Another Long-Term Play

[Justin Melendez]

Investment Info:

Single-family residence buy & hold investment in Fayetteville.

Purchase price: $102,000
Cash invested: $24,000

Long Term Buy and Hold

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

Similar to the last property I posted, this is a home in a stable "B" class neighborhood which I plan to hold for a long time.

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

Propstream List followed by a text-blast campaign.

How did you finance this deal?

Conventional Loan with 20% down.

How did you add value to the deal?

House was turnkey

What was the outcome?

Able to add another property to my portfolio with minimal cash flow at the moment. However, this property is below market rent by $100-$200 and is located in a desirable neighborhood. We will continue to accommodate the current tenant, if they move we will renovate and place a tenant at market rates.

Lessons learned? Challenges?

We had 2 conventional loans in escrow at the same time. We actually went under contract on the same day. I did not know this was possible. We used the same lender for both and I figured it would simplify the underwriting process and I think it did. We dealt with one loan officer/team to close both loans and there were little to no speed bumps.

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

PennyMac Loans and Harry Marsh Law for closing (both were great)!