Prairie Grove - NWA Buy & Hold Investment

[Sarah Bull]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $205,000
Cash invested: $205,000

This buy and hold investment is located in a small town in what used to be "off the beaten path", near Fayetteville, AR. The explosion of growth in the Northwest Arkansas Area and associated appreciation rate and home price increases, coupled with not enough available homes for the demand, has led to growth in all the surrounding towns. Prairie Grove has become a viable place to invest and it is still possible to find homes in the lower 200's.

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

This was a cash deal at 205,000. The home was owner-occupied so we were able to move new tenants in and capture rent at current market value right away. It is leased at 1,495/month, bringing a cap rate of 6.13% and an ROI of 6.07. The monthly cash flow on this property is $1,047/month. This home was well cared for with one owner, so there was very little cost in getting it rent-ready following the purchase. A real honey for my clients! Their investment goal was to move their cash from another