Investment Info:
Single-family residence buy & hold investment.
Purchase price: $240,000
Given Raleigh RE market at the time, there were multiple offers and we had to pay above asking. This property had just undergone a top-to-bottom renovation so I was confident in the value.
In hindsight, I should have spent more time learning the area and refining my expense and profit calculations. Great cash flow now, and in a transitioning area that should see quite a bit of growth over the next 10 years.
What made you interested in investing in this type of deal?
We knew that we wanted to acquire several buy & hold properties in Raleigh and the surrounding area. This happened to be in the area where several schools are located and the pool of students looking for available housing (and professionals) was fairly deep.
How did you find this deal and how did you negotiate it?
This came up on MLS on a Thursday and we bid same-day along with other competing offers. Finalized our best/final offer next day and we beat our competition.
How did you finance this deal?
Conventional 30-yr loan (likely to refinance based on current interest rates)
How did you add value to the deal?
Given the extent of the remodel, very little to do for this property. Improved landscaping, added appliances, repaired HVAC.
What was the outcome?
This has been actively signed to a two year lease so it's occupied through 2022. Will re-examine market value and assess any repairs at that time to determine next steps.
Lessons learned? Challenges?
This turned into a competitive bidding situation right away. Given that this was my first purchase, perhaps finding something less stressful would have been helpful! However, the end result is a positive one and we have a great, completely refurbished property with solid cash flow.
