All Forum Posts by: Jonny Provost

Investment Info:

Single-family residence buy & hold investment in Topsail.

Purchase price: $298,000
Cash invested: $15,000

My wife bought and renovated our first family residence with the intention of it being a long-term rental for us when we buy our next property. Our property is 8 minutes to Topsail Island, 45 minutes to Wilmington and 30 minutes to Camp Lejeune. We put in new floors, resurfaced the stipple ceilings, and painted all the walls and trim. We have also added french doors to the office, a paver patio outback, and some new finishes on cabinets.

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

We wanted to get under contract on a property that could bring cash flow down the road. We didn't have enough capital to get a short-term rental in our market, but the long-term market is strong here as well, so we bought our home with the intention of it becoming a long-term rental when we move out.

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

My wife and I looked for months for the right opportunity, and when this one popped up on the market, we had to be one of the first ones to see it. It is a 3 bed 2 bath and has a flex space that could be used as an office. Two factors that stood out to us was a beautiful willow tree outback and an open concept living area. This property couldn't have a better location and its charm was evident. We put a the first offer in and got the sellers to cancel weekend showings, so there was no bid war.

How did you finance this deal?

We put 3.5% down on a conventional loan. We intend to do a free refi by the end of 2024 with a better interest rate and more equity in the home.

How did you add value to the deal?

We turned a dark dingy home in a bright and airy coastal oasis.

What was the outcome?

Our house is a beautiful coastal oasis now. Our plan is to rent it out with monthly cash flow over $300 once we are able to find our next residence.

Lessons learned? Challenges?

We did most of the renovation ourselves, but there were few things we contracted out which were more expensive than we imagined. It was good to get a taste of how expensive items (ex. LVP) can be and why it's important to budget out with a buffer in mind. We also bought at high interest rates, which was painful, but the kicker was insurance costs near the coast.

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

I'd highly recommend Shaun Utterson as a lender in Wilmington.

Hi Alexander, where is the townhouse located? My wife and I are interested in becoming STR managers or co-hosts. If you want to shoot me a message, I would love to discuss more. Thanks!

 Absolutely, thanks for the tips. I have been prepping for awhile and learning a much as I can. I know time in the market is the most important thing, which is why we are trying to get started sooner than later. Now that the timing is right on our end, we want to be ready to strike when the right opportunity arrives! 

 Hi Dennis, thank you for your response. We are working with an agent that has a few STRs in the area and a house hack, which has been very helpful. I’ll have to check out that book!

 Hey Derek, I definitely get that. I know up here in Topsail and surrounding areas it has been a wild ride with people coming in from all over. My lender is working through those things with me, and I met him at the Wilmington meetup. It's great building a network of likeminded individuals that excel at different areas. Looking forward to seeing what I can learn from and maybe accomplish with Blake. We are not scared of some projects or hiring a contractor, but also not looking to put 150K into a 100K property. We have been keeping an eye on the market for a bit and have an idea of the properties we want to pursue.

 Awesome, that sounds great. Trying to build my network up and create a master list I can go to for different things now and down the road.

 Hi Steven, I met a great lender at a meetup here in Wilmington and he's helped a lot. With the capital we have, we may shoot to do a 5% conventional if we can. Still investigating our options though. And yes, I love the potential of a house hack and having two income sources once we move out to get more cash to reinvest.

Hey Blake, thanks for reaching out. I have been going to the Surf City meetup for a while and someone there invited me to the Wilmington one. I went for the first time in December but missed the January one. Hope to be back for the February meetup.

I'd love to connect sometime and share some ideas. We have an agent helping us with our primary search, but once that gets settled, I want to be ready to get that investment property and figure out financing. I don't know much about off-market stuff, so I'd love to learn.

 Hi Tiffany, thanks for reaching out. I will shoot you a message.

Hello, my wife and I live in Topsail and we are looking to buy our first home in the greater Wilmington area. We are looking at duplexes or homes with ADU's, or for a property we can live in and turn into a STR after a year. We got pre-approved a few days ago and are looking at properties from Ocean Isle up through Topsail. Interested in any potential deals but also want to find a second property this year with creative financing. My goal is to have a primary and a full-time rental by the end of the year. Any tips for house hacking, buying a first home, financing, or words of encouragement for rookies is welcome. Thank you!