I purchased a FSBO, 7000 sq ft house that sits on the top of Mt Riante, in Hot Springs AR. The original construction was started between 2004 and 2008. We assume the housing crash caused the owner to dump the asset and move on. The next owner was a hope-to-be flipper, but the project never got off the ground and afterward exchanged hands a few more times until I picked it up from the most recent owner. She lived in Michigan, and wanted to remodel it as her retirement home. Her sister passed away, which delayed the start of the project, then her job moved her to Asia, so she decided to sell it to me instead.

We are in the process of rehabbing the property, which is mostly down to stud. Once finished, we plan to market it as a vacation rental. Hot Springs has a growing VR market, and even with our very conservative estimates it should cash flow very well. At maximum utilization, this is an early retirement deal with six-figure annual cash flow after debt service. In the off chance that the VR plan is a bust, we will be able to sell and make a sizable profit.

The pictures here are of the front of the house from the street, the view of Hot Springs from the back, and the current architectural plans. We are still tweaking the layout at the moment, but I will update when we have the final version. If anyone is looking for a VR in 6-months, hit me up. I may even work up a BP discount for my fellow investors!

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

I always planned on moving to the VR market once my LT rental portfolio was built up. This opportunity came out of left field and we couldn't pass it up.

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

I found this deal on the MSL as a FSBO. After speaking with the owner on the phone, I met a friend of her's at the property. When I spoke to her again, I told her about our vision for the property. She was so pleased with our plan that she came off her price 20%.

How did you finance this deal?

I purchased the property with cash, but will use private money to renovate. Once finished, I will refinance to permanent financing for the VR stage of the project.

Lessons learned? Challenges?

This is a huge house at 7000 sq ft. I run a small crew for my local fix/flip and BRRR deals, but this was too big for us to handle alone. I am now working with a contractor from the area.