1808 S. Pierce Street, Little Rock

[Damon Cluck]

Investment Info:

Single-family residence buy & hold investment in Little Rock.

Purchase price: $52,200
Cash invested: $6,000

I purchased this home from a fellow investor using a Line of Credit from Arkansas Federal Credit Union. 6% amortized for 20 years with a 5 year balloon. They loan up to 80% of ARV. The home appraised for $64,625 and I put an additional $7000 in upgrades. Zillow now says it is worth $79,000. It currently rents for $825. I hope to refinance to a conventional mortgage to get a longer term and better rate. The home is a 3/1 located in the Fair Park neighborhood, just a block north of the University of Arkansas at Little Rock. Rehab included new LVP, new garage door and updates to the kitchen. I use Century 21 Prestige Reality as my property manager.

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

I am primarily a buy and hold investor but I will occasionally flip in order to reinvest the profits. I am a military retiree so I use all profits to reinvest.

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

Through a friend who is also an investor. He owns a HomeVestor's franchise and bus home in the Little Rock Area. This one didn't meet his criteria for buy and hold. He held it for 2 years and then sold it to me. He agreed to take 80% of the ARV.

How did you finance this deal?

I purchased the house using a Line of Credit from Arkansas Federal Credit Union. 6% amortized for 20 years with a 5 year balloon. They loan up to 80% of ARV.

How did you add value to the deal?

I put an additional $6000 in upgrades. These included LVP in the living areas, kitchen refresh, finished the interior of the garage and added a new garage door, added gutters, cleaned up the overgrown back yard.

What was the outcome?

The house is currently rented for $825. After Principle, Interest, Taxes, Insurance, and Property Management, the property cash flows, $120.00. I hope to refinance to a conventional mortgage with a better rate and longer term financing.

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

Roane Ashmore at Arkansas Federal Credit Union is my loan officer.