Long-Term Rental Near Future Casino Development in Bessemer City, NC

[Mitchell Coles]

Investment Info:

Single-family residence buy & hold investment in Bessemer City.

A single-family home in Bessemer City, NC, purchased in 2019 for mid-level renovations. The property was acquired with the long-term vision of capitalizing on the nearby development of a casino, expected to attract workers and residents. While renovations faced delays, and initial rental demand was slower than anticipated due to construction setbacks at the casino, the property is now performing well as a long-term rental. This investment highlights adaptability and long-term growth potential.

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

I was interested in this deal because of its proximity to a planned casino development in Bessemer City, which promised to bring jobs, economic growth, and increased housing demand to the area. I saw an opportunity to position the property as a long-term rental for workers or residents relocating to be near the casino. The property’s potential for strong appreciation and steady rental income made it an attractive addition to my portfolio.

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

I found this deal through "driving for dollars" in a neighborhood near the planned casino development. Knowing the area would see increased demand for housing, I actively scouted for opportunities. When I came across this property, I approached the seller directly and negotiated a fair price based on the property's condition and potential. My strategy focused on leveraging the future growth in the area to secure a long-term investment at an advantageous price.

How did you finance this deal?

I financed this deal using a combination of cash and a private lender. This approach allowed me to close the purchase quickly and provided the flexibility to fund the mid-level renovations needed to bring the property up to rental standards. It was a strategic choice to ensure the property was ready to capitalize on the anticipated growth in the area near the planned casino development.

How did you add value to the deal?

I added value to the deal by completing mid-level renovations that enhanced the property’s functionality and appeal, making it a desirable rental option in the area. These updates positioned the home to attract tenants seeking proximity to the planned casino development. Additionally, holding the property during the ongoing area growth has allowed it to appreciate in value, further increasing its long-term potential as both a rental income source and a valuable asset in my portfolio.

What was the outcome?

The outcome has been positive overall. After completing the renovations, the property became a long-term rental and is now generating steady income. While initial challenges, such as slower-than-expected casino development and tenant delays, impacted early performance, the property has stabilized and is performing well. Its location near the planned casino positions it for continued appreciation and strong demand, making it a solid long-term investment in my portfolio.

Lessons learned? Challenges?

Investing in properties tied to future area developments requires careful evaluation of project timelines and potential delays. Flexibility and patience are essential when external factors, like nearby construction, affect demand. Always have a contingency plan for delays in rental income or project completion. Challenges: Renovations were delayed due to contractors moving slower than anticipated.