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:
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High Asking Price
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Below Market Rent
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50% Vacancy Rate
VALUE PLAYS AFTER ACQUISITION:
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Bought Right by Finding Motivated Seller
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Bought Right by Negotiating a Better Deal
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Filled Vacant Unit at Market Rents
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Increased Rent on Existing Unit
RESULTS AT THIS TIME:
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Bought for $75k (Asking $99k)
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Increased Rents from $550/mo at Acquisition to $1200/mo
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Cash-on-Cash Returns 35%