Days gone by

[Nick Slagle]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $50,000
Cash invested: $16,000
Sale price: $127,000

Purchased with a 75% loan for cash flow. Installed a new roof and fresh paint. Leased for $750-$900 over the five plus years held. Refinanced with a $75,000 mortgage in 2014 and made my pockets bigger by about $40,000. That's $24,000 (or 2.5x)more than my initial investment. Now receiving an infinite return rate. Sold to 1031 exchange into a pair of duplexes with no money out of pocket. The house on 14th street has since been demolished.

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

This was my first deal and I suffered from analysis paralysis for two years before pulling the trigger on my first real estate investment. Writing that check for the down payment was absolutely frightening at the time. Wish I would have had the balls to buy ten of them.

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

HUD owned house in the MLS. It was listed at $55k and my $50k offer was snatched up by HUD as quick as we wrote it.

How did you finance this deal?

15 year conventional mortgage with 25% down

How did you add value to the deal?

Personally hammered every shingle on that new roof and painted the interior. I learned that free paint to a tenant to paint the exterior doesn't get the job done, even when it was their idea.

What was the outcome?

This was a BRRR before I had even heard of the term. I just looked at it as a long-term investment in a fixer-upper when making the purchase.

Lessons learned? Challenges?

15 year mortgages are dumb. Refinancing is smart. I wish that I would have not sold the house.

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

My Realtor at the time was my good friend Nate Koenigseder. I would recommend him to anyone looking to invest in the Bentonville area. I have since acquired my own real estate sales license and subsequently broker license to start, grow, and operate Home Roots Property Management. I would recommend myself as an experienced investor with an investor's perspective to anyone who needs help with property management and real estate investing strategy.