First investment in Wilmington NC

[Ed Grogan]

Investment Info:

Single-family residence buy & hold investment in Wilmington.

Purchase price: $111,775

Cash invested: $143,800

In the National and City of Wilmington historic district this house is being repaired, bathrooms renovated, shower installed on first floor, painted, and had new windows installed. Hardwood floors, high ceilings, 6.5 rooms providing 3-4 bedrooms, currently inactive fire place in 5 of the rooms, and rocking chair front porch. Ideal starter home for young roommates group easy walk to Front Street, Brooklyn Arts building and short bus ride to UNCW.

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

The classic look.
https://www.zillow.com/homedetails/720-Red-Cross-St-Wilmington-NC-28401/54300522_zpid/

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

Through dedicated buyers agent

How did you finance this deal?

Paid cash and will finance if I do not sell after rehab and keep as rental

How did you add value to the deal?

The house was run down after being used as an illegal single room occupancy. Seller made a few grand after payoff. I am a stickler about old electric and had alot of rewiring done since 60% of the 3 prong outlets did not have a connected ground.

What was the outcome?

TBD

Lessons learned? Challenges?

I broke the 1st rule of contractor selection and did not do due diligence and let the contractor who does have legit medical problems put me 4 months out of completion. New contractor Has filed permits and is moving along at a satisfactory pace.

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

My RE was good but not someone who really understands what an investor is looking for. A second rule I broke was letting emotion put me $5k over my MAO don't let emotion get in the way with price or those you employ..