First Rental BRRRR in North Carolina
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $70,000
Cash invested: $40,000
This was a buy and hold acquisition in North Carolina. I actually found the deal from a wholesaler on biggerpockets. I met him on a Sunday and we were under contract on Monday!
What made you interested in investing in this type of deal?
I had been analyzing deals for about 2 years and getting really into analysis paralysis waiting for the right deal. I finally found the right deal & took action.
How did you find this deal and how did you negotiate it?
Found the wholesaler on biggerpockets, sent him my criteria, he shared this property. I ran the numbers & put it on contract the next day.
How did you finance this deal?
Personal savings ($30,000) and a personal loan of $40,000 from my local credit union.
How did you add value to the deal?
I bought it for $70,000 and knew there would be some renovations that would bump the ARV to around $120,000.
What was the outcome?
The outcome was the numbers penciled & the transaction went smoothly. I took a risk by taking the property with tenants who were paying well below market. However, they stayed during renovations & were willing to stay even after we raised rents.
Lessons learned? Challenges?
I spent a long time sharpening my blade before chopping down the tree. I knew this was a good deal almost immediately when I saw it. This gave me confidence to take action. Biggest challenge was interviewing and picking the right contractor & property management.