"Triple Threat" in Fayetteville NC

[Richard Mercado]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $118,000
Cash invested: $29,526

(3) SFH purchased as a package all on the same block in Fayetteville. I was initially looking for cashflow and didn't expect much appreciation, however they have nearly tripled in value and are still cashflowing really well.

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

We were initially looking for cashflow and didn't expect much appreciation, however the properties have nearly tripled in value and are still cash flowing really well.

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

Found this deal through my friends at Five Pillars in Fayetteville. It was essentially a wholesale deal.

How did you finance this deal?

Purchased with all cash. With the low entry price cash made sense. It would have been a challenge getting (3) separate loans for under $40K each at the time.

How did you add value to the deal?

Prior owner was a contractor who took excellent care of the properties so rehab was minimal, mostly cosmetic, roughly $10K per door.

What was the outcome?

The (3) properties have nearly tripled in value and are still cash flowing really well at $500/mo per door. zof course having no debt on these has really amped up the income.

Lessons learned? Challenges?

Lower cost properties tend to have a higher tenant turnover rate which has been a challenge.

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

Thankfully my friends at Alotta Properties Property Management in Fayetteville have been a huge support in filling vacancies and addressing issues as they arise.