Buying an REO to Rent in Charlotte, NC

"So Emily… " my students sometimes ask me… "We know you do a ton of commercial investing with Grasslands now, but do you ever work on the lowly, measly single family homes any more?"

That is a great question – since I teach a lot of people about investing in Single Family Homes through my work as a real estate coach for Mentor Financial Group, LLC it only makes sense that I continue to practice what I preach.

As it turns out, I have a number of rental properties (Single Family Homes) still in my portfolio in North Carolina.

I am also working right now to pick up another property in Charlotte, near my in-laws.  This started as a project to make the family trips back there also business trips and tax-deductible.

I ended up finding a great deal on a nice, big, new house that was bank owned.  Originally listed for $170K, it will rent for about $1200/month we think.  I am buying it for $130K – close to 75% of market value.  Should cash flow from Day 1, even with property management – we are putting 10% down on the loan.

I want to walk you through this process of how I found it and closed it (hopefully it will close – I’m still in the process of working on it, now).  We got a clean inspection back on Wednesday.   Now we’re scheduling the appraiser to go out and take a look.

Step 1: Finding a great real estate agent.  Do some research, I did mine mostly on the web, to find a realtor in the area you want to invest who specializes in the type of property you want.  I used Tanya Carlisle at http://www.charlottereo.com/ and she has been great!  Very patient and understands that investors need to get deals where the NUMBERS work!

So – finding a great realtor (or two!) is a good step.  I also had good luck working with Kerry at www.HendersonProperties.com.  She is very aggressive and knows the up and coming areas downtown.  I made an offer with her, but it fell through after inspection.

Tune in next time for step two!  You might want to subscribe to this blog so you don’t miss what’s coming up!

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