SFR in Raleigh, NC in prime location

[Maria Dinshaw]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $465,000
Cash invested: $100,000

This property was purchased with the eventual plan to redevelop it into a luxury single family residence. It's a great location within minutes of North Hills shopping center. The lot is also nice and wide (though with a steep slope which will create a challenge for the redevelopment). We did a basic interior renovation to get it ready to rent and it's rented out currently until we're ready to start the project.

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

In one word - location. It's an excellent neighborhood which has already seen a lot of redevelopment activity. This house is one of the last ones left.

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

I came across the deal on the MLS and immediately called my agent. I was out of the country at the time but knew that a deal like this would not come up again. We made an offer without seeing the house - since the eventual plan was to redevelop it, the current condition of the property was of little significance. We were one of the first offers and the elderly couple who owned the home we so hassled by showings that they accepted our offer on the same day.

How did you add value to the deal?

We put in 25K to get the place to a livable standard so that it could be rented out but the real value add will come in the redevelopment.

Lessons learned? Challenges?

We had a hard time renting out the place. Even with a great location, we didn't put enough money into the property and should have done more work initially. That was a rookie mistake. Lesson learned.

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

Alina Karpenko was our agent. I wouldn't rely on her expertise to advise on a property's investment potential, but when it comes to closing the deal she really fights for her clients.

[Robin Simon]

Congrats, are you planning to do further improvements now that it is rented to attain the quality of tenancy/property you think would be ideal?