Charlotte Area Real Estate Best Buys: Charlotte Area Real Estate Best Buys for June, 2016

Please excuse my delay in getting an update to my monthly newsletter out to you. In the past, I have compiled my lists by adding properties as they come onto the market over the course of a month. However, inventories of available homes for sale have been reduced to the point that I now must compile my suggestion list only a few days before publishing the list. Nearly every property noted weeks before the list is published has been going under contract in short order, and therefore off the market; and I just do not have sufficient free time to compile a weekly list. This remains a challenging environment in which to find good values for investors because more investors appear to be searching for fewer available investment properties. But good values always present themselves. The speed with which the buyer acts to get the property under contract has become more important than ever, and solid analysis of ARV (“after repair value”) is also more important than ever, as multiple buyers bid against each other for the opportunities that arise. You need to know what sort of offer is truly “reasonable” in this market (that is, likely to result in a contract), while also understanding when to stop negotiating and move on to the next opportunity. It is also worth reminding the reader that as this Charlotte area market has recovered and continued to heat up, tax value is no longer a good estimate of market value. In many cases, tax value is now significantly below market value; but this needs to be analyzed on a case-by-case basis.

A summary of the properties in this edition of the newsletter follows. (A link to the full MLS reports for all properties on the list appears after the summary):

#1 – MLS 3133591 – This is a Huntersville short sale with 4,591 sq.ft. of HLA, 4 bedrooms and 3.5 baths. It was built in 2005. Listing price is $380,000 and tax value is $481.900. Those of you who have dealt with short sales know that the listing price may not be sufficient to induce the seller’s lender(s) to release their mortgage(s), so the listing price may truly be “too good to be true.” Nonetheless, in this market, short sales can be worth investigating.

#2 – 3172051 – 3/2 REO in East Charlotte; back on the market after a failed contract at $79,000. Tax value is $87,200. Most of you who hold rental properties know that the yield on lower-priced properties such as this one can be better, as long as extensive rehab is not required to make it rentable.

#3 – 3182715 – 3 bedroom/1 bath Estate Sale in popular Madison Park. This area of older homes near Uptown has seen enormous interest in the last 24 months or more, and prices have escalated accordingly. This small home (only 1,200 sq.ft. of HLA) is located on a larger lot (.40 acre) and is priced at $210,000. On a lot of this size, some investors would either add to the existing home, or demolish the existing home and build a new one.

#4 – 3177021 – 3/2 with 1,801 sq.ft. of HLA in north Charlotte (28269); this REO purportedly had new HVAC installed in 2016, but otherwise still needs extensive work. It is priced at $150,000 with a tax value of $152,500.

#5 – 3162405 – 4BR/2BA REO in Concord, purportedly already renovated. It is priced at $149,900.

#6 – 3173425 – 4/2.5 built in 2002 with 1,900 sq.ft. of HLA in Kannapolis. This REO has been reduced to $114,900 and has a tax value of $142,900.

#7 – 3161787 – 3/2 REO with 1,359 sq.ft. of HLA and 63 days on the market at the time of this publication. It is located in NE Charlotte (28213) and has been reduced to $109,900, with a tax value of $117,400.

#8 – 3155987 – 3/2 REO in northern Monroe (28110) with 1,663 sq.ft. of HLA, reduced to $99,900. Tax value is $123,860.

#9 – 3177261 – 3/2.5 REO built in 2002 in NE Charlotte (28213) with2,158 sq.ft. of HLA, priced at $99,000.

#10 – 3178997 – 3/2.5 REO in E Charlotte (28212) with 1,545 sq.ft. of HLA, reduced to $85,000 with a tax value of $93,700.

#11 – 3147965 – 3BR/1BA REO in Concord with 1,992 sq.ft. (including a walkout basement) and 107 DOM at the date of this publication. It has been reduced to $52,600 with a tax value of $69,120.

A link to the MLS reports for all of these properties follows:

Click the following link to view the Residential:
http://matrix.carolinamls.com/DE.asp?k=331377XSXZH&p=DE-25140848-408

As always, if you have any questions about these or any other properties, please do not hesitate to contact me.