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The Davidson Colonial House is a long-term rental buy and hold property…

The Davidson Colonial House is a long-term rental buy and hold property located in Davidson, NC that was purchased below market value and renovated in order to force appreciation. We purchased this home with another 0% down VA loan after we sold our home in Colorado with every intention of making it our forever home. After living in our current residence for almost 2 years now we have been doing upgrades over time to improve the home. We were not planning on moving (AGAIN), but since the current school district is re-zoning we have decided to use our real estate investing know-how to turn our current residence into a live-in BRRRR (Buy, Rehab, Rent, Refi, Repeat) and use the money to purchase a new primary residence in a better school district while renting out our existing residence. We have done this BRRRR model before if you check out our property in Salisbury, NC.

Very similar to the Colorado scenario we were able to negotiate our purchase price down to $360,000 from an original list price of $385,500. We put in about $20,000 in upgrades to the first floor to include upgrading the kitchen and adding in quartz counter tops, subway tile with contrasting grout, opening up the main floor to an open floor plan, adding in hardwood floors, and renovating the covered porch. The home has appreciated over the years since it is located on an acre of land in the Davidson zip code. We are planning to put this home on the rental market soon so check back in for more information.

We recently refinanced the home to a very low rate so our mortgage is very affordable. We hope that the improvements we have done plus the appreciation of the area could get a reasonable rental rate. Our goal is to have a monthly cash flow, gain equity overtime, capitalize on the quick appreciation for the area, and avoid the capital gains tax since we lived in the home when we do finally decide to sell it.

Here is a break down of the numbers for you geeks (like me) out there:

• Purchase price – $360,000 (negotiated down from original $385,500 list price)
• $20,000 in upgrades we did for the main floor
• Monthly rent cash flow – As of 4/1/2020 we have tenants on a 2 year lease for $2300 per month. We are cash flowing $150 per month after property management fees.

UPDATE: 3/26/21

We recently refinanced this property so that we were able to lower our monthly mortgage payments. Our new monthly cash flow is $343 per month and the property has significantly appreciated with the hot Charlotte housing market.

Final sell price – TBD

Rental Photos