First Fayetteville NC Property

[Bruce Martin]

Investment Info:

Single-family residence buy & hold investment in Hope Mills.

Purchase price: $113,000
Cash invested: $121,000

This is my first investment property in the Fayetteville area. It is a 3 bedroom / 2.5 bath that's approximately 1450 sq. ft. It was a foreclosure and only required $8,000 in renovations to have it rent ready.

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

The ease of finding distressed properties that will cash flow. I'm particularly drawn to SFH's because they are easier to sell as ordinary people buy them, not only investors.

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

It was found through my realtor. Minimal negotiations because it was a foreclosure. They asked for the highest and best offer by a certain time.

How did you finance this deal?

Cash. I'm looking to get a mortgage or a line of credit on it.

How did you add value to the deal?

Minor renovations to include flooring and painting made the property much nicer. I also painted the home to keep the renovation costs lower. Comps have been in the $140k-$150k range so I like to think I created about $20k in equity.

What was the outcome?

Within 3 weeks of closing I had a cash-flowing property with tenants already placed.

Lessons learned? Challenges?

Overall, it went really smooth with no major hiccups. This was my first in this market so there were a lot of unknowns with the recommended contractor and property management but it went well and they have impressed me thus far.