enough get a HELOC. I've done a couple re-fis over the years, most recently about 13 mos ago. How else can I get at the equity?

BP Family, deciding which route to take to take to acquire a rental property and would love your two cents. I live in Charlotte, NC and own my primary residence in the fastest growing region of the county. I am debating between either: a) acquiring a rental in one of the local transitional neighborhoods via conventional or owner finance (and would need to make a down payment) or b) renting out my single family home and moving to a new place (as yet identified nearby). Rents for a property in the transitional neighborhoods will range from $1000-$1100, with a 10% CAP rate. Rents in the .5 mile radius of my home range from $1650-$2000, and I would likely be able to demand around $1800 for mine, with about a 15% (conservative estimate) or greater CAP. (Those numbers alone may well make the decision a no brainer, but read on!) The following are some considerations I'm toying with: I built my home new and have lived in it for almost 9 years. It requires no rehab, the major systems/roof should be all good for another couple years and then some and likely only needs some cosmetic touches to get it ready for a renter (coat of paint in some rooms, etc.) Note that the rental properties I am considering are all turnkey or are already cash flowing, so no significant (or zero) costs for make-ready on that front either. If I move, there will be obvious move and possibly storage costs, as well as the loss of time spent purging/packing/unpacking. (Even if I paid packers, still have to get organized). I suspect the next place will be temporary (1-2 years), unless it's a super great deal, so that means those move costs will make an appearance again in a short time period. If I move, what do I move too? An SFH I purchase (that requires a down payment to acquire)? An SFH I rent (obviously if I rent, I lose the tax benefits of primary home-ownership, but might that be off-set by the rental income and business expenses?) A 2, 3, or 4-plex that I buy, living in one unit and renting the others (have heard conflicting views about some multi-families being harder to rent)? If I'm purchasing the next property, do I look for one that requires a little rehab and can be flipped in a year or more, or find one that is mostly move-in ready (but less expensive than my current home)? Or do I just set the max price point and work with whatever deal pops up in those numbers rather than trying to narrow the field now? Re: acquisition costs - I can put my hands on enough funds to acquire the transitional neighborhood rental and have a good-sized cash reserve today. If renting my place and purchasing a new primary residence, I'll likely need a little more time to build up enough for a down payment and have a cash reserve. In either case, once the property is acquired, I'll likely need 8-10 months (maybe more) to build up another down payment/reserves to acquire another property (this obviously doesn't refer to "subject to" and other creative finance deals). I could be over-thinking it or maybe haven't asked enough questions! But I would appreciate your thoughts as I noodle on all of this, especially from my fellow Queen City experts. Thanks!!

BP Family, deciding which route to take to take to acquire a rental property and would love your two cents. I live in Charlotte, NC and own my primary residence in the fastest growing region of the county. I am debating between either: a) acquiring a rental in one of the local transitional neighborhoods via conventional or owner finance (and would need to make a down payment) or b) renting out my single family home and moving to a new place (as yet identified nearby). Rents for a property in the transitional neighborhoods will range from $1000-$1100, with a 10% CAP rate. Rents in the .5 mile radius of my home range from $1650-$2000, and I would likely be able to demand around $1800 for mine, with about a 15% (conservative estimate) or greater CAP. (Those numbers alone may well make the decision a no brainer, but read on!) The following are some considerations I'm toying with: I built my home new and have lived in it for almost 9 years. It requires no rehab, the major systems/roof should be all good for another couple years and then some and likely only needs some cosmetic touches to get it ready for a renter (coat of paint in some rooms, etc.) Note that the rental properties I am considering are all turnkey or are already cash flowing, so no significant (or zero) costs for make-ready on that front either. If I move, there will be obvious move and possibly storage costs, as well as the loss of time spent purging/packing/unpacking. (Even if I paid packers, still have to get organized). I suspect the next place will be temporary (1-2 years), unless it's a super great deal, so that means those move costs will make an appearance again in a short time period. If I move, what do I move too? An SFH I purchase (that requires a down payment to acquire)? An SFH I rent (obviously if I rent, I lose the tax benefits of primary home-ownership, but might that be off-set by the rental income and business expenses?) A 2, 3, or 4-plex that I buy, living in one unit and renting the others (have heard conflicting views about some multi-families being harder to rent)? If I'm purchasing the next property, do I look for one that requires a little rehab and can be flipped in a year or more, or find one that is mostly move-in ready (but less expensive than my current home)? Or do I just set the max price point and work with whatever deal pops up in those numbers rather than trying to narrow the field now? Re: acquisition costs - I can put my hands on enough funds to acquire the transitional neighborhood rental and have a good-sized cash reserve today. If renting my place and purchasing a new primary residence, I'll likely need a little more time to build up enough for a down payment and have a cash reserve. In either case, once the property is acquired, I'll likely need 8-10 months (maybe more) to build up another down payment/reserves to acquire another property (this obviously doesn't refer to "subject to" and other creative finance deals). I could be over-thinking it or maybe haven't asked enough questions! But I would appreciate your thoughts as I noodle on all of this, especially from my fellow Queen City experts. Thanks!!

Slip and falls are common, particularly if you live in an area of the country that sees significant winter weather activity. Or, if you fail to properly maintain some aspect of your property (even unintentionally!) and a tenant or visitor is otherwise injured or suffers significant property damage, don't think for one second they will hesitate to go after everything you have. Forget about the fact that they should have renters insurance to cover the property because it won't stop a determined litigant from coming after you. You name it, it can happen. It costs a plaintiff very little to file a lawsuit in most cases (couple hundred bucks), and you could be saddled with thousands in costs of defense, be at risk for losing the property, your personal assets, not to mention any other rental properties that you hold in your personal name. The umbrella policy is a start but even it has its limitations. I know that some don't feel the need, and perhaps an LLC is not for you. However, the possibility for exposure to a judgment, and suffering some type of loss, are very real in this business, thus it is critically important that you consult a professional (or two) before you settle on your business formation and asset protection strategy.

@Dave Hurt, congrats! I look forward to watching your journey and joining you with that first one under my belt soon and very soon!

I'd like to set up an LLC to hold my first REI purchase. I don't want my tenants (or frankly anyone else) to be able to easily discern that I own an LLC which owns X number of properties. Am I wrong in thinking that my ownership will be discoverable via review of the Articles of Organization? Are there workarounds?

Agreed 100% @Chris T.  was rushing to the next meeting and couldn't articulate my thoughts quick enough to give a more substantive response but I couldn't have said it better. In addition, a couple of those neighborhoods are fairly saturated already by non-buy and hold investors, thus making it much harder to get in at a good deal price-point. There are still deals to be found if you dig deep enough but I'm not sure that was the best title for the article. ;) Thanks again

@Cindy Bowman!

Thanks for sharing @Cindy Bowman. I read quickly, but I wonder if the sole criteria for determining best locale for investing was increase in value/purchase price? Interesting list!