Fell into owning a rental

[Zachary Burgart]

Investment Info:

Single-family residence buy & hold investment in Holly Ridge.

Purchase price: $193,000
Cash invested: $24,000

This was a home I purchased while I was in the military. When it came time to rotate and move to another state, I was underwater by about 24k. So selling wasn't an option.

I have refinanced three times since then, once into a better rate in 2012 while I still lived there, once to take it from a VA loan to an investment property loan, and once again to get a better rate after making personal connections with lenders.

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

I was unable to sell and renting has been the best 'forced' decision ever.

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

I built this house while the neighborhood was in development.

How did you finance this deal?

2010 - Conventional VA loan, 30yr/fr
2012 - Refinanced, conventional VA loan, 30yr/fr
2020 - Refinanced to an investment property, 30 yr/fr

How did you add value to the deal?

-Wood floors
-Marble counter tops
-High quality backsplash tiles
-Enlarged the back patio
-6' wooden fenced back yard

What was the outcome?

Value of house over the years -
2010 - bought at 193k
area went down in value, house appraised at 170k
2019 - House valued at 205k
2020 - House valued at 223k

Lessons learned? Challenges?

I learned how to speak with a property manager and understand their needs and how to convey my needs.

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

Property manager - SeaShore realty for long term and short term rentals.

[Zachary Burgart]

Originally posted by @Jonathan Balascsak:

@Zachary Burgart,

Nice property! I too invest in Holly Ridge. The great news is the influx of SOF personnel heading to the east coast will help with supply and demand in the area and hopefully continue to grow our appreciation! I feel as if Holly Ridge is a premium location due to driving distances to Jacksonville and Wilmington also.

Would you recommend Sea Coast for a PM? I am self managing but when I scale up I'd love to have insight in good PMs in the area.

-Jonathan

 Yes, absolutely, Charles Turner - 910-803-1360. Tell him I sent you!