All Forum Posts by: Meghan McGill

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*This link comes directly from our calculators, based on information input by the member who posted.

This was my first real estate investment deal. I closed in January. 

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*This link comes directly from our calculators, based on information input by the member who posted.

This property went pending almost as soon as it hit the market. 

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*This link comes directly from our calculators, based on information input by the member who posted.

This property is already pending, but I wanted to take advantage of the All you can analyze weekend to see what it's potential might be. My numbers are assuming asking price and no repairs needed. 

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*This link comes directly from our calculators, based on information input by the member who posted.

This is a 2 bed/1 bath that is listed on the MLS. However, it has 2,000+ sqft so it could possibly be turned into a 3/2 for better rental income. It looks like it needs a new roof, so I analyzed it with a lower than asking price. Not sure that would fly in this market. However, it is a family home and they might be motivated to sell.

@Eduardo Conde

I always use Weeks & Irvine LLC for my closings. They also come highly recommended by my REA. I just started working with Steve Nettles at Tax Pros Plus for my CPA. Good luck on your next investment!

@Kyle Smith

I think a combination would be good for the long run. You want to keep that cabin feel while making it feel modern.

@Dmitriy Fomichenko Thank you! I'm excited to get this one rented. The first is rented already. Closed in January and the tenant moved in a couple weeks later. I've definitely learned some lessons about the offer and contract process along the way that will only make me better going forward. 

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: $120,120
Cash invested: $31,542
The Numbers: Free Cash Flow - $300, CoC Return - 11.44%

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. The only catch was that it was still on a septic tank despite the availability of city sewer. I have decided to go ahead and get it connected now to avoid having to do it in an emergent situation down the road and because the costs will only increase over time. I have included this in my numbers mentioned above. Because of the competitive market, I offered over asking w/ the seller paying 2% of closing costs (there were multiple bids). Included in my offer was a clause that I would pay up to $5,000 over appraisal, but capped at my offer price. I knew that even with the extra cash, the numbers still made sense. I believe this is what made my offer stand out. Contract price of $120,120. It appraised at $116,000.

How did you finance this deal?

Conventional financing, 20% down payment, 3% interest rate. Plus the additional $4,000 cash needed to bridge the gap between appraisal and contract price. 

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. The deed was recorded a week ago and she already has a potential tenant lined up. The sewer gets connected next week. 

@Prashanth Rawla

I agree with Dan. I found him on BiggerPockets and partnered with him to find my first 2 properties. His team specializes in working with investors so he was great at providing referrals for every other part of the process. My advice is to find an investor friendly agent. Someone that invests themselves or works with a lot of investors. @Dan DiFilippo was invaluable in my search for my first properties & I plan to work with him in the future. So far, my experience with each of the people he has referred me to has been great.

@Zachary Rymarcsuk I'm using Ace Property Management. Amy Reynolds came highly recommended by my agent and so far, she has been great to work with. Very responsive.