Assume the seller's cheap mortgage, pay only the equity gap plus commission, then run a cost-segregated short-term rental. This is the full build: 11 verified assumable listings across NC, the complete STR model with a $20K renovation budgeted in, the exact cash to get started, and the Year-1 cost-seg tax number spelled out. Built to walk through with Giann.
The pitch in one screen, on a representative $300K deal. Every number flexes with the real assumable balance once an agent confirms it — the base case below assumes a $282K balance (~94% of price), the norm for a 2020–2021 FHA/VA loan with a few years of paydown.
All-in: equity gap, commission, closing, $20K reno, furnishing, reserves.
At 32%, including bonus depreciation on the furniture & renovation too. Assumes a true STR / material participation.
Cost seg refunds ~$30K of the ~$81K — it doesn't zero out, but roughly covers your bare cost to take title.
vs. ~6.8% new-money. On $282K that's ~$650/mo of payment you never fight for.
Two distinct legal paths get you the same economic outcome — pay the seller their thin slice of equity, inherit their loan instead of getting a new one. They source from different places and carry different risk, so it's worth knowing which one you're actually doing.
Lender formally approves the transfer. You qualify with the lender (credit/income check), but you keep the seller's rate and remaining balance. Conventional loans are almost never assumable — this path only works on government-backed loans. Slower (lender processing, 60–90+ days) but clean: no due-on-sale risk, title transfers normally.
No lender involved. Deed transfers to you, seller's note (any type — conventional included) stays in the seller's name, you make the payments. Faster and far more inventory, but it triggers the loan's due-on-sale clause — the lender can call the loan, though in practice rarely does as long as payments are current. Needs an attorney, usually a land trust, and lender-agnostic insurance (not a standard HO-3).
The full stack of what it costs to take one of these down and get it earning — with your $20K renovation budgeted in. Base case: $300K price, $282K assumable balance, so an $18K equity gap. Swap in the real balance per target and this recomputes.
If it's an off-market subject-to (no 6% commission) and you furnish gradually out of cash flow rather than upfront. Same asset, slower ramp.
A whole-home STR needs real furnishing money — budgeting only the $20K reno and skipping this is the #1 way these deals get underwater on day one. It's carried as its own line above on purpose.
On a $300K asset, ~$81K all-in is ~27% of value to control it fully furnished and earning — but ~$36K of that ($20K reno + $16K furniture) is invested capital that lifts revenue and depreciates, not dead closing cost. The pure cost to take title is ~$40K.
Currently-listed North Carolina properties flagged with an assumable mortgage, pulled and cross-checked against MLS today. Rates shown are Roam's reported assumable rate and the single most important number to re-confirm with each listing agent, along with the loan type and remaining balance. Sorted by rate.
| Property | Price | Beds/Ba · Sqft · Built | Assum. rate* | Market / STR read |
|---|---|---|---|---|
| 105 Courie Way, Jacksonville 28540 | $243,500 | 3 / 2 · 1,362 · 1999 | 2.75% | Coast (Onslow Co). Lowest rate STR-permissible w/ registration; military/relocation demand, underwrite conservatively. |
| 5356 Austin Knoll Ct, Charlotte 28269 | $250,000 | 3 / 2.5 · 1,211 · 2020 | confirm | Charlotte. Newest build 2020 vintage = prime low-rate era. Townhouse — check HOA for STR ban first. |
| 102 Harvest Oaks Ln #59, Durham 27703 | $279,900 | 3 / 2.5 · 1,524 · 2017 | 3.0% | Triangle (Durham $159 ADR / 55% occ). End-unit TH, HOA $178/mo — verify STR rules. |
| 2001 Metacomet Way, Raleigh 27604 | $279,500 | 2 / 3 · 1,208 · 2002 | 3.25% | Triangle (Raleigh $164 ADR / 58% occ). Smaller 2BR footprint; long days-on-market — negotiate. |
| 2807 Bedfordshire Ct, Raleigh 27604 | $297,500 | 3 / 2 · 1,570 · 1996 | 3.36% | Triangle. 14+ mo on market (yellow flag — price/condition/stale MLS; verify). |
| 813 Valley Oak Dr, Greensboro 27406 | $305,000 | 3 / 2 · ~1,550 · 1994 | 4.97% | Triad ($185 ADR / 55% occ). Lowest entry price; rate still well under 6.8% market. |
| 3137 Groveshire Dr, Raleigh 27616 | $314,900 | 3 / 3 · 2,090 · 2006 | 3.1% | Triangle. Biggest Triangle footprint; single-family (no HOA STR risk). |
| 824 Dynasty Dr, Jacksonville 28546 | $320,000 | 3 / 2 · 1,518 · 2013 | 3.5% | Coast (Onslow Co). STR-permissible; military demand base. Verify 2020–22 refi produced the rate. |
| 17 Spring Oak Ct, Greensboro 27410 | $349,900 | 3 / 2 · 1,612 · — | 3.38% | Triad. Freshest listing (June 2026) = least likely to be stale. |
| 1302 Laurel Woods Dr, Gastonia 28052 | $380,000 | 3 / 2 · — · — | ~3%† | Charlotte metro. †Roam shows a blended payment that may mask the true rate — confirm carefully. |
| 202 Peaceful Orchard Dr, Hendersonville 28792 | $399,900 | 3 / 2 · 2,052 · ~2000s | 3.1% | Mountain (Henderson Co). Best STR market $189–227 ADR, and county-governed so it dodges Asheville's whole-home STR ban. |
Click any address to open the live listing (Redfin / Zillow). *Assumable rate as reported by Roam's database, not the MLS description. Treat every rate, loan type, and balance as unconfirmed until the listing agent verifies it — that's the one call that turns a row into a real deal. Two Charlotte options (Austin Knoll, Lynmont) also carried forward from the first pull.
Built on the $300K base case, with the $20K renovation reflected. Revenue uses the middle of the NC markets we pulled (whole-home 3BR: ~$175 ADR, cited below). Coastal/mountain targets run higher, Triad/Triangle a touch lower — swap the ADR and occupancy for the specific submarket once a target is chosen.
| Input | Value |
|---|---|
| Loan balance taken over | $282,000 |
| Assumed rate | 3.25% |
| Remaining term | ~25 years |
| Monthly P&I | $1,375 |
| Property tax (est., ~1.0% eff. on $300K) | $250 / mo |
| STR-endorsed landlord insurance (est.) | $180 / mo |
| Total PITI + insurance | $1,805 / mo · $21,660 / yr |
| Scenario | Occupancy | ADR | Gross Annual Revenue |
|---|---|---|---|
| Conservative | 42% | $175 | $26,830 |
| Target (well-managed, whole-home) | 55% | $175 | $35,130 |
Market ADR / occupancy we pulled: Raleigh $164 / 58%, Durham $159 / 55%, Charlotte $184 / 55%, Triad ~$185 / 55%, Wilmington $207 / 54%, Asheville–Hendersonville $189–227 / 56%. The $20K renovation is what lets a unit hold ADR and occupancy at the "target" line rather than the conservative one — under-renovated units drift toward the bottom scenario.
| Line item | Annual |
|---|---|
| Gross booking revenue | $35,130 |
| Property management (22%, if outsourced) | −$7,730 |
| Utilities (electric/water/internet/streaming) | −$4,200 |
| Supplies & consumables | −$1,200 |
| Maintenance reserve (1% of value) | −$3,000 |
| Property insurance | −$2,160 |
| Property tax | −$3,000 |
| Net Operating Income (NOI) | $13,840 |
| Debt service (P&I only) | −$16,500 |
| Pre-tax cash flow (operations only) | −$2,660 |
This is the engine of the return. Cost segregation reclassifies chunks of the building into 5-, 7-, and 15-year property, which under current law is eligible for 100% bonus depreciation — deductible in Year 1 instead of over decades. And it's not just the purchase price: the furniture and much of your $20K renovation are short-life property that also deduct in Year 1. Here's the full stack on the $300K base case.
| Step | Amount |
|---|---|
| Building basis (80% of $300K; 20% to land) | $240,000 |
| Reclassified to 5/7/15-yr property (~27.5% of building basis), 100% bonus Year 1 | ~$66,000 |
| Year-1 straight-line on remaining building basis (27.5-yr, partial year) | ~$3,500 |
| Furniture & turnkey personal property (5–7-yr, 100% bonus) | $16,000 |
| Renovation — portion reclassified to 5/15-yr + bonus (est. ~50% of $20K) | ~$10,000 |
| Total Year-1 depreciation deduction | ~$95,500 |
A deduction reduces taxable income; the cash back is the deduction times your marginal tax rate. What it can offset depends on the passive-activity analysis below.
| Marginal rate | Year-1 cash back on the ~$95,500 deduction |
|---|---|
| 24% bracket | ~$22,900 |
| 32% bracket (base-case assumption) | ~$30,600 |
| 37% bracket | ~$35,300 |
The full first-year picture on the $300K base case, at a 32% marginal rate, target STR scenario, with the cost-seg shield qualifying against active income.
The alternative — a conventional purchase of the same $300K house — wants ~$60–75K down plus closing at ~6.8%, none of the depreciation front-loaded, no rate arbitrage. Same ballpark of cash, worse terms on every axis.
NC law limits how far cities can go, but registration/zoning differs by market. Charlotte: no permit, register with CMPD. Asheville city: whole-home STRs effectively banned (use Hendersonville/county). Coastal counties: generally permit with registration.
County room-occupancy tax + state/local sales tax on rental revenue (Mecklenburg lands ~16.25% combined). Confirm what Airbnb auto-remits vs. what you owe directly per county.
HOA declarations and condo/lease covenants can ban STR use even where the city allows it. This kills more NC STR deals than any city rule — check it before underwriting, especially on the townhouse targets.