SF Rental in High Point, NC
Investment Info:
Single-family residence buy & hold investment in High Point.
Purchase price: $130,000
3/2 in High Point NC. Built in 2005. HOA community. No majors repairs needed. House was last updated in 2005.
What made you interested in investing in this type of deal?
I liked the area (Northern High Point, NC) and I was ready to purchase another rental property.
How did you find this deal and how did you negotiate it?
I was walking by one day and the owner started talking to me. He told me he lost his job due to COVID, his wife passed away, and he was moving to Pennsylvania which is where his family lives. He mentioned he was going to sell it so I offered to purchase it. He determined the price, which I knew was 20k-30k undervalue. I did not negotiate with him.
How did you finance this deal?
We put 30% of the purchase price down on a 7/1 ARM.
How did you add value to the deal?
We cleaned it and made some very minor repairs.
What was the outcome?
We plan on renting it out for $1250/month.
Lessons learned? Challenges?
If I could do it over, I would have used a hard money lendor to purchase the home and then refinanced it with a local bank once it was rented. I believe this would have allowed me to purchase the property with less money down.