Investment Info:
Single-family residence buy & hold investment in Bella Vista.
Purchase price: $101,000
Cash invested: $26,000
3/2 End Unit Condo with Single Car Garage. There was an optional storage unit but the tenant didn't need it.
From Zillow:
Beautiful Townhouse, off the bike trail in Bella Vista, with three bedrooms and two bathrooms. The townhome is set up like a tri-level with a few stairs going up to bedrooms and some going down to garage and bonus room. Features include a large living area with a heated and cooled attached sunroom. Kitchen has all appliances including a dishwasher, stove, microwave and fridge and opens to living area. All three bedrooms are on second level and a big bonus room is downstairs that features washer and dryer included. Bonus room could make for an office or playroom. Townhouse also has an oversized one car garage and additional outside parking spaces. You can also rent a storage unit next to townhouse direct from POA if still available.
New Paint and new flooring.
Updates included new finishes, new faucets, new sink in downstairs bath, and new light fixtures on main level. I also added a full-glass storm door to brighten the place up a bit.
I intentionally looked for a property that would cash-flow positive or break-even at worst as this is my "training house." Already rented to someone that seems to be a great tenant. My agent, Ryan Hill manages the property for $45/mo. Ryan was my agent when I moved from Dallas to Bella Vista and I really liked his work ethic and his no-nonsense approach. So I used him for the Nantucket property, which was rented the month after I finished some minor updating.
What made you interested in investing in this type of deal?
I intentionally looked for a property that would cash-flow positive or break-even at worst as this is my "training house." Already rented to someone that seems to be a great tenant. My agent, Ryan Hill manages the property for $45/mo. Ryan was my agent when I moved from Dallas to Bella Vista and I really liked his work ethic and his no-nonsense approach. So I used him for the Nantucket property, which was rented the month after I finished some minor updating.
How did you find this deal and how did you negotiate it?
I had been watching the property for a couple of months and noticed it was sold but the deal fell through. I knew it sold for $105k. I came in with a decent offer [IMO] of $99k and had them covering some closing costs. We ended up at $101k and the seller paid all the closing costs they were allowed to on an investment property.
How did you finance this deal?
Conventional
How did you add value to the deal?
Quick closing and some TLC.
What was the outcome?
And they lived happily ever after.
Lessons learned? Challenges?
I knew this going in but it still stinks having to pay POA and Townhouse Asso dues. I was able to get the tenant an annual guest pass in order to benefit from all the Bella Vista Amenities. I had to do some additional paperwork to have the water billed directly to the tenant. Sewer fees, which are $25/mo, have to be paid by the property owner - so I added $25 to the monthly rent.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Ryan Hill of The Virtual Realty Group Arkansas, LLC (Hog Properties) was the buying agent. He also leased and manages the property. I'm totally hands off. Being a newbie, it was great leaning on Ryan for lease agreements, credit checks, rental history, showings, etc. I plan to use him on my next deal as well.
