Duplex - Fayetteville, AR

[Sarah Bull]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $330,000
Cash invested: $82,500

This buy and hold duplex is located in Fayetteville, AR. These are hard to come by these days! This is an investment property that will yield a 6.42% cap rate. It was a financed deal with 25% down and an ROI of 7.52. Estimated current market rent is 1,200 /month. It was built in 1994 and has a unique layout with very separate, woodsy backyard spaces and covered decks. It's is a great investment neighborhood, steps from the University bus line and city trail system.

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

With the housing shortage and crazy growth that is happening in NWA, there are still deals to be found. It takes patience, perseverance and aggressive offers to make it happen. One unit was vacant and was able to be rented at current market value right away. The other unit was rented to a long-term tenant and will be brought up to current market rent over the first year. Rents continue to increase to try and keep up with the rising home cost so the return will continue to increase over time.

[Ryan Blackstone]

@Sophie Dolezel Locally it is good because it is in the path of progress. there is new multi going up all around it. that neighborhood has a direct access to the Razorback Greenway which allows you to bike to Downtown fayetteville and the U of A. The new construction rents are pushing all rents up there (all ships rise as the tide rises). Your vacancy is under 4.5% there. There is also a bus route at the entrance of the subdivision. There is so much more, but these are what comes to mind.