First investment property

[Aidan Mulligan]

Investment Info:

Two bedroom, one bathroom, 932 SF, single family home in Kings Mountain, NC. A suburb of Charlotte, NC (30 minutes driving)

Purchase price: $49,900
Cash invested: $14,472

After graduating one year and one month ago I have completed my first deal. The first few months I spent paying down some debt and saving what I could then in February when I found BP on iTunes I kicked it into high gear and made it my goal to complete a deal before September. 

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

I really wanted to get into the whole house hacking, duplex, triplex, type situation. This wasn't really the best option for me because I was tied into a lease of my own with a friend from college and I didn't want to just leave him holding the bill. I then started looking into SFR specifically looking for houses that needed minor repair and hopefully get it at a discount.

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

I found this house sitting on Zillow and scheduled a showing with the realtor. By this time I had my own spreadsheet to estimate repairs so after walking around the property for about 45 minutes I had a pretty good idea what I wanted to offer. I told the realtor I was going to look over my notes and I submitted an offer later that night. After about a week I had no response so I texted the realtor and asked him for an update. He told me they were still mulling it over but then two days later I got an accept response. After the inspection the seller agreed to handle $1,200 worth of repairs.

How did you finance this deal?

20% down payment conventional loan. It took me awhile to find a bank that would lend at that purchase price but after some calling around I was able to get in touch with a bank who would.

How did you add value to the deal?

There is economic development coming through the area so I feel good about natural appreciation. In lieu of that I do plan on updating the floors, providing better landscaping, and possibly some floorpan changes.

What was the outcome?

Closed today and immediately started with the minor repairs. I hope to have it on the market in two weeks for $700/Month.

Lessons learned? Challenges?

Never take no for an answer. I heard no so many times through this process from realtors, banks, and other investors. There is always some way to solve a problem. Second lesson, spend the $50 on a termite inspection, best $50 I ever spent.

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

Joseph Bilodeau from Suntrust Bank (Salisbury, NC Branch)

Chris Jolly from Jolly Realty (Kings Mountain, NC)

Jonathan Dyer from Outlook Home Inspection (Kings Mountain, NC)

All great assets and very patient with a new investor.