Sweat Equity, Fix & Hold in a BOOMING Market

[Blake Novotney]

Investment Info:

Single-family residence buy & hold investment in Cape Fear.

Purchase price: $169,900
Cash invested: $30,000

-Purchased as a Fix & Hold
-Used owner-occupied 5% down conventional loan
-Remodeled the whole interior down to studs before moving in
-Almost all the work was done myself to cut costs down
-Plan to use as primary until the 1-year mark, then it will become either LTR or possibly STR!

What made you interested in investing in this type of deal?

The minimal cash required for entry was ideal, being 22-years old and starting out my portfolio as quickly and effectively as I can.

How did you find this deal and how did you negotiate it?

I found this deal on the MLS surprisingly (it can be done), and I was my own agent so I was able to negotiate on my own behalf. I negotiated a $7500 credit at closing and also got a home warranty.

How did you finance this deal?

I used a 5% conventional loan from MC Mortgage in Wilmington intending to occupy as my primary for 1-year. My commission covered my down payment, and the $7500 credit went towards my closing costs and the remainder of the down payment. My cash-to-close was less than $2,000.

How did you add value to the deal?

Being a Real Estate Agent, I got to represent myself and negotiate a great deal. I was all-in to this property before repairs at less than $2,000. I then renovated the property down to studs myself, saving a ton of money.

What was the outcome?

-I got into my first property for less than $2,000
-I am now sitting on an estimated $70,000 in equity

Lessons learned? Challenges?

The renovations took 3x as much time and money as I initially planned for.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am a Realtor at Aspyre Realty Group of Coldwell Banker Sea Coast Advantage here in Wilmington, and always happy to connect. My lender of choice is always MC Mortgage Group, an independent mortgage broker that is always coming out with new programs and creative solutions for investors.