Long-Term Buy and Hold!

[Justin Melendez]

Investment Info:

Single-family residence buy & hold investment in Fayetteville.

Purchase price: $105,000
Cash invested: $25,000

Buy and Hold rental in a great neighborhood, currently rented below market rent.

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

Looking for "B" class properties in desirable neighborhoods for stable cash-flow in the next 10-15 years.

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

Propstream List followed by text-blast campaign.

How did you finance this deal?

Conventional loan with 20% down.

How did you add value to the deal?

Minor repairs to address the tenants immediate needs/wants. This will help build our case to slowly raise rents. This property is currently rented $200-$300 below market rent. We have the ideal tenant right now and don't care to lose her, so we will slowly raise rents over the next few years. If she decides to move, we will completely renovate the property and rent out at market rates.

What was the outcome?

We continue to hold this property, this home and homes-alike are key to my early retirement plan.

Lessons learned? Challenges?

Dealing with conventional lenders can be a challenge. Stay on top of them and always asked them if they need anything of you. Often times you will find that there is an inquiry sitting in a queue somewhere waiting to be fulfilled and your loan representative had no clue until you asked. We were able to close this deal in 30-days despite this being a conventional loan in the middle of the COVID crisis/demand.

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

PennyMac for Financing and Hutchens Law Firm for closing (they were both amazing)!