First Rental BRRRR in North Carolina

[Darren Tsai]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $70,000
Cash invested: $40,000

This was a buy and hold acquisition in North Carolina. I actually found the deal from a wholesaler on biggerpockets. I met him on a Sunday and we were under contract on Monday!

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

I had been analyzing deals for about 2 years and getting really into analysis paralysis waiting for the right deal. I finally found the right deal & took action.

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

Found the wholesaler on biggerpockets, sent him my criteria, he shared this property. I ran the numbers & put it on contract the next day.

How did you finance this deal?

Personal savings ($30,000) and a personal loan of $40,000 from my local credit union.

How did you add value to the deal?

I bought it for $70,000 and knew there would be some renovations that would bump the ARV to around $120,000.

What was the outcome?

The outcome was the numbers penciled & the transaction went smoothly. I took a risk by taking the property with tenants who were paying well below market. However, they stayed during renovations & were willing to stay even after we raised rents.

Lessons learned? Challenges?

I spent a long time sharpening my blade before chopping down the tree. I knew this was a good deal almost immediately when I saw it. This gave me confidence to take action. Biggest challenge was interviewing and picking the right contractor & property management.