All Forum Posts by: Matthew Manus

Hey guys, I know this is subjective but I'm interested in hearing others insights on a deal I have lined up.

I've been in negotiation on this property for about 2 weeks, and now we're at a point where we have agreed on terms and normally I'd be all for signing the purchase agreement, however I'm concerned over current events. 

About the property:

High-end mountain house in Brevard, NC located in gated golf-course community, home located on the lake. Community has clubhouse, pool, hiking trails, etc. Most homes selling between 350k-500k. 

Deal Numbers:

Property as-is worth ~415k

Purchasing for 360k

Taking 295k 1st position loan "subject to"

Seller is financing 30k in 2nd position 

Downpayment of 35k at closing 

Here's the sticking point - I've analyzed this as a AirBnb/VRBO rental and based on past rents in peak season, the property gets $300-$350/night. For 335 available nights/year, at conservative $275/night, 60% occupancy, net operating income is 39.4k, with cash after debt = 12k...about 11% cap rate. I've included utilities, management, HOA, Cap Ex, maintenance, etc. On paper these numbers look good, however there is obvious concern over people vacationing over the next few months, when the overhead will be approximately $2300/month.

Another exit strategy would be to sell it and make a small profit, but I also have concern over people being in the market for vacation rentals at a time like this. 

I'm happy with the deal I've negotiated but feeling reluctant to pull the trigger on this one. I'm curious to what other vacation rental owners or even those currently weighing a similar are thinking? Thanks for any insights!

Thanks @Gil Roebuck, just sent you a message. Let me know if you have any questions or feedback on the deal. 

I've got an off market wholesale deal available in Newton, NC (meeting rehab 70% rule and rental 1% rule)- looking to connect with cash buyers in Newton / Conover / Hickory NC areas. Just reach out and I can provide all the details. Thanks!

@Lewis Anderson & @Bernard S...thanks for your interest, however this property has sold. 

This property has sold. 

This property has sold

1247 S Marietta Street Gastonia, NC 28054

2 Beds / 1 Bath - 1012 square feet - 0.28 acres

Currently vacant (do not go on property without scheduled appointment)

Rent: $650-$700/month

Asking Price: $30,000 or best offer

Repairs:

HVAC replacement

Roof replacement

Paint

Refinish existing hardwoods or install new flooring (3 rooms)

Notes:

Vinyl siding

Updated PEX plumbing lines

Hot water heater less than 5 years old

Sewer lateral updated to PVC piping

Small accessory building in back

Deal Details:

Buyer agrees to pay all closing costs

Closing with Harry Marsh Law

Must close within 14 days (April 4th)

View Pictures Here

Contact:

Email: [email protected]

Buy & hold investment opportunity
Asking 45,500 OBO - Cash Buyers Only

Brick ranch home located off Ansonville-Polkton Road
Built 1950
1458 Square Feet 0.46 Acres
Tax Value $62,600
3 Bedroom / 1 Bath
Rent (as-is condition): 650/month - with improvements may get 675-700/month

Well-kept house is move-in ready, however buyer could likely increase rent with following updates:

Paint, carpet, new appliances, baseboard heating repairs, new steps at back door.

New roof just installed, new septic piping just installed, laundry room recently insulated

Sales price accounts for $6500 in repairs by buyer to still maintain approximate 9.75% cash on cash ROI and 11.38% Cap Rate, also accounting for buyer closing costs. (All in $53,200 with purchase, repairs, closing). See analysis pic for details.

For more photos:

Photo Link

If interested, please contact me for more info and access. Property is occupied, do not go on property without contacting me first. Cash purchase or hard money. No owner financing, Must close in 2-3 weeks.

I highly recommend Harry Marsh..many investors and wholesalers in Charlotte use him to close deals. He's an investor as well so he understands various deal structures..subject to, assignments, double close, etc.

@Justin Smith, congrats on getting into real estate investing..I'm located here in Charlotte. Just as fellow members noted above, Hobby Millionaire and Metrolina REIA are a great start...there's also the J Parker meet up, the Charlotte REIA, and investing in the trenches with Scott Patterson...also you can go on Facebook and find the Hobby Millionaire page and the Charlotte Real Estate Investors page..you can see who's doing what in the local market. I'm a full time investor performing rehabs and new builds, now ramping up marketing to find better deals. Shoot me a message if you want to meet up sometime and I'll share my lessons learned!