Charlotte Area Real Estate Best Buys: Charlotte Area Real Estate Best Buys

Another month into 2016, and the Charlotte market remains hot. As many of you know, I have come to the conclusion that searches focusing ONLY on REO’s and other “distress sales” are becoming less productive for investors. For one thing, banks, Fannie Mae, Freddie Mac and other institutional sellers of REO’s are aware the Charlotte market is hot, and they continue to price their inventory accordingly. For another thing, searching only for distressed properties inevitably places you in the midst of multiple offer situations in this market. Of course, multiple offers tend to bid the price of a property up, as the seller calls for “highest and best” offers. I think a better strategy for finding better values now is to focus on subdivisions or zip codes of interest, whether your business model involves a fast flip or rent-and-hold for future appreciation—or something in between.

One general area of Charlotte I find promising, regardless of your strategy, is the older southeast area that runs north along South Boulevard and the light rail. This area is comprised of subdivisions such as Madison Park, Montclaire and Colonial Village. It is still possible to find a home that has not been significantly updated in 40 years, acquire it at a good price, renovate it with reasonably upscale finishes and either flip it for a tidy profit or rent and hold it for appreciation that will probably outpace many other areas of Charlotte because these communities are located close to Uptown, shopping and transportation, and they are seeing a great deal of interest from buyers who aspire to a more urban lifestyle. The last home on my suggestion list is one such property. It went under contract at the beginning of March, but the contract failed and although status has not been changed back to “ACT” (active) in the MLS system, it will shortly be available again.

The reason the contract on the home described above failed is that the buyer under that contract was another “phony” investor. You see quite a few of them in this market. They sometimes call themselves “wholesalers,” which often means then try to tie up a property under contract and then flip the contract (rather than the house itself) to someone else who is willing to pay them a premium just for taking assignment of the contract. Many “wholesalers” don’t have the resources to close the purchase themselves, if they don’t find a buyer of their contract before closing. That is why I call them “phony” investors above. They enter into a contract with no real intention of closing themselves. They also cut into the true investor’s bottom line by taking an additional middleman’s cut. Many also hold no real estate license and try to fly below the regulatory radar. Beware.

Having said all of that, summaries of the properties on this month’s list appear below, and a link to all the MLS reports for these properties follows the summary:

#1 – MLS 3144908 – This is a 4BR/2.5 Bath REO in Mooresville with 2,268 sq.ft. of HLA. This one has been reduced to $154,900 and has a tax assessed value of $204,420.

#2 – 3159714 – 3BR/3BA with 1,896 sq.ft. of HLA in Weddington (assigned to top performing Weddington schools) on .60 acre. It is priced at $250,000 and has a tax value of $292,830.

#3 – 3160144 – 3/2.5 in Matthews/Weddington also assigned to top performing Weddington schools, this one has 2,453 sq.ft. of HLA on 1.16 acre. It is not a “distress sale” (e.g. REO, short sale, etc.) and has only been on the market 3 days at the date of this email. It is priced at $250,000 with a tax value of $272,080.

#4 – 3146328 – 3/2.5 in Kannapolis built in 2015. This one is a VA REO with 2,470 sq.ft. of HLA and upscale finishes. (VA tends sometimes to be a bit more negotiable than other institutional sellers.) It is priced at its tax value of $241,905.

#5 – 3147888 – This is a 3/2 in Madison Park (one of those older subdivisions near Uptown I discuss above). Some updating has been done, but this home is located on a busy street (Tyvola) and that may hold it back. It is priced at $239,900 and most area comps run into the upper $200’s and even low $300’s.

#6 – 3154627 – 3/2 REO is with 2,400 sq.ft. of HLA in N. Charlotte (28213). It is priced at $222,200 and has a tax value of $270,800.

#7 – 3160364 – Harrisburg Fannie Mae REO with 3BR/2BA priced at $199,900. As stated above, Fannie tends lately to price its inventory at or near market value, but Harrisburg is a desirable town very near Charlotte, with schools that perform well. Depending on condition, this one might still make an attractive rent-and-hold property.

#8 – 3138705 – 4/2 with 1,900 sq.ft. of HLA in Indian Trail (lower Union County taxes, still near Charlotte, assigned to schools that perform well). This one is priced at $165,000 with a tax value of $181,560.

#9 – 3159902 – 4/2.5 in N. Charlotte (28269), this Estate Sale has 2,760 sq.ft. of HLA and is priced at $159,900.

#10 – 3148712 – 3/2 also in N. Charlotte (28269) with 2,300 sq.ft. of HLA. This one is a short sale—and any of you who have dealt much with short sales know those are usually a waste of time and energy—but if it has been pre-approved at this price by the seller’s lenders, it might be interesting. It is priced at $140,000 with a tax value of $159,300.

#11 – 3154849 – 3/2.5 in N Charlotte (28214), this REO was built in 2001, has 1,874 sq.ft. of HLA and is priced at $130,000.

#12 – 3157613 – 3/2.4 in E Charlotte (28215) built in 2007, this is a HUD home (FHA foreclosure) with 1,924 sq.ft. of HLA and 5 days on the market. Of course, HUD has a 15-day owner-occupant preference period during which investors who do not plan to live in the home cannot bid on it. But if it survives beyond that 15^th day on the market, HUD can be a bit more negotiable on price that some other institutional sellers. It is priced currently at $117,500.

#13 – 3146422 – 3/2 REO in Indian Trail; this older full brick ranch is priced at $89,900 and has a tax value of $108,880.

#14 – 3131363 – This is the 3 or 4BR/2 full bath home in Madison Park I discuss above that is under a contract which recently failed. It is priced at $221,000, it is not a distress sale (was held as a rental property for 9 years), but the seller is negotiable on price. Comps in this area suggest an ARV of about $275,000+.

The link below will take you to the full MLS reports, with photos, for all of the above properties:

Click to view ALL property listings

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