CASE STUDY

AIRPORT DUPLEX
SALISBURY, NC

This is the only property we've acquired through MLS. The listing price of $99k didn't make sense, but after talking with our agent, we discovered the owner was a burned out landlord who had no desire to continue in the rental business. Therefore, we were able to negotiate the price down to $75k. 

At the time of purchase, there was one resident paying $550 per month, but market comps were $650. We executed our framework by quickly turning the vacant unit and listing it at market rents. Both units are currently rented at $1200/mo. 

 

CHALLENGES BEFORE ACQUISITION: 

  • High Asking Price

  • Below Market Rent

  • 50% Vacancy Rate

VALUE PLAYS AFTER ACQUISITION:

  • Bought Right by Finding Motivated Seller

  • Bought Right by Negotiating a Better Deal

  • Filled Vacant Unit at Market Rents

  • Increased Rent on Existing Unit         

RESULTS AT THIS TIME:

  • Bought for $75k (Asking $99k)

  • Increased Rents from $550/mo at Acquisition to $1200/mo

  • Cash-on-Cash Returns 35%