Charleston SC - Buy/Hold or BRRRR
First deal. One unit within a 1-story brick 4-plex. 3 bed/1 bath. Owner-occupied for 10 years. She is moving out of town to be near kids. Neighborhood is about half owners, half renters. Low income, but exteriors are well-kept and personalized. List price was 70K. Agent recommended 55K offer and seller took it. I tried to negotiate down after inspection, but she wouldn't budge. Turnaround is mostly cosmetic anyway. Will need a new stove, fixtures, paint, minor floor repair. 3K and 30 days if no surprises. Should rent for $900, maybe a little more. Expected cash flow $200+.
Because I don't have 2-year income history, I'm financing this myself against a brokerage account. The good news is the rate is competitive, there are no points or mortgage insurance, and I can act quickly. The bad news is it ties up cash, lowers my ROI, and is not a sustainable financing strategy. With a couple of deals under my belt, however, I hope I can transition to OPM.
Bought it with the intent to hold for cash flow, but an ARV over 80K would be tempting to either flip or re-fi. Closing scheduled for 6/20/16.
Stay tuned.