High-Performing Townhouse Rental in Charlotte's Historic Fourth Ward

[Mitchell Coles]

Investment Info:

Single-family residence buy & hold investment in Charlotte.

Located in the historic 4th Ward neighborhood of Charlotte, this townhouse at North Poplar Street is part of the desirable Hackberry Court. Purchased with minor updates to modernize the space, it now serves as a high-performing long-term rental property. With a long-term tenant in place for over three years, the property generates maximum rental returns in an area where townhouses are rare and highly sought after. Property values continue to rise, enhancing its investment potential.

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

I was drawn to this deal because of its prime location in Charlotte’s historic Fourth Ward, a neighborhood known for its charm and proximity to Uptown. Townhouses in this area are rare and in high demand, making it a unique opportunity for long-term rental income. The property’s potential for strong appreciation, combined with its appeal to high-quality tenants seeking modern living in a historic setting, made it an excellent addition to my portfolio.

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

I found this deal while working as the escrow officer for a closing where the wholesaler was unable to find an end buyer. When the contract fell through, I recognized the property's potential and stepped in to purchase it directly. By leveraging my knowledge of the transaction and timing, I negotiated favorable terms, securing a rare townhouse investment opportunity in Charlotte’s historic Fourth Ward.

How did you finance this deal?

I financed this deal using a combination of cash and funds from a private investor. This approach allowed me to close quickly and efficiently while maintaining flexibility to make the minor updates needed to modernize the property and position it as a high-performing long-term rental in Uptown Charlotte.

How did you add value to the deal?

I added value to the deal by completing minor modern updates, enhancing the townhouse’s appeal and marketability in the sought-after Fourth Ward neighborhood. These updates allowed me to secure a long-term tenant at maximum rental rates, generating strong cash flow. Additionally, the property’s location and its rarity as a townhouse in Uptown Charlotte further increased its value and demand, solidifying its place as a high-performing asset in my portfolio.

What was the outcome?

The outcome has been highly positive. The townhouse is now a high-performing long-term rental with the same tenant in place for over three years, generating maximum rental income for the Uptown Charlotte market. Its value has continued to appreciate in the rapidly growing Fourth Ward neighborhood, making it a reliable and profitable investment that aligns perfectly with my long-term portfolio strategy.

Lessons learned? Challenges?

Acting quickly on unique opportunities, such as stepping into a deal that falls through, can lead to valuable investments. Minor modern updates can significantly enhance rental appeal and maximize returns. Understanding the market demand for rare property types, like townhouses in Uptown Charlotte, is key to making strategic investments.