Investment Info:
Other buy & hold investment.
Purchase price: $50,000
Cash invested: $10,000
Finally! I get to update BP on my 5th door (6th coming soon). I took a different strategy and found a value-add property in that I purchased a single unit with additional land to add a secondary unit.
This is my first purchase after moving to Arkansas and in this real estate environment, I had to think outside the box as this is the first deal to make it to the closing table in over 6 months of making offers.
What made you interested in investing in this type of deal?
The ability to add value by adding an additional unit to the property.
How did you find this deal and how did you negotiate it?
This was an off market deal I found through my realtor, just by asking questions and stay in contact. No negotiation needed; I got offered a great deal that ended up giving me 20k of equity.
Side note: this is my third purchase from an owner/agent and they have by far been the best deals. Anyone else experience this?
How did you finance this deal?
Commerical loan
How did you add value to the deal?
I will add another unit the property.
What was the outcome?
Coming soon.
Lessons learned? Challenges?
Lesson learned is start due diligence right away and follow up often. This was and is still a learning experience in septic tanks, water meters and what companies handle what. Get everything in writing because no one is on the same page.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I do have local connections if anyone is interested in North Central Arkansas.
