Raleigh-Durham Real Estate Blog

Well hello!

I know it’s been a while since my last blog entry. We’ve been very busy over here at the office.  But, given that we're at the start of a new year, I thought it a good time to touch base with you to share a few bits of useful info to help kick-start your 2012. 

Real Estate Tax Credits still exist

Gone are the wonderful days of the 1st time homebuyer's credit. But, there are other, lesser-known, tax benefits that investors and homeowners can leverage to their benefit.  In many cases, these tax benefits far exceed the former homebuyer tax credit's $7500-$8000 limit.

What would you say if I told you that we recently completed a project that netted approximately $50,000 in dollar-for-dollar tax credits, $1000/month in cashflow (after expenses) and over $100,000 in equity for one of our investors (on a single-family home). All with the use of historic tax credits! Historic tax credits are a powerful resource for investors interested in buy-and-hold investing, rehabbing, wholesaling, or “flipping”. Historic tax credits can benefit all 4 of these investing avenues. They can also be very useful for investors whose income/tax bracket negates some of the other tax benefits of real estate investing. BUT, it is VERY important to understand the ins and outs when using them. I’ve taught multiple live classes on this topic locally and have decided to open this up to our Investor Network (i.e. YOU). So, stay on the lookout for our upcoming teleseminar/webinar series on historic tax credits (for both homeowners and investors).

On a smiliar note, who says you can’t mix historic+green+affordable?   We've heard countless times that historic homes and energy efficiency don't mix.  Also that solid historic restorations can't be done affordably.  Visit our partner construction firm's site http://www.coralbuilt.com/#!press and select the “green+historic+affordable” article to see how we were able to combine all 3 of three goals into a successful project that is affordable, historically correct, and certified by the National Association of Homebuilders as an Emerald green-rated renovation (their highest award).  We hope that this will motivate other owners to keep energy efficiency in mind while renovating their historic properties.  The real surprise in this project is that the future owner will not only have a beautiful home, but will receive approximately 30k in historic tax credits to boot.

New Year insurance check-up

Call your insurance agent today to increase/decrease coverage limits on your properties. You might consider adding a provision that automatically adjusts your coverage each year to follow inflation/appreciation, or call annually to be sure your current property value (and the cost to rebuild in the event of a fire, etc…) is covered. We spoke with a client recently who suffered a fire, and, unfortunately, the replacement cost coverage on his policy wasn’t enough to rebuild the property, SO he had to get a loan on top of his insurance payout in order to rebuild. Don’t get caught in this situation. Call your insurance agent today to be sure you are covered. Or, visit our Service Professionals page for a few names of local insurance providers that can help. Tell "em Tiffany sent you!

New Residential Property Disclosure for 2012

As investors, as with all other home-sellers, there are a few forms that are REQUIRED upon receiving an offer from a potential buyer. One of these is the state-mandated NC Residential Property Disclosure. Keep in mind this form is a state requirement, per the NC General Statutes, for ALL residential dwellings up to 4-units. This IS NOT just a Realtor requirement. It is therefore required that you, as a seller, present this to potential buyers even if you are not leveraging the assistance of a Realtor. The form has changed for 2012 and includes some additional disclosures that you should be aware of. Visit http://www.ncrec.gov/forms/rec422.pdf for a copy of the new 2012 form (now titled the “Residential and Owners Association Disclosure Statement”). Keep this and all other state-mandated forms in your files to be sure your files are in order and in compliance with state law.

Featured Property

9 Sargent Place, Durham, NC

Solid cashflow in Durham for only $110,000!

4-unit (quad) rental. 2 stories (2 units on each floor). $1580 gross rents. 2011 tax value of $128,578 and property tax bill of $1676. Built in 1973. Each unit is approx. 750 sq ft, 2 bedrooms, 1 bath. Brick and vinyl exterior. All units occupied at $395/month. Property manager is in place and can take over management for the new owner, if needed. Viewings of 1 unit for interested buyers can be arranged with a minimum of 24-hour notice. (Your offer can include a provision, of course, to view and inspect remaining units. The owner doesn’t want to disturb tenants unnecessarily.) Per a conversation with one of our lenders yesterday, financing at 25% down and 4.5% is available to qualified buyers (based on 1/10/12 rates), so, with the right financing, this one is CASH FLOW STRONG! Contact Heather Sirgany with Harrington Bank @ (919) 945-7873 or Stephen Livesay with Prime Lending @ (919) 656-4516 for details on financing and/or preapprovals. Crunch your numbers and give us a call on this one!

Ok, I think I’m done now. To close, I want to extend my wish for you that 2012 is an amazing year (both personally, professionally and financially).  Our team plans to provide as much information as we can to help you meet your goals, because we realize that when our clients win, we win.  Let me know if there’s any way in which we can help.

Happy Investing!