All Forum Posts by: Steven N.

Investment Info:

Single-family residence other investment in Hope Mills.

Purchase price: $44,000
Cash invested: $74,000

Contributors:
Bryant Tumbelekis

Third BRRR deal completed in the Fayetteville/Hope Mills market.
$74k investment (purchase price, plus repairs and holding costs, etc), 12 week demo/repairs.
$93K-$115K ARV range based on comps
$950/mo projected rent.

The % cash on cash returns would be infinite with $100K appraisal.

Unfortunately the appraisal came in a bit low at $82k. No idea why but appraisers are getting tougher...however we have the house rented for $950/mo, and the cash-on-cash returns are still over 20%.

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

Potential for strong returns using the BRRR model. The house was in bad shape when we got it and needed major repairs. Replaced the HVAC & roof, black mold removal, and cosmetics.

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

On the MLS through agent.

How did you finance this deal?

Cash

How did you add value to the deal?

Repairs and hardwood floor refinishing, kitchen remodel.

What was the outcome?

Created some equity (not as much as planned), but still looks like it will be a strong rental with low maintanence

Lessons learned? Challenges?

Another reminder not to trust or bank on the appraisal coming in where you think it will, the appraisers have continued to use poor comparables.

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

Bryant Tumblekis is the third agent I've used, and the best one... He knows what he is talking about and easy to reach.

Investment Info:

Single-family residence other investment in Hope Mills.

Purchase price: $44,000
Cash invested: $74,000

Contributors:
Bryant Tumbelekis

Third BRRR deal completed in the Fayetteville/Hope Mills market.
$74k investment (purchase price, plus repairs and holding costs, etc), 12 week demo/repairs.
$93K-$115K ARV range based on comparables.
$950/mo projected rent.

The % cash on cash returns would be infinite with an $100K appraisal.

Unfortunately the appraisal came in a bit low at $82k. No idea why but appraisers are getting tougher...however we have the house rented for $950/mo, and the cash-on-cash returns are still over 20%.

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

Potential for strong returns using the BRRR model. The house was in bad shape when we got it and needed major repairs. Replaced the HVAC & roof, black mold removal, and cosmetics.

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

On the MLS through agent.

How did you finance this deal?

Cash

How did you add value to the deal?

Repairs and hardwood floor refinishing, kitchen remodel.

What was the outcome?

Created some equity (not as much as planned), but still looks like it will be a strong rental with low maintanence

Lessons learned? Challenges?

Another reminder not to trust or bank on the appraisal coming in where you think it will, the appraisers have continued to use poor comparables.

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

Bryant Tumblekis is the third agent I've used, and the best one... He knows what he is talking about and easy to reach.

@Jacob Humiston For market research:

https://www.realtor.com/research/top-housing-markets-2020/ 

https://www.charlestonrealtors.com/marketreports/

@Parker Stiles I'm an agent and investor in Charleston. It is is a good place to invest for appreciation, we were just named one of the top 10 markets for 2020 by Realtor.com. I've lived here 6 years and the growth has been incredible since I arrived.  Homes here work well for house hacks and airbnb rentals. West Ashley and James Island are my favorite parts of town.  There are some areas where homes will cash flow well too, like areas in North Charleston and Ladson/Summerville.  i  I hope this helps, reach out anytime. 

@peytonholtz Can you walk us through your numbers? I read it that you have $93549 into the property and you think it'll appraise for $98000? Maybe I read it wrong...

Nice job! Do you also do BRRRRs and keep some properties as rentals?

Hi Lauren, I also own a home in Charleston and I invest in Charleston, Columbia, and Fayetteville North Carolina, I'm on my fourth BRRRR, also Done a few turn key. BRRRR is harder to do here than in lower price markets but may work in certain areas In my opinion. Let me know how I can help you, thanks

steve

Yes sir.

@Matthew Horstmyer there are Plenty of good house hacking options around here, single family and duplexes. Brrr will prob only work if you're getting private money or hard money to buy in cash. I wouldnt start that way personally.