First Rental Property - October 2020...Just the start!

[Zachary Rymarcsuk]

Investment Info:

Single-family residence buy & hold investment in Fayetteville.

Purchase price: $61,000
Cash invested: $22,000

- Brick 3/1 SFH
- 1100sqft
- Built in 1954
- Located in Fayetteville, NC

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

Market is great for cash flow potential

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

I was looking at 2 properties with my realtor and we happened to pass this FSBO in between the two. My realtor was proactive by calling to inquire for me, then told me to guess how much they wanted. My guess was high, but he agreed it was worth the number I guessed, so we made an offer to buy AS-IS. In between our initial walk through and the inspection, the package HVAC unit went out and the seller graciously agreed to take half of that replacement cost off the purchase price!

How did you finance this deal?

Conventional fixed-rate mortgage with 25% down

How did you add value to the deal?

- Had package HVAC unit replaced the day after closing
- Installed new ceiling fans in each bedroom
- Installed new vent fan above stove

What was the outcome?

- Completed all rehab/repair items within a week of closing
- Had tenant sign lease and move in within 2 weeks of closing
- Currently cash flowing just under $300/mo

Lessons learned? Challenges?

- Appraisers are reluctant to accept jobs in areas where there are few comps to compare to, so must either request appraisal early if in similar type of area or be prepared to pay more than normal as incentive to have appraisal completed on time
- Have separate bank account already set up when preparing to make an offer on any property, so that all financials pertaining to that property are routed through the same account from the start, making things easier come tax time