Great investment BRRRR property in Goldsboro, NC

[Brian Corbett]

Investment Info:

Single-family residence buy & hold investment in Goldsboro.

Purchase price: $25,000
Cash invested: $9,000

This is a BRRRR deal that was part of a 6 property portfolio that I purchased. The current market value of the property is $60,000 in today's market. This is a 2 bedroom/1 bath single family house that we have rented with a new tenant for $750/month.
We used hard money to purchase the property and are now refinancing it through a cash out refi loan for long term permanent financing.

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

This little house is in the downtown area of Goldsboro, NC which has provided us great rental leads. A two bedroom house is not the “ideal” property in many markets, but with this being a military town where Seymour Johnson Air Force Base is located we have many service people that are single or want/have one roommate.

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

A friend of a friend owned 6 properties and needed to sell them all due to divorce and aging parents that wanted to travel. All but two of the properties were already rented.

How did you finance this deal?

We used private/hard money to finance this and now working with a local bank on doing long term financing through the cash-out refi option.

How did you add value to the deal?

We were able to remodel the kitchen with tile backsplash, granite tops, and new appliances. We also added a laundry area inside the home for minimal cost but a huge draw for potential tenants. Also, dressed up the bathroom with a new tub surround, vanity, and lighting throughout.

What was the outcome?

We were able to rent this property for $750/month the first day on the market!

Lessons learned? Challenges?

The biggest lesson here was the impact of COVID-19 on the long term financing of the property. I had planned on having that completed by now but the banks pumped the brakes on any cash outs until they figured out how the market was going to hold up. We are now in process of completing the refi.