First home in Fayetteville, NC summer 2020

[Ion M. Cerga]

Investment Info:

Single-family residence buy & hold investment in Fayetteville.

Purchase price: $83,000
Cash invested: $7,000

This is our first home. We've stated the remodeling and it still will take some time to get it completed. Plan is to get it ready within one year then put renters in and buy a new home as a primary residence.

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

I'm a real estate agent and it was no brainer that in stead of just loosing it it make more sense to use our savings and tax returns to get our own home. save in rent minimum 200$ a month, make it nice, rehabbing it a little and then get a new home within a year or so.

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

I'm a local agent and the most important thing for us was the proximity to the Cape Fear Medical Center. First is close for my wife, she's a nurse there, second our target is to rent to nursing staff, interns and medical personnel when we put this home for rent. I've checked the comps, I did a CMA and over all with a little bit of work It looked like a great deal.

How did you finance this deal?

We've got our savings, the tax returns and my buyers agency's commission for closing for a FHA loan with 3.75 down.

How did you add value to the deal?

We've painted the house just a week before moving in in July 2020. In November 2020 we replaced the carpet from Living, hallway and kitchen with LVP and we are planning to finish flooring by end of January or February.

What was the outcome?

Still work in progress, the plan is to get funds to update this home with new doors, little bit in bathrooms, the deck. refinance, take equity out for new home, rent the property and repeat.

Lessons learned? Challenges?

It's emotional and physical exhausting. Do it yourself when the funds are limited. Looking to learn more how to leverage the funds and rehabbing work load.

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

I had so far good relationships and experience working with Joseph Spell fro. Cornerstone Home Lending. I've got reffered there from my colleagues from Keller Williams Fayetteville, NC and so far I'm happy with his help and guidance throughout the process.