Cape Cottages, Wilmington NC Buy and Hold Condo

[Account Closed]

Investment Info:

Single-family residence buy & hold investment in Wilmington.

Purchase price: $89,000
Cash invested: $8,000

Cape Cottages 3/2 Condo that's in a great location for the local university and community college.

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

I had just graduated college and noticed that if I had a mortgage, I'd be paying less than rent. I wanted to take advantage of that and my roommates moved in with me. It was a good deal for everybody.

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

MLS. Listed at $85k, I put in a full price offer and got in a bidding war. Ended up coming back at $89k with $5k in closing from the seller. They accepted here.

How did you finance this deal?

Homepath at 5.5%. 10% down to drop PMI

How did you add value to the deal?

Paint and laminate flooring

What was the outcome?

Lived in for 4 years with roommates, then moved out and rented at $900 initially. Current rent is at $1200 with the same tenants, no turnover yet.

Lessons learned? Challenges?

Negotiating with tenants. I wanted to fix everything for them and they somewhat took advantage. This has made me better at drawing the line on what's reasonable and what isn't.

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

Joel Sheesley, Realtor