Buy and Hold - Beaufort

[Justin Hankey]

Investment Info:

Single-family residence buy & hold investment in Beaufort.

Purchase price: $95,000
Cash invested: $3,500
Sale price: $145,000

Bought as a primary residence to house hack and rent out after I left the area (military). Put in mostly sweat equity over 2 years and then rented the property for 2 years.
Cash Flowed about $250 per month, and then the property began to skyrocket in value and sold it.

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

Looking for long term passive cash flow to supplement future retirement income.

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

This property was found on Zillow and we put in an offer for it a little less than asking and got accepted.

How did you finance this deal?

VA Loan

How did you add value to the deal?

Over time my dad and I put in sweat equity. We added several inches of attic insulation, replaced the aluminium windows with basic double pane vinyl, and completely gutted the kitchen with locally sourced cabinets and flooring.

What was the outcome?

The house cash flowed as soon as we started renting it out, had absolutely no vacancy time loss, and the property began to appreciate at an astronomical rate so ended up selling the property.

Lessons learned? Challenges?

VA Loans are quite a challenge for the area and I highly recommend finding a mortgage company/lender that is able to work with them specifically.

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

Yes, Buddy Brown was an amazing real estate professional and investor for the area that I can't recommend highly enough.