Charlotte Area Investor Suggestion List - Real Estate Best Buys for late August 2015 #CLT #realestate #investment

As the summer of 2015 winds to a close, the Charlotte real estate market remains strong.  There continue to be more buyers than sellers, as a general proposition, but profitable deals can still be found.  Fannie Mae appears to have been finding that its more recent practice of pricing is REO’s at or near market value was causing many to sit on the market for longer periods of time, and they have begun to back off that practice a bit again, depending on the home and its location.  Of course, Fannie Mae and HUD still have their owner-occupant preference periods during which investors cannot bid.  For Fannie, the preference period is 20 days.  For HUD, the period is 15 days.  Since Fannie tends to rehab its inventory a bit, many of its better values tend to sell during the owner-occupant preference period.  But there are a few on this list that have remained into the investor-eligible period.  HUD does little or nothing in the way of rehab, so its homes tend to linger on the market longer, and HUD tends to be slightly more negotiable on its listing prices.

Some of the online “auction” companies like HUBZU continue to provide interesting inventory, but the buyer needs to keep in mind that most of those properties involve a “buyer premium” of 4.5% or so.  I have discussed the “auction” process in previous editions of this newsletter.  It really is much less an auction than a marketing tool for the seller; but armed with accurate data on comparable recent sales, investors can still find attractive deals with some of these sellers—even with the “buyer premium.”

Until the last six months or so, it was generally possible to judge value by comparison of the listing price to tax value.  Depending on the area, this is less the case now.  Prices have recovered and continue to rise, especially in southern Mecklenburg and Union Counties.  So it is no longer advisable to dismiss a property just because listing price is close to tax assessed value.  There is no substitute for good research, and as good values for profitable flips and investment properties become harder to find, it is possible to miss opportunities by failing to recognize changing market conditions.

The link below will take you to the full MLS reports for the 15 homes in this edition of my newsletter.  If you first get a single line display when you click on the link, look in the upper right corner of the screen for a tab labeled “Display” and choose “full report with photos.”  You will be able to scroll through the full report for each of the properties on the list.  Summaries follow:

#1 – MLS 3088478 – Large 5 BR/2.5 BA home in northeastern Charlotte (28262), just above Harrisburg, in desirable Settlements at Withdrow.  This Fannie Mae REO was reduced on 8/25 to $204,900 and has a tax value of $224,700.  Fannie has probably already repainted and installed new carpet.

#2—MLS 3076599 – This is a HUBZU “auction” property, so see my brief discussion of such sales above.  This one is an older Monroe 3/2 with 265 cumulative days on the market (not much of an auction, huh?).  It is listed at $82,000 with a tax value of $124,030.  This one has a 5% buyer’s premium.

#3 – MLS 3102533 – This is a 3/2.5 HUD home in zip code 28215 (east Charlotte), it has 2,128 sq.ft. of HLA and has been on the market 20 days.  Listing price is $148,000 and tax value is $157,600.  Remember that HUD tends to be more negotiable on its listing price than some other sellers of REO inventory.

#4 – 3103144—Kingstree subdivision (28215) 4/2.5 with 2,405 sq.ft. built in 2002; this Fannie Mae REO has been on the market 32 days today.  It is listed at $147,500, and Fannie should be getting ready to deal.

#5 – 3047262 – This one is a short sale, for those who have enough patience for them.  It is a 3/2.5 in northern Mornoe (28110) with 160 DOM; it is listed at $115,000 (for whatever that’s worth in a short sale), and its tax value is $138,120.

#6 – 3103398 – 3BR/1BA Bank of America REO located on 1.5 acre in Monroe.  This one was built in 1950.  Listing price is $51,000.  Tax value is $108,680.

#7 – 3101346 – 3BR/2BA on .38 acre near Myers Park (assigned to top performing Myers Park High School); listing price is $275,000 with a tax value of $361,400.

#8 – 3104068 – This Gastonia 4/2.5 is located on .67 acre and is also a HUBZU “auction” property.  Buyer premium advertised on this one is 4.5%.  Listing price is $201,400 with a tax value of $317,170.

#9 – 3101717 – This one and the next would probably yield well as rentals because of their location and school assignments.  This one is a 3/2 on .46 acre in South Charlotte (Greenbriar community), assigned to sought-after Providence HS.  This is a Fannie Mae REO with 41 DOM.  It is priced at $189,900.

#10 – 3100016 -- Also a Fannie Mae REO, this one is a 3/3 located in Matthews.  It has just been reduced to $164,900 and has been on the market 79 days today.  It would probably generate good yield from rental.

#11--  3108204 – This is a 4/2.5 with 2,200 sq.ft. of HLA in zip code 28270 (Timberlake subdivision);  the listing warns there is some mold, but it is priced at $145,000 with a tax value of $171,500.

#12 – 3109631 – This is another HUD REO with 3BR/2.5 BA in zip code 28215.  It has been on the market 6 days today, priced at $90,000 with tax value of $94,100.

#13 – 3110699  – This is a 3/2.5 home on 1.40 acre in 28278 (near Huntersville); it is a Chase REO with a listing price of $87,360 and a tax value of $117,900.

#14 -- 3108794 – Another HUD home with 10 DOM today, this one is a 3/2 in Matthews with a listing price of $85,000 and a tax value of $108,100.

#15 – 3102765 – this is a 2/2 in Concord with 36 DOM; it is listed at $75,000 with a tax value of $135,660.

A link to the full MLS reports for all of these homes appears below:

Click the following link to view the Residential Reports:
http://matrix.carolinamls.com/DE.asp?k=331377XSXZH&p=DE-13597093-83

As always, if you have any questions about these or any other properties, please don’t hesitate to contact me.

Eric J. Dorer, B.S., J.D.

Broker/Realtor

Eric J. Dorer Real Estate

2740 Oxborough Drive

Matthews, NC 28105

Tel: (980)875-0950

e-fax (877)362-0917

email: ejdorer@gmail.com

web site: www.EricDorerRealEstate.com