Primary Residence Turned Long-Term Rental

[Justin Melendez]

Investment Info:

Single-family residence buy & hold investment in Raeford.

Purchase price: $239,000

This was out personal residence turned long-term buy-and-hold.

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

This property was never intended to be an investment. We purchased this property new construction and lived in the home for a few years. We have since moved out of state and decided to rent this home for some decent cash flow.

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

New construction, used realtor/builder.

How did you finance this deal?

VA Loan

How did you add value to the deal?

Just maintained it like it was my own, because it was :)

What was the outcome?

We have true cashflow of $265/month (accounting for maintenance, vacancy, capex, and management).

Lessons learned? Challenges?

This property stands to teach us a lot of lessons. It's our first property in an "A" class neighborhood. We recognize that we were able to secure rents are higher than usual prices due to increased demand and low supply. Understanding that, we need to be prepared to withstand rent reductions in the future. We also made the hard decision of renting the property out instead of capitalizing on a HOT market. Our opportunities to sell this home in the near future might not be as fruitful as today.

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

Joy Cooper, Caviness and Cates Home Builders