We live in one of those neighborhoods where houses sometimes sell just by letting the neighbors know that you’re moving. People with young children especially want to live here, because it’s in the best school system in South Carolina, it’s relatively affordable (by Mount Pleasant standards), and it’s a safe neighborhood where kids can ride their bikes with no worries (there’s only one way in and out of Creekside, so there’s not a lot of traffic).
The houses in Creekside are nothing special – 1970s and 1980s construction, low ceilings, few open floor plans like people want these days, and many haven’t been updated since they were built. People want to live here in spite of the homes.
Our “desirable” neighborhood, along with the improving market and the fact that we’ve done a ton of updates, making our house move-in ready, all contributed to a successful sale – we sold it by owner in two days for over asking price! Plus, it was an all-cash offer (no financing or appraisal needed) and we negotiated a lease-back option; so we’ll get the cash on August 1st when we close and can shop for a house in Nashville but still have our house to live in until the end of September.
We bought the house four years ago for $360K and put about $60K into fixing it up. The sales price was $515K, and about $15K went to the buyers’ agent. After all renovations and realtor fees, we netted about 19% in four years. Not too bad, especially during a recovering market.
In Nashville, I’d like to find a similar opportunity – a house that needs a cosmetic makeover that we can live in for three to four years and sell for a profit.
At first, my strategy was to find a multi-family property that we would live in for a year, financing it with a primary home rate, and then moving out but keeping it as a rental. I looked for about two months and couldn’t find anything that had good cash flow and was a place I’d want to live.