My first REI closed this week! Deal breakdown
Investment Info:
Single-family residence buy & hold investment in Fayetteville, NC that I plan to LTR using a PM. This is an out of state investment.
Purchase price: $112,000
Cash invested: $27,500
The Numbers: Free Cash Flow - $296, CoC Return - 12.94%
Contributors: My agent - Dan DiFilippo
Dan DiFilippo | BiggerPockets
What made you interested in investing in this type of deal?
After doing some research, I decided that the SFH market in Fayetteville was a great opportunity for my buy and hold strategy. The cost to entry is lower than my local market and the rental market should remain fairly stable because of the base nearby.
How did you find this deal and how did you negotiate it?
My agent, Dan DiFilippo with Five Pillars Realty helped me find this deal. It was on the MLS and was a flip that someone else had already completed so it was basically rent ready. Because of the competitive market, I offered $10,000 over asking w/ the seller paying 2% of closing costs (there were multiple bids). They countered with a lesser contract amount and 0 towards closing costs. Contract price of $112,000. It appraised at $113,000.
How did you finance this deal?
Conventional financing, 20% down payment, 3% interest rate.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes. My Agent Dan was excellent as well as my lender, Carolina Arango with Resource Financial. I'm also working with a local PM that I think will be great. She has been a great resource thus far.