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I have been looking at buying an investment apartment in Uptown while my daughter is at UNC for college.
My plans would be to rent it out through Airbnb and then use it when I want to go visit her. I have found a company that will clean the place for me that does other Airbnb properties like the Skyhouse and other buildings along Church and Tryon. The whole thing makes financial sense except for one thing:
Every apartment I am looking to make an offer on is selling for the same or less than what the current owner paid. My leading place is on 5th street near Church and it is immaculate, the building is great and the price is inline with everything else the Realtor has shown me but in researching the tax history I would only be paying $3000 more than what they paid for the apartment 8 years ago.
This is the case with all 12 apartments I looked at. I could buy one apartment near Frazier Park for $10,000 less than what the current owner paid for it just 4 years ago, What is happening in Uptown and the next ring out as far as prices?
I want to hold this place for 5 or 6 years and have it increase enough in value to at least cover the realtor commission. That would be a measly 1% per year and it looks like nothing in Charlotte Uptown is appreciating at all!
Don't use a realtor to sell your condo when you are done with it. I have sold several homes by owner and it is quite easy as long as the property is in good condition and in a good location.
A little more detail: She will be on campus at UNC.
We are looking to buy as an Airbnb property and just stay there when we need it.
Based on other property owners that rent apartments through Airbnb in Uptown a one bedroom seems to generate about $3000 a month after Airbnb fees as compared to about $2000 a month as a regular monthly rental. And of course in both cases the HOA fees which includes taxes, electric, water, trash etc is the same either way.
The place comes with 2 deeded parking spaces and I am also told I can rent the second space out for about $150 per month.
It seems hard to believe that Charlotte is at the top of a bubble, it seems like the prices peaked about 5 to 8 years ago and that's why I can get these places for less than what they paid in 2008 to 2015 almost across the board.
I like uptown and if I can't sell to break even I can just keep renting it out I was more worried about something like uptown having a crime increase or something similar that is driving prices down.
Also we would be willing to buying anywhere along the train line that goes out to UNC, I think the Blue line. We looked at NoDa but what a dump of an area that is. We know it may be up and coming but for right now it's a real nasty strip of shady clubs.
A little more detail: She will be on campus at UNC.
We are looking to buy as an Airbnb property and just stay there when we need it.
Based on other property owners that rent apartments through Airbnb in Uptown a one bedroom seems to generate about $3000 a month after Airbnb fees as compared to about $2000 a month as a regular monthly rental. And of course in both cases the HOA fees which includes taxes, electric, water, trash etc is the same either way.
The place comes with 2 deeded parking spaces and I am also told I can rent the second space out for about $150 per month.
It seems hard to believe that Charlotte is at the top of a bubble, it seems like the prices peaked about 5 to 8 years ago and that's why I can get these places for less than what they paid in 2008 to 2015 almost across the board.
I like uptown and if I can't sell to break even I can just keep renting it out I was more worried about something like uptown having a crime increase or something similar that is driving prices down.
Also we would be willing to buying anywhere along the train line that goes out to UNC, I think the Blue line. We looked at NoDa but what a dump of an area that is. We know it may be up and coming but for right now it's a real nasty strip of shady clubs.
Thanks all for your thoughts!
It's not about Charlotte being at the top of the market, it's that there are local bubbles that exist in every market.
Uptown property is highly speculated on as Charlotte is growing quickly, but it's also going to take the biggest hit if/when that growth slows or reverses.
Of course, your resell timetable greatly affects the likelihood of being affected by this, it's still a variable to consider...because when you sell others will.
It seems hard to believe that Charlotte is at the top of a bubble, it seems like the prices peaked about 5 to 8 years ago and that's why I can get these places for less than what they paid in 2008 to 2015 almost across the board.
I like uptown and if I can't sell to break even I can just keep renting it out I was more worried about something like uptown having a crime increase or something similar that is driving prices down.
It seems like you’ve done your research but I’m pretty sure your 5-8 years comment is not remotely accurate. 7-8 years ago was more like the bottom of the market IIRC. In many areas (which I would think would include uptown but not sure so maybe not), current prices are higher than before the bubble of around 2006-2008. I’d believe places selling for less than 2008 maybe up to even 2010 prices, but I’d think it should be higher than anything 2011 and later. Unless maybe some of these sold prices in 2010 or 2011 are the result of if people committed to buy yet to be built units several years earlier during the peak.
Hopefully the next peak is not so much a bubble and more of a plateau...
Two condos purchased by a friend and a relative in the past 7 years in the uptown area have not appreciated from their purchase price. Both sold in the past 8 months for their original purchase price.
Three condos in the UNCC area purchased during that same time period have appreciated. Two that sold averaged 15% gain. The third, while it hasn't been on the market, has been appraised at 25% more than original purchase price.
Two condos purchased by a friend and a relative in the past 7 years in the uptown area have not appreciated from their purchase price. Both sold in the past 8 months for their original purchase price.
Three condos in the UNCC area purchased during that same time period have appreciated. Two that sold averaged 15% gain. The third, while it hasn't been on the market, has been appraised at 25% more than original purchase price.
So when was the peak in uptown?
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