Buy and Hold investment Northwest Arkansas

[Zachary Stanley]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $315,000
Cash invested: $10,000

This is another buy and hold my wife and I are doing. We house hack in the sense that we will buy a home for a low down payment typically 3-5%. Then I put my realtor commission I receive towards the down payment of the home which is typically 3%. So my down payment ends up being very small and then all I cover is closing costs. We live in the home for a time period then move to our next home and rent out our old one that will cash flow! One of the simplest and easiest ways to be an investor!

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

Great location next to a downtown area. House was solid but just needed surface level updates.

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

Found it on market. I won this over about 8 other offers, I felt like I was overpaying at the time but I know this is a long term play and home will more than cover itself, so its a safe play.

How did you finance this deal?

Conventional 30 year. 5% down with a 4.5% interest rate.

How did you add value to the deal?

All new floors, painted EVERYTHING... inside was completely painted along with scraping of popcorn ceilings. Outside was painted as well.

We added all new cabinet hardware, door hardware and changed out all the light fixtures in the whole home.

What was the outcome?

A great long term buy and hold home that will appreciate, be easy to manage and it will cash flow.

Lessons learned? Challenges?

If I had to do it over again I may have gone after a home priced a little less just to get my cash flow up more on this investment but overall I'm very happy with this purchase.

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

I'm my own agent haha.