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Old 11-29-2011, 03:37 PM
 
368 posts, read 811,689 times
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I'm assuming it's not an attractive deal simply because I --someone not involved in real estate in any capacity -- know about it and it hasn't already been purchased by an investor. Although I'm not 100% sure what "under contract" actually means.

Quote:
$41,900 home in South Charlotte near Arrowood - brick built in 1966. 1200 SF, 3 bedrooms, 1.5 baths. This home is under contract - took 11 days. Fannie Mae property so seller will pay closing costs. Estimated payments based on purchase at $38,000, 4% down at 3.75% interest = $170/month. This does not include taxes and insurance - estimate another $200 month for those
Pardon my ignorance, but would it now be a good time for someone with cash to get into the rental market?
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Old 11-29-2011, 03:51 PM
 
Location: Union County, NC
2,115 posts, read 6,441,208 times
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That very nearly describes the home we purchased in Charlotte one year ago, for cash, as a rental property. From location to specs, etc. 1/3 of an acre. We paid far less though. All improvements were cosmetic. We just replaced the HVAC. It's successfully rented out with a great tenant.

From locating home to inspections to survey of land to closing took maybe 12 days since there was no financing involved. The seller wanted a quick closing and so did we.

I'm no real estate expert. I've been told "this isn't time to buy". If not now, then when? Given the opportunity I would purchase again. There are literally 100s of similar deals out there. And this is an opportunity I would never have come across in NJ.

Oh, yeah, "under contract" means someone is under contract to purchase. It was only listed for 11 days apparently.
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Old 11-29-2011, 04:15 PM
 
15 posts, read 43,893 times
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Well, you will here a different opinion from one to another regarding " is it the time?" to purchase. I look at it like this. Based on the lowest point in prices of recent time we now see prices edging up. However, they are not climbing as fast as they fell but never the less they are off of their lows. I honestly don't feel as if we are going to experience going below the lowest prices of a year ago but that is just my opinion. I think that older homes are a good value at the right price and have bought at the right time too, in another market. We are currently "under contract" to purchase a new construction home and the pricing was excellent their too. It's all about quality, condition and location that makes up every price of every home whether old or new. As for being in the home rental business. If you have cash to buy in this market then yes it's a good time. If you have the patience to get involved in the business then yes it's a good time. I am like yourself when it comes to having no affiliation with being a Realtor but I have bought and sold a few homes in my lifetime. No better time than now if all of conditions are right with you! Good Luck!
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Old 11-29-2011, 05:16 PM
 
Location: State of Being
35,885 posts, read 67,023,037 times
Reputation: 22370
It could be a great deal for an investor, assuming it is not in a high crime area - or in an area that is turning into a high crime area . . . and of course, assuming there are not major structural issues, a toxic waste dump nearby, a highway expansion on the horizon, etc. etc. etc.

Just do your homework. If you have the $$ and feel the neighborhood is a good risk as far as the renters it will attract . . . do what you feel is right for you.

PS. Under contract means someone else has put in an offer on it wh/ has been accepted. Unless the deal falls thru/ that house is essentially "sold."
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Old 11-29-2011, 05:54 PM
 
7,105 posts, read 9,701,079 times
Reputation: 2564
A couple of thoughts to ponder:

1) In every graduating class someone was #1 and someone just got by and was last in the smarts category. Who know where the person that "went into contract" graduated?

2) Location is more than zip code, block by block....it's a lot more than that. What about state, city, potential, business conditions? Evaluate CLT. Old, cheap, house. That's what you got. Good price compared to what? It is what it is and may be worth less that what you mentioned b/c what I said about.

3) Houses are a commodity and should be evaluated as such. The commodity you illustrated has little or no value as an investment in this market in MY opinion. My bolding has been wrong many times. LOL
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Old 11-29-2011, 06:45 PM
 
368 posts, read 811,689 times
Reputation: 310
Quote:
Originally Posted by saralee View Post
That very nearly describes the home we purchased in Charlotte one year ago, for cash, as a rental property. From location to specs, etc. 1/3 of an acre. We paid far less though. All improvements were cosmetic. We just replaced the HVAC. It's successfully rented out with a great tenant.

From locating home to inspections to survey of land to closing took maybe 12 days since there was no financing involved. The seller wanted a quick closing and so did we.

I'm no real estate expert. I've been told "this isn't time to buy". If not now, then when? Given the opportunity I would purchase again. There are literally 100s of similar deals out there. And this is an opportunity I would never have come across in NJ.

Oh, yeah, "under contract" means someone is under contract to purchase. It was only listed for 11 days apparently.
Sounds like you got a great deal. I didn't know housing prices even went this low.

Quote:
Originally Posted by zenieth View Post
Well, you will here a different opinion from one to another regarding " is it the time?" to purchase. I look at it like this. Based on the lowest point in prices of recent time we now see prices edging up. However, they are not climbing as fast as they fell but never the less they are off of their lows. I honestly don't feel as if we are going to experience going below the lowest prices of a year ago but that is just my opinion. I think that older homes are a good value at the right price and have bought at the right time too, in another market. We are currently "under contract" to purchase a new construction home and the pricing was excellent their too. It's all about quality, condition and location that makes up every price of every home whether old or new. As for being in the home rental business. If you have cash to buy in this market then yes it's a good time. If you have the patience to get involved in the business then yes it's a good time. I am like yourself when it comes to having no affiliation with being a Realtor but I have bought and sold a few homes in my lifetime. No better time than now if all of conditions are right with you! Good Luck!
I've read various opinions lately of people saying housing prices have more or less hit their bottom, which is what prompted me to start investigating.

Quote:
Originally Posted by anifani821 View Post
It could be a great deal for an investor, assuming it is not in a high crime area - or in an area that is turning into a high crime area . . . and of course, assuming there are not major structural issues, a toxic waste dump nearby, a highway expansion on the horizon, etc. etc. etc.

Just do your homework. If you have the $$ and feel the neighborhood is a good risk as far as the renters it will attract . . . do what you feel is right for you.

PS. Under contract means someone else has put in an offer on it wh/ has been accepted. Unless the deal falls thru/ that house is essentially "sold."
Good point. Would probably want to do some homework, observe/talk to neighbors, etc.
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Old 11-30-2011, 04:59 AM
 
1,547 posts, read 2,170,034 times
Reputation: 1400
It is, but think about your potential clients for this area. Is it worth it?
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Old 11-30-2011, 05:13 AM
 
7,105 posts, read 9,701,079 times
Reputation: 2564
Quote:
Originally Posted by ClevelandMike View Post
It is, but think about your potential clients for this area. Is it worth it?

There you go! So, that makes "It is"...... no it's not a good deal.
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Old 11-30-2011, 05:54 AM
 
Location: State of Being
35,885 posts, read 67,023,037 times
Reputation: 22370
Quote:
Originally Posted by ClevelandMike View Post
It is, but think about your potential clients for this area. Is it worth it?
That is the crucial question when looking at properties here in Charlotte. What LOOKS like a good deal on paper may be in the middle (or on an expanding edge) of a high crime area.

That is where folks from out of town can really screw up.

One of my friends moved here from LA, California. He was anything but naive - very aware of his surroundings. He was working on a house he had bought on the edge of an "iffy" area (as rental property). . . and got hit on the back of the head (while painting) and they stole everything - from his wallet to the paint and tools. So he decided to get a concealed carry permit. Before that went thru/, the house was broken into AGAIN and vandalized. New windows broken, etc.

He did finally get the place fixed up, got it rented, but couldn't keep it rented. Consistent vandalism, calls to police, etc.

As a landlord, you have more to think about than making sure you have decent renters, wh/ in itself can be a real challenge.

Just something to consider.
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Old 11-30-2011, 06:16 AM
 
7,105 posts, read 9,701,079 times
Reputation: 2564
That's a BIG "something"!!! ^^^^^^^^^
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