Cash Cow in Cowtown (Conway, Arkansas), Part 3.

[Nicholas Baker Wood]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $78,000
Cash invested: $11,000

This house just needed some cosmetic repairs! Myself and some other investors have renovated roughly 1/3 of the homes in this neighborhood, and so I saw an opportunity to do a quick construction loan project. After renovations, this home rents for $1,050/month.

What made you interested in investing in this type of deal?

Who doesn't love a quick cosmetic flip? The home had a new roof and new hvac. Floors had recently been refinished, and bathroom was updated. All we needed to do was paint the exterior, change out countertops, appliances, kitchen floors, windows, and back sliding door.

How did you find this deal and how did you negotiate it?

This deal was listed on the MLS, and I put in an offer myself, since I was an agent at this point.

How did you finance this deal?

Construction Loan, 15% down, 100% of repairs financed.

How did you add value to the deal?

Replaced windows, painted exterior, new kitchen floors, new stainless appliances, new exterior back door.

What was the outcome?

The house rents for $1,050/mo and cash flows about $350.00. I have not had any maintenance requests in over a year, so a very solid investment!

Lessons learned? Challenges?

This one went really smoothly as a result of trial and error on previous projects.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Dillon Richard (First Community Bank), Beau Jones (Insurance), Matthew Bates (Greenbrier Remodeling)