DOLLIE CIRCLE, HOT SPRINGS, ARKANSAS

[John Gardner]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $50,000
Cash invested: $8,000

THIS IS A SIMPLE 3 BEDROOM, BATH & HALF HOUSE. IT IS IN ONE OF THE BEST SCHOOL DISTRICTS IN TOWN.

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

IT WAS MY FIRST RENTAL AND PURCHASED IT AND 2 OTHERS AT FORECLOSURE.

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

AGENT. THE BANK WAS ASKING 63K AT THE TIME. I OFFERED 50K AND WAITED MONTHS TO GET IT.

How did you finance this deal?

CONSTRUCTION LOAN WITH A 5 YEAR BALLOON NOTE.

How did you add value to the deal?

I HAVE TOUCHED EVERYTHING. NEW ROOF, NEW WATER HEATER, CARPET, OUTSIDE PAINT & INSIDE PAINT WHEN I FIRST PURCHASED IT. AFTER MY LAST TENANT MOVED OUT I PULLED OUT THE CARPET AND PUT IN GLUE DOWN LVT, NEW FORMICA KITCHEN COUNTER TOPS WITH A NEW BACK SPLASH. AFTER THAT WAS COMPLETED I NOW HAVE BEEN ABLE TO GET AN EXTRA $50/MONTH THAN BEFORE.

What was the outcome?

I HAVE HAD GREAT SUCCESS WITH THIS PROPERTY AND HOPE TO CONTINUE FOR YEARS TO COME.

Lessons learned? Challenges?

TO NOT RUN MY LLC LIKE A SIDE HOBBY. NOW THAT MY KIDS ARE OUT OF THE HOUSE I HAVE THE EXTRA TIME TO RUN IT CORRECTLY AND PLAN TO PICK UP MORE PROPERTIES SOON.