LATEST PROJECT : HISTORICAL JACKSONVILLE BNB

[Chris Tarpey]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $160,000
Cash invested: $25,000

THIS PROPERTY WAS BROUGHT TO US BY A WHOLESALER WEVE DONE A FEW DEALS WITH. IT NEEDED COSMTIC UPDATES TO THE HOME THROUGHOUT (PAINT, BATH UPGRADES, LIGHTS). IT HAD BEEN MOSTLY RENOVATED, BUT VACANT FOR A FEW YEARS AND NEEDED FINISHING UP.

BUILT IN 1901 - WAS AN ORIGINAL HOME TO JACKSONVILLE NC CALLED "THE BENDER HOUSE"

3 BEDROOM 4 BATHROOMS 2300 SQFT!!!

ORIGINALLY A BED AND BREAKFAST - WE HAVE CONVERTED IT BACK TO A HISTORIC BED AND BREAKFAST AIRBNB PROPERTY (BY THE ROOM).

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

LIVING IN DOWNTOWN JACKSONVILLE, IVE ALWAYS LOVED THIS HOME. WHEN THE OPPORTUNITY CAME FOR US TO BUY IT AND RESTORE IT TO THE BED AND BREAKFAST IT ONCE WAS...WE JUMPED.

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

WE FOUND THIS DEAL THROUGH A LOCAL WHOLESALER WE HAVE DONE SOME BUSINESS WITH.

How did you finance this deal?

WE USED OUR NORMAL HARD MONEY LENDER LIMA ONE CAPITAL.

How did you add value to the deal?

WE RENOVATED THE PROPERTY (COSMETIC) AND THEN FURNISHED IT PROPERLY FOR AIRBNB!

What was the outcome?

APPRAISAL FOR ARV CAME IN AT A WHOPPING $315K!!

WE WERE ABLE TO CASH OUT REFINANCE AT 60% KEEPING A GOOD AMOUNT OF EQUITY IN THE DEAL AND STILL RECOVERING OUR CAPITAL AT CLOSING.

Lessons learned? Challenges?

THIS IS A BIG HOUSE - THIS BEING OUR 5TH BNB RENTAL WE UNDERSTOOD THE ASSIGNMENT BUT THIS PROPERTY WAS A TON OF WORK TO PROPERLY FURNISH!

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

JUST OUR WHOLESALER, LENDER AND LOCAL ATTORNEY!