I hope the "first one is free" doesn't apply to REI...

[James Andrews]

Investment Info:

Single-family residence other investment in Charlotte.

Purchase price: $375,000
Cash invested: $155,000
Sale price: $417,500

SFH in high-demand, high-rent 'hood. 1924 bungalow on a picture-perfect corner lot and a 4-block walk to some of the best bars and restaurants in Charlotte. 2br/2ba, 1200sf, mid-00's updates, and high-grade appliances. It was a magnet for young, white-collar professionals, renting their first high $ place.

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

I thought the house had room to appreciate as the Lynx blue-line extension was just being finished nearby. I was cash poor and the house's demand as 1 of 3-4 like it in the whole 'hood meant vacancy risk was mitigated.

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

It was a primary converted into a rental.

How did you finance this deal?

God favors fools and drunkards. I was cash poor, knew that was a risk, but felt there was too much opportunity, and that I could use the equity I had to get out of big trouble if it went bad.

What was the outcome?

Net cashflow of $18,915, an annualized ROI of 6%.
Net profit of $33,590, an annualized ROI of 10.8%.

That's taking into account its conversion at $375,000 in 2018. 

Lessons learned? Challenges?

The art and science of tenant screening. The subjective (art) signs like written communication, friendliness, warning signs, and the objective (science) of quantifying income, credit, and rental history.

RE agents are the one helper that I'll never ***** about having to pay for.

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

Dana Burleson is THE agent for NoDa, period.