Still able to find deals, even with higher interest rates

[Zachary Rymarcsuk]

Investment Info:

Single-family residence buy & hold investment in Fayetteville.

Purchase price: $120,000
Cash invested: $40,000

3/1 SFH built in 1962

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

Potential for cash flow on a nearly turnkey property and the ability to bring another investor into the fold to finally get their toes wet with REI!

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

MLS deal. Submitted offer at asking price the day it got listed, due to hot market and value adds which sellers completed prior to listing.

How did you finance this deal?

30-yr fixed rate conventional loan with partner.

How did you add value to the deal?

Had new roof installed and renovated a handful of other smaller items.

What was the outcome?

Took longer than originally planned to get it rented, but able to get it rented above the rate that I ran the numbers at, so it's a win.

Lessons learned? Challenges?

If a property has a room painted a "special" color, don't leave it and wait for the "right" tenant to come along who happens to like it. Just paint it a neutral color before even listing for rent. We went 3 weeks without any applicants, with most who looked at the property citing the yellow kitchen (walls and cabinet doors/drawers) as the reason for not wanting to apply. Within 1 day of repainting the walls white and the cabinet doors/drawers dark gray, we found our tenant. Don't wait.