All Forum Posts by: Varma Adduri

Dear BP members, I would like to start out of state investing and i though North Carolina is a good place (due to family and other reasons)

I am looking for Buy and Hold rentals with 20% down. SFRs with 3/2/2 under 200k. I am looking at Raleigh, Durham, Cary in North Carolina. 

Need your suggestions on 

1.Particular areas that i should be looking at in these cities. 

2.Areas with better schools

3.Which city is better among the 3 (Raleigh, Durham, Cary)

Since it is out of state for me, any suggestions on good property management company.

Thanks a lot in advance.

It's % of rent, not ARV. We have to factor in A portion of rent for these to get more realistic cash flow numbers

Generally vacancy will be around 6%, maintenance is 6% and property management is 9%. If you plugin the numbers in bigger pockets calculator you can see the cash flow. Since ARV is 180000 and you are offering 120k+15k (repairs) + 4K (closing). There will still be around 40k equity As per your plan, If you BRRRR and refi for 180k you can get the unit with no money down (80% of 180k is the refi amt) If it still cash flows after refi then it's a good deal

@Pavlos Kasselouris, Congratulations first of all. Just curious about working with title agent. Lets say you are shortlisting properties before a week of auction and you are sending the list to the agent to do a title search? Did you work out a group deal wiht him? What are the costs like to engage a title agent? Does he charge per property or a fixed price /month?

Assuming property taxes of 3500$, 6% vacancy and 9% property management fee, the cash flow can be 100-150$. With 20% down the cash on cash return will be 2.5 to 3.5%. It's not a lot. +ves It is cash flowing If you choose to manage yourself you can cash flow better If the area is good, appreciation can be good Negatives With close to 50k down, cash flow of 1500$ is not a lot

Very nicely put. They are some nice tips out there

I got a HELOC from TD bank. It was a drive by appraisal. They lent 70% of home value - loan balance

Corby Goade , one of the 3 loans is on my primary residence. The loan amount on that one is very high. So my LTI is borderline

Great Info

Thank you all. Great advice