All Forum Posts by: Adrian Barbosa

Awesome, a steady demand in the area however becoming fairly saturated with other investors converting units into STR's.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $169,000
Cash invested: $12,000

4 bed, 3 bath single family residence located close to Fort Bragg in Fayetteville, NC. Operating as a short term rental since March or 2022.

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

A steady short term rental market in the Fayetteville, NC/Fort Bragg region. With prior experience doing SFR STR's in the area along with partners.

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

Found this deal on the MLS and negotiated leveraging my agents local market understanding & experience.

How did you finance this deal?

Using a VA loan, I was able to close with all in costs just over $2k. I occupied the homes ADU (converted garage, 1Bed/1Bath studio) while the main part of the home operated well as a short term rental.

How did you add value to the deal?

Value was added to this deal through small repairs and mild renovation in the homes studio (ADU) space. Along with furnishing the entire property to become the welcoming short term rental that it is today.

What was the outcome?

The property still operates as a single short term rental. The studio was added to the entire listing when I moved out of the home.

Lessons learned? Challenges?

I learned a lot about setting realistic timelines, and to be conservative doing so in the future. Also how extensive of a process selecting, ordering/purchasing, and furnishing an entire home can be while operating alone.

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

Yes, I'd encourage anyone looking to get started or continuing to invest in the Fayetteville, NC area to reach out. I'd be more than happy to connect others with my rockstar team who made this deal possible!

Hey Patrick,

Great post & seems to be a solid deal there. Love the idea of improving the neighborhood, thats an awesome long term plan to add value to the property and surrounding area. I'm sure with the supportive community of property owners and investors in Fayetteville that you'll be able to accomplish that. 

Hello BP community!

As I move forward to acquire my first rental in the coming months, I'm seeking creative ways to fund this deal. I intend to utilize the BRRRR method with all in costs (acquisition+rehab+holding) to be between 60-90k. Hard money and a line of credit are my top choices as I have more than 50% of this budget saved, but need to fill this monetary gap while leaving enough of my own cash in reserves. With all of the uncertainty that COVID-19 has brought during this time, I understand that many financial institutions have tightened their lending criteria to those looking to obtain such financing. This coming week I'm going to speak with some different lenders offering these products.

Has anyone been successful in opening new unsecured lines of credit or obtaining hard money loans to fund recent projects? I’d be happy to hear stories of recent deals performed using either of these or other financing methods. Gladly open to any and all feedback/suggestions regarding my situation.

Thanks!

Hello everyone! 

As I move towards acquiring my first rental property, I'm looking to establish a solid team of likeminded "rockstars" in the REI industry. Specifically a property manager, contractor and lender all to support a prospective BRRRR deal.

I've been using this downtime to solidify my investing plan, expand my knowledge of the market/industry and now beginning to form meaningful business relationships.

Those with experience investing in Fayetteville or starting out like myself, feel free to reach out. I'd be happy to help and provide value in any way. I'm eagerly open to any suggestions, feedback and advice. 

Let's connect and talk real estate! 

Thanks Robert! I've been using this downtime to further educate myself analyze deals and begin formulating my plan to get into the market. It's great to receive feedback from other experienced investors like yourself. 

Done! Looking forward to seeing the results 

Given the current situation and economic downturn that could follow and inevitably affect real estate markets, I can clearly see why you would advise a beginner such as myself to proceed with caution or even shy away from jumping into real estate at this time. I will take that into great consideration along with understanding that realtors have a financial motive to get a client into a house, that said I don’t plan on allowing this pandemic to postpone beginning my investing career.

Although I have yet to purchase an investment property of my own, entering into what could soon become a recession does not intimidate me. I’m certain that through careful planning, market selection, understanding of the intended market as well as it's economic foundation, a solid strategy to include multiple exit strategies, acquiring a great deal, implementing and exercising effective business systems, working with mentors and other investors I’ll be successful. Not only will I be successful at navigating through such rough periods, but I will take the time to learn, grow, and thrive as I do when faced with any other challenges life throws at me.

However I’m curious what yourself or anyone else may think about a newbie jumping into the market amidst this pandemic or even during recession for that matter? 

Thank you for the tips and kind words @Craig Curelop!  Consistency really is the key, and I'm certain through applying all that you mentioned I'll be more than ready to acquire that first deal in "NO TIME!"

@Shelby (Osborne) Johnson thanks for reaching out and the help would be greatly valued! I'm excited to begin communicating with others in the industry, and seeing that you and your team specialize in working with investors is a huge plus! 

Haha @Alexander Felice! I'll keep that in mind and be sure to connect with plenty of others in Fayetteville, although the idea of a cult doesn't sound too bad right about now.. lol

@Andrea Weule I'll haven't yet, but I'll surely look into any active local REI facebook groups and online meetups. And absolutely, I plan to waste no time amidst this chaos and begin building that "solid power team"!

@Dmitriy Fomichenko Appreciate the warm welcome and recommendations!