New property acquired in Beebe, AR

[Christopher Stevens]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $135,000
Cash invested: $5,500

Small property in Beebe, Arkansas. This property has more cash flow than the Las Vegas property. However, the rate is higher and the capital paydown is significantly lower than the Las Vegas property.

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

Easy turnkey deal. Low cost of acquisition. Higher cash flow than another property. Good rate and property management concessions to help with cash flow.

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

I found it through REI Nation. I worked with Taz to help get favorable terms to increase cash flow and get a decent rate.

How did you finance this deal?

CrossCountry Mortgage

How did you add value to the deal?

I tried to make the purchase fast and easy. Since we closed on another property earlier in January, the lender had all the docs necessary to close this deal quickly.

What was the outcome?

More cash flow than a property (Las Vegas) that I sold in December. And cash left over to pay off other debts and make other investments.

Lessons learned? Challenges?

I learned that keeping another property I acquired might not be the best option. Taking the cash from another property sold and buying more property to create more cash flow. The biggest challenge was deciding to sell one property to generate more and better opportunities. It's easy to get stuck with what's been working and not think outside the box to improve things.

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

I recommend working with Taz at REI, REI Nation, and CrossCountry Mortgage. They're the BEST for turnkey deals. Yes, things cost A LOT more, making it hard to find good deals and create cash flow, but having a great partner is worth the extra cost.