5 Steps To Buying Rental Properties In North Carolina

Considering buying rental properties in North Carolina? Here are the basic steps:

Step 1. Why Rental Properties

Before buying rental properties in North Carolina, NC, ask yourself: what is my goal with the property? Will I be renovating and reselling the property? Will I hold the property long term and collect rental income? Will I live in one of the units? These answers will guide you to finding your ideal purchase.

Step 2. Locate the Rental Property

There are a handful of ways to find rental properties to buy. First of all, you can call us at (910) 218-8185 and we can help you find what you are looking for in North Carolina. You can work with a Realtor who has access to the multiple listing service, or MLS. You can also find properties for sale by owner on public posting boards online. There are also public auctions held by cities and counties in NC that frequently offer rental properties for sale, mostly due to unpaid taxes. Working with a real estate professional might be ideal if you are new to buying rental properties, they know the tips and tricks of the trade. You also might want to look for an area in or close to the municipality of North Carolina where the rental demands are higher, you will probably be able to ask a higher rental rate.

Step 3. Evaluate the Investment

Real estate professionals have easy access to most sources of information for research on rental properties. It does not hurt to do your own research, just to double-check. 

Search the county records for the deed and ownership history. There should be a nice, clean chain of owners from one to the next. If not, there will have to be legal paperwork done that takes time and costs extra money. Make sure to look up the property taxes, if there are any open certificates and you purchase the property, the owner might be able to take the property back from you before the waiting period is over, typically 4 years. 

Review the physical characteristics of the property, will it be large enough for your plans? Is it on a canal? Does it have direct access to the utility system? Are there plans for utility expansion? What is the ROI of this investment, does it meet my goals? Check into the plat maps and any surveys available to make sure there are not any surprise easements you are unaware of.

Step 4. Finance Your Property

You’ve found the rental property you want to buy. Now it’s time to fund the closing! How are you going to do that? Do you plan to pay cash, or do you need a loan? If you need a loan, there are a handful of banks willing to finance an investment property. Make sure your financial status doesn’t change during the closing process. Another option would be to form a partnership to invest in rental properties where you would form an agreement to pool your funds to buy a larger portfolio of property with larger returns!

Step 5. Hold Your Rental Property

Now that you’ve purchased your rental property, what is your holding plan? Are you going to flip it right away, or will you hold it for a few years? Keep in mind, the faster you make a profit by reselling, the larger tax you may have to pay. The longer you hold it, the less capital gain tax you will have to pay when it’s sold.

Give Homebuyers of NC a call today at (910) 218-8185 or send us a message to discuss buying rental properties in North Carolina, NC. We can help you locate and evaluate the available property to make sure it’s a good fit for your portfolio.

Jerry

Jerry has been involved in real estate for over 10 years. He graduated High School and enlisted in the Army, where he excelled in the Elite Army Rangers. Unfortunately, he sustained a major injury during a training exercise and was honorably / medically discharged after 4 years of service. He decided to attend Appalachian State University for both his undergrad and grad school with emphasis on Systems Engineering and Virtual technologies. He went on to work for multiple fortune 100 companies as an Engineer. Jerry stumbled into real estate investing with his father after deciding to fix up an old house down the street from his childhood home. After that house Jerry never looked back. Since then Jerry has helped hundreds of homeowners in selling, buying, and renting properties. Jerry has a GREAT team that works day in and day out to help homeowners sell their properties to local investors like himself. Contact Jerry info@homebuyers-nc.com

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