Single Family Home - Raleigh NC

[Justin Kay]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $155,000
Cash invested: $20,000
Sale price: $211,000

Purchase of a single family home in Raleigh, NC while in college, with the intention of renting it out after college. Me and another individual invested in the home, and held onto it for roughly 11 years. We sold it to the (then) current tenant, primarily due to tensions between the partners.

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

Location, timing, and price.

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

Through a friend, and negotiated it ourselves.

How did you finance this deal?

Private loan.

How did you add value to the deal?

Management of the rental, capital for upfit and repairs.

What was the outcome?

The home sold 11 years later.

Lessons learned? Challenges?

Roles of the partners that invested weren't clearly defined. I also would have spent more capital to upfit the property more, seeking a higher rental income.