Lake Norman - This is going to be a homer!

[Jason Harty]

Investment Info:

Single-family residence buy & hold investment in Mooresville.

Purchase price: $740,000

Using investor contributions and a non-qm loan, we've purchased a lake front home on Lake Norman, NC. The rehab had been completed (04/01/2023) and will be launched as a STR property by tomorrow (04/07/2023)

Investment / Holding / Exit options being considered:
1: Cash-out REFI upon 1 year loan maturity and substantial bookings.
2: List for sale on NC MLS at $1,100,000 and see if there is interest in the property as an operational STR property.

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

Love the area (Mooresville, NC), saw a huge value-add potential. Taking advantage of the fear in the market for buyers/sellers and made a low offer that worked!

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

On market, sitting for 6 Mos.

How did you finance this deal?

Non-QM @ 9.25% ... UGH!

How did you add value to the deal?

Large renovation completed raising the value of the home substantially.

What was the outcome?

It's my opinion (awaiting an appraisal) that the homes new value is 1,100,000. Increasing by $210,000, over purchase appraisal of $890,000.

Lessons learned? Challenges?

- Underestimated the total time to get the reno done. I would have more help next time or hire out completely and manage construction process.
- Being a contractor is a blessing and a curse... As much as I have the skills to do ANY construction task, that isn't where my time is most valuable.
- First window order arrived damaged and incorrect specs. It was quite the hassle to get this taken care of with the vendor and I had to contact a CEO to have acceptable action taken to rectify.

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

An agent, wholesale mortgage broker, building material vendors.