Investor Guide
Buying residential investment property
Canvas Homes connects investors with residential properties (primarily single-family) that offer an opportunity to create value through renovation and resell, rental ownership, or development.
We help you find and review opportunities, understand the transaction, and prepare for closing. The property acquisition piece is handled by our team then presented to you; all you need to do is close and fund and carry out your investment plan.
What you are buying
You are purchasing an individual property. This is an active real estate investment: you are responsible for ownership expenses, repairs, financing, and your eventual rental or sale. Your results depend on the price you pay and what happens after you buy.
How Canvas Homes works
Canvas Homes is a licensed real estate brokerage serving investors in the Nashville, Charlotte, and Raleigh markets. Our model generally involves two purchases, commonly called a double close. A regional holding company purchases the property from the original seller and then resells it to the end investor under a separate contract. The holding company funds its purchase separately; investor purchase funds are not passed through to fund that initial acquisition.
Canvas Homes agents represent the holding company in these transactions. They do not act as your buyer representative. You may use your own real estate agent, attorney, inspector, lender, or other advisers, however any compensation arrangements between you and one of these parties are your responsibility.
Where we add value
A source of investment opportunities and a direct point of contact throughout the purchase.
Property information and comparable sales to support your own evaluation.
Coordination of access, transaction documents, deadlines, and closing communications.
Access to third-party industry participants who offer critical services not provided by Canvas Homes.
Our goal is to help you make an informed decision and complete the purchase efficiently. Property availability varies, and a particular deal may not fit your budget, strategy, or risk tolerance.
Your purchase from start to finish
1. Meet with your disposition agent
Investing in real estate is a significant financial commitment, and our first meeting lays the foundation for working together confidently. We take time to understand your experience, goals, concerns, and how you evaluate an investment. You’ll get to know your disposition agent and learn how Canvas sources and evaluates opportunities, how our purchase process works, and what to expect from us. We’ll discuss valuation, renovation assumptions, margins, funding, and decision timelines so we understand one another before a property is on the table. This is your opportunity to ask questions, address uncertainties, and determine whether our approach fits the way you invest. The goal is to build trust and establish a working relationship that supports informed, timely decisions when the right opportunity arises.
2. Establish your ability to close
Have proof of funds or financing information available. Confirm how much cash you can deploy after allowing for down payment, purchase costs, renovation, and reserves. A lender conversation should cover the property condition, borrower or entity requirements, fees, funding schedule, and loan maturity, so that at the time of property visit you are able to confidently make a decision with expediency.
3. Review an opportunity and visit the property
Review the purchase price, available property information, comparable sales, access arrangements, and closing timeline. Inspect the property and obtain your own repair estimates. Keep scheduled showing times and coordinate any contractor or inspector access through your Canvas agent.
4. Make the decision before you commit
Complete the evaluation needed to support your commitment within the access and timeline available. Read the purchase agreement and addendum(s), including the down payment requirement, communication regarding contingencies, and results of buyer-default. Ask questions before signing or sending money.
5. Fund and close
Work with the closing attorney or title company and your lender to complete the purchase. Review the settlement statement, confirm the funds required, and verify wire instructions through a known phone number. Arrange insurance effective at ownership and confirm when possession will be released.
Canvas expects investors to honor the agreed price and closing date. Our process does not contemplate renegotiating after contract. A requested closing extension requires approval and an additional nonrefundable deposit under the applicable written terms. A request alone does not change a deadline.
Understand the complete investment
The result depends on what you buy, what you choose to improve, and how you execute the project. Compare a realistic base case with a favorable outcome and a downside you can afford. After repair value, or ARV, must reflect the specific renovation you plan to deliver.
Three outcomes for the same purchase
These hypothetical examples use a $200,000 purchase and a $180,000 acquisition loan at 12% annual interest, with interest-only payments and two origination points. The investor pays for renovation in cash. Loan terms are identical across the cases and are illustrations, not lender quotes.
| Project item | Best case | Base case | Downside case |
|---|---|---|---|
| Purchase price | $200,000 | $200,000 | $200,000 |
| Actual renovation spending | $55,000 | $40,000 | $55,000 |
| Upfront loan fee at 2 points | $3,600 | $3,600 | $3,600 |
| Other purchase closing costs | $3,000 | $3,000 | $3,000 |
| Time from purchase to resale | 5 months | 5 months | 7 months |
| Loan interest at $1,800 per month | $9,000 | $9,000 | $12,600 |
| Property expenses at $600 per month | $3,000 | $3,000 | $4,200 |
| Selling costs at 6% of resale price | $20,700 | $18,600 | $18,000 |
| Total project cost | $294,300 | $277,200 | $296,400 |
| Resale price | $345,000 | $310,000 | $300,000 |
| Project profit before income tax | $50,700 | $32,800 | $3,600 |
| Holding-period cash-on-cash ROI | 54.2% | 41.7% | 3.7% |
| Simple annualized cash-on-cash ROI | 130.0% | 100.2% | 6.3% |
Your purchase price matters. So do the improvements you choose, how well you manage the project, and how quickly you sell.
What does that mean for your money?
The base case earns $32,800 using $78,600 of investor cash. That is a 41.7% cash-on-cash return in five months, equivalent to a 100.2% simple annualized rate.
| Better case | Base case | Downside case | |
|---|---|---|---|
| Investor cash contributed | $93,600 | $78,600 | $98,400 |
| Profit before income tax | $50,700 | $32,800 | $3,600 |
| Project duration | 5 months | 5 months | 7 months |
| Cash-on-cash return | 54.2% | 41.7% | 3.7% |
| Simple annualized return | 130.0% | 100.2% | 6.3% |
Evaluate what you earn against the cash and time required to earn it. A well-executed project can generate a substantial return on your contributed capital, even when the dollar profit initially appears modest.
These hypothetical examples use borrowed funds. Returns exclude income taxes, unused reserves, and a separate charge for investor labor. Calculations treat total contributed cash as committed throughout the project. Simple annualized returns express the project’s pace over twelve months without compounding; they do not predict annual earnings or assume another project is immediately available.
Evaluate the property and your exit
For a renovation and resale
Support the expected resale price with provided sold comparables or verify by reviewing additional recent, relevant sold comparables. Adjust for location, size, layout, condition, and the finish level buyers expect.
Have a contractor define the scope, pricing, schedule, permit needs, and payment terms. Investigate major systems and conditions outside your experience.
Allow for construction delays and time to market and close the finished home. Confirm the loan can remain in place through that period.
For a rental property
Verify achievable rent with comparable rentals and assess the property condition required to attract and retain tenants.
Budget for vacancy, maintenance, major replacements, management, taxes, insurance, HOA costs, and any owner-paid utilities. Subtract debt payments to estimate cash flow after financing.
If you plan to refinance, obtain lender requirements early. Consider the outcome if the appraisal is lower, the interest rate rises, or refinancing is unavailable.
Prepare for a successful closing
Before signing
Complete your investor meeting to understand transaction and process.
Evaluate the property, repair scope, expected exit, and downside scenario.
Confirm your funding source and the cash needed to carry the project.
Understand deposits, deadlines, access, possession, and the transaction terms.
Before closing
Submit the purchasing entity information and documents requested by the closing provider and lender.
Review settlement figures, arrange insurance, and independently verify wiring instructions.
Confirm possession, utility arrangements, and your plan for the first week of ownership.
Common Questions
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Yes. Tell your Canvas contact early so communication, access, and compensation arrangements can be addressed before the contract.
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No. You make the investment decision and remain responsible for verifying the assumptions and executing the project.
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No. Canvas provides investment opportunities but does not provide construction, leasing, management, or resale services.
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In the double-close model, the local holding company purchases and resells the property at different prices. That resale margin supports the business. Review your own purchase price, charges, and settlement statement rather than assuming a separate buyer agency fee.
Start a conversation
canvas.homes | admin@canvas.homes | (615) 200-0774
To get started, tell us your target market, budget, funding source, experience, and preferred investment strategy. We will use the investor meeting to understand which opportunities may fit.
This guide explains the general process. Your signed agreements govern each purchase. Obtain independent legal, tax, and financing advice for your circumstances.
TN firm license 266344. NC firm licenses C41050 and C41444.