BRRRR in North Carolina

• Local codes & permits: Rehab timelines and requirements vary by city/county; confirm inspections early.
• Property taxes & insurance: Reassessments and rate shifts can impact DSCR; underwrite conservatively.
• Landlord‑tenant rules: Screening, deposits, notices, and eviction processes differ by jurisdiction.
• Contractor capacity: Validate bids, scope, and change order terms; keep tight draw schedules.
• Refi criteria: Seasoning, LTV, DSCR, and appraisal standards influence your timeline and proceeds.

Regulatory Landscape

• Landlord-friendly eviction laws with 10-day notice for non-payment and streamlined court process.
• No statewide rent control; state law preempts local rent stabilization ordinances.
• Security deposits limited to one month's rent for month-to-month, 1.5 months for longer terms.
• Property tax appeals process available; regular reassessments can benefit from professional review.
• Building permits vary by municipality; most major metros have efficient online systems.
• Lead paint disclosure required; standard asbestos regulations for renovation projects.
• Short-term rental regulations emerging in popular areas; licensing requirements vary by city.

Financing Tips

• Model exit scenarios if ARV or rent land below target.
• Carry reserves for overruns and refinance delays.
• Lock rates strategically; track market movements.
• Document rehab thoroughly to support appraisal value.

Speak with Jake N Finance Group to size leverage and timeline.

Financing Benchmarks

• Target DSCR ≥ 1.25–1.35x given North Carolina's growth fundamentals and rental stability.
• Purchase LTV typically 75–85% for qualified investors in primary markets.
• Refi LTV commonly 70–80% with strong appraisal support from market appreciation.
• Seasoning requirements 6–9 months; shorter periods available for experienced investors.
• Carry 10–15% rehab contingency due to increasing construction costs and permit timelines.
• Maintain 6–10 months reserves; markets show good economic resilience.
• Property management typically 8–10% gross rents; military tenant management may warrant premium.