All Forum Posts by: Curtis Mears

I have a long-term renter who is using my property for Airbnb rentals. My lease does not allow subleasing and the HOA also does not allow short-term rentals. I have contacted the lessee and told him he is in violation of the lease and must stop immediately. Is there anything else I can do?

In North Carolina, landlords are required by law to find a new tenant if an existing tenant decides they wish to break the lease for any reason. The existing tenant is only required to pay rent for the time before a new tenant is found. There is a benefit for me as the landlord in that there is zero vacancy. However, it seems more and more tenants are breaking leases and then I must make the effort to find new tenants. I am generally ok with this as again, zero vacancy, but, some tenants are breaking the lease after only a few months on a year lease. Does anyone know if I can include an early termination fee? If so, is there a limit on the amount?

No, I have only purchase SFH. Multi units are not very prevalent in the Raleigh area, at least in areas I want to own property. You mention the lack of apartment complexes in Raleigh, but this is changing. If you drive around Raleigh, you only see large apartment complexes being built. I would say 85% (this is only my observation) if not more of new builds around Raleigh are larger apartment complexes.

Appreciation has been strong in the Raleigh area. Two years ago, I was able to buy in the 150 to 170 range. Now, those same properties are in the 190k range. I have had to change my purchasing habits. Originally, I used an agent to work through deals. Some they found, others I found via Zillow. Now, pretty much any property coming through MLS is overpriced for my rental strategy. My last 3 deals have been through word of mouth and buying from neighbors of properties I already own.

Sure, I can give my 2 cents on a property you are looking into. 

Allen, I do not own any multi's so not as familiar with those. I do own SFH and my target when evaluating deals is 6% cap. It can be difficult to find because the housing market is very competitive. One issue you will discover is there are not many multi-family units available. I looked at a few several years back, but decided they were in an area which was going south. Most multi-units are not in the best area (but not war zones either) so you should definitely shoot for a higher cap rate.

I have used Brady Law Firm for several closings. I have not used him for setting up an LLC.

I am not the best resource for multis as I am only in SFH. I have looked at multis, but they do not meet my requirements for surrounding area. /The few I have researched have been in B-/C+ neighborhoods. Also, I think the supply of multis in Raleigh are pretty tight. I may be wrong on this, but that is what I observe and have heard from others more involved in them.

We need more information to answer that. Are you paying cash, because then it is a great place to cash flow. If you are financing all of it, it is more difficult. Overall, the market in Raleigh is very hot and nice houses go within a week. Houses that need work, are priced as if they were pristine.  You can work the price down, but still, finding a great deal is really tough. On the flip side, houses rarely stay vacant for more a than a week or 2, and rents have been going up.