Single Family Rental Purchase Near Greensboro Coliseum

[John Doss]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $93,000
Cash invested: $53,600

This property was being sold by a wholesaler near the Greensboro coliseum. It was owner-occupied but hadn't been updated in at least 40-50 years. The floors also were very uneven - indicative of some joist/support issues underneath. It had poorly taken phone-photos on the MLS so it was passed over by most retail consumers. It provided a great opportunity for us to go ahead and purchase it under listing price.

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

This property needed a good amount of work and it was poorly marketed which is the perfect mix for a good deal. We also had the another property under contract at the time so we were looking for something else that was around 100,000 or less purchase price.

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

We found this deal on the MLS and negotiated a bit with the wholesaler that was working the deal to get it 7,000 under list price.

How did you finance this deal?

We financed this with a conventional fixed-rate 30 year loan.

How did you add value to the deal?

We did a total remodel on this property. We had the roof replaced, new insulation in the attic/crawlspace, new bathroom, kitchen cabinets, windows, floors, paint, and we had the house jacked up and reinforced where several joists had failed causing the floor to slope.

What was the outcome?

We were able to successfully rehab and turn this house into a long-term rental.

Lessons learned? Challenges?

We have a roofer that we use for all of our roofs. However, he also does total remodels for other investors. We decided to let them do some of the joist work underneath. They are fast and they are cheap but they do not have the highest quality workmanship. We ended up having our main contractor/carpenter come behind after them to fix the shoddy work they did underneath the house.

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

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