Brick ranch with easy value adds in Goldsboro, NC

[Brian Corbett]

Investment Info:

Single-family residence buy & hold investment in Goldsboro.

Purchase price: $65,000

This brick ranch is a 2 bedroom and 2 full bathroom house. At lease now it is a 2 bathroom house. Originally it was a 2/1.5 but we converted a closet into a stand up shower making it a 2 full bathroom house. We also added approximately 65 square feet to the house by closing in the porch area on the back and making it a heated/cooled laundry room. Rented it very quickly for $950/month

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

This property was found on the MLS and was listed as a estate sale and sold As-Is. The pics were terrible and some of the information wasn't listed correctly. Upon viewing it we made an offer immediately for below list price and was able to get it negotiated and closed.

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

This was an MLS deal that my agent brought to my attention. We were able to negotiate a favorable price after reviewing the remodel expense and process.

How did you finance this deal?

We used hard money to be able to pull off a fast “cash” closing. We are now in the process of doing a cash out refi with a local bank.

How did you add value to the deal?

After walking the property with our contractor, we discovered that we could convert a somewhat useless closet into a stand up shower for the half bathroom. This added tremendous value for relatively little expense. We also converted a small back porch to an enclosed space with added HVAC duct and made it into a heated and cooled laundry room for our tenants. These two additions added about $15k to the ARV of the home for only about $2k worth of expenses.

What was the outcome?

We rented this house to a military family for $950/month the first week it was available.