All Forum Posts by: Nicholas Baker Wood

I'm a Broker in Central Arkansas, and specialize in assisting investors through property management, purchasing, selling, and deal evaluation! Hit me up with any questions :)

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $78,000
Cash invested: $11,000

This house just needed some cosmetic repairs! Myself and some other investors have renovated roughly 1/3 of the homes in this neighborhood, and so I saw an opportunity to do a quick construction loan project. After renovations, this home rents for $1,050/month.

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

Who doesn't love a quick cosmetic flip? The home had a new roof and new hvac. Floors had recently been refinished, and bathroom was updated. All we needed to do was paint the exterior, change out countertops, appliances, kitchen floors, windows, and back sliding door.

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

This deal was listed on the MLS, and I put in an offer myself, since I was an agent at this point.

How did you finance this deal?

Construction Loan, 15% down, 100% of repairs financed.

How did you add value to the deal?

Replaced windows, painted exterior, new kitchen floors, new stainless appliances, new exterior back door.

What was the outcome?

The house rents for $1,050/mo and cash flows about $350.00. I have not had any maintenance requests in over a year, so a very solid investment!

Lessons learned? Challenges?

This one went really smoothly as a result of trial and error on previous projects.

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

Dillon Richard (First Community Bank), Beau Jones (Insurance), Matthew Bates (Greenbrier Remodeling)

Investment Info:

Single-family residence buy & hold investment in Conway.

Purchase price: $89,000

For our previous properties, we had experienced trouble with choosing the wrong contractor! This time, I decided things would be different. I decided that I was going to do as much work myself as I could, and that I would also hire my wife's coworker, who had experience remodeling homes, to help facilitate the work that I wouldn't be able to do on my own. This was a really fun project, and at the time we purchased it, no other homes had been renovated on the street.

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

The house was in rough cosmetic shape. Basically everything needed replaced except for windows and exterior siding. Ceilings were caving in, cabinets and floors were falling apart, and the house was just dated and ugly.

The house was a large 3/2 next to downtown Conway, and the price per sq. footage gave us confidence that the property could appraise highly enough to justify the bank lending us enough money for the repairs.

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

My business partner, Zach Saxion, found this property and encouraged my wife and I to put an offer on it.

How did you finance this deal?

Construction loan, 0% down, and bank financed repairs.

How did you add value to the deal?

Replaced all flooring, roof, cabinets, marble counters, light fixtures, stainless appliances, interior paint, ceiling repair, new walk in shower in master, new bathroom vanities, shelves in bathroom, chain link fence, new Air Conditioning, and landscaping.

What was the outcome?

After Repair Appraised Value was $155,000, and we have rented the property out for almost 2 years at $1,325/mo.

Lessons learned? Challenges?

My wife and I had many arguments about how much time I was spending on this remodel! While I'm glad we did it, it was a tonnnnn more work that I was expecting. I learned so much working along my friend on the property, and the only way we could make this property profitable was to do a lot of the work myself.

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

Zach Saxion, Matt Carter (First Service Bank, Greenbrier), Beau Jones (Insurance)

Hey @William Martin, I'd love to chat! You can find my contact details on my profile

If you'd held on to your property here in Conway, it would have been worth a pretty penny by now. It's pretty astounding to see the growth taking place in our market.

Investment Info:

Single-family residence buy & hold investment in Conway.

Purchase price: $59,500

This home was purchased in a bundle with another home for $119,500 total. We put about $20,000 of the bank's money into this property using a construction loan, and have made some out of pocket repairs after the initial capital expenditures. This large 3/2 home with a large bonus room is nearly 100 years old, but it is still in good condition, and has been updated with new HVAC, insulation, electrical (installed by previous owner), flooring and paint, windows, and kitchen backsplash + counters.

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

My wife and I were interested in purchasing strictly investments properties after owning one successfully for about 8 months leading up to this. At the time, many banks were requiring 0% down on construction loans, and financing the entire cost of the remodel. We were able to buy these two homes, and remodel them (mostly) within budget, only coming out of pocket slightly.

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

Zach Saxion, now my business partner, found these homes off-market for us.

How did you finance this deal?

Construction loan

How did you add value to the deal?

New floors, new windows, exterior window trim, fascia, soffit and porch rail paint, new counter tops, kitchen backsplash, new light fixtures, interior paint, new HVAC system, new attic insulation, new water heater, washer and dryer, and finished out the lower bonus room with sheetrock and texture. New roof added in 2021.

What was the outcome?

The home now rents for $1,050/mo, and could likely get $1,150/mo in today's rental market. The location isn't amazing; however, the lot is large, and if we hold on to the property long enough, we could eventually build 2-3 duplexes on the lot. It's near downtown Conway, so the area has potential to get better in the near future.

Lessons learned? Challenges?

Our contractor was lazy and asked for too much money up front. He didn't do a good job on some key areas, and was not timely in getting work done. While we thankfully were able to get him to do the job right, it ended up costing us more money and sanity than it felt was warranted at the time.

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

Zach Saxion was our agent, Matt Carter with First Service Bank, Greenbrier facilitated the loan, and Beau Jones assisted with insuring the property.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $108,500
Cash invested: $21,700

There are so many great memories about this house! My wife and I had relocated to Conway, Arkansas the year before, and were renting an average 2 bed 1 bath apartment in the area. We knew we didn't want to rent for long, so we aggressively saved and budgeted with discipline. This allowed us to have enough to put 20% down on a great 3 bed 2 bath home with a 2 car garage and fenced in yard near the University of Central Arkansas.

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

This was the first home that my wife and I purchased. When we bought it, we did not think that it would become a rental property; however, we wanted a home with some more space, and after a year, we bought our current home and rented out this one.

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

This deal was a for sale by owner. We wanted to put 20% down, and we only had enough to cover that down payment, and not the closing costs. We asked the sellers to pay our closing costs, and offered them above asking price, which resulted in us getting the deal!

How did you finance this deal?

Conventional loan, 15 yr. fixed rate. 20% down payment.

How did you add value to the deal?

We used to rent this house out for $1,200/mo; however, this past summer, we enhanced the parking area, and remodeled both bathrooms. We also had some friends moving out of the country, and we purchased their furniture for a low price, and the home is now a partially furnished rental. We get $1,400/mo in rent from it now.

What was the outcome?

The home now rents for $1,400/mo. Our monthly payment (on a 15 year note) is around $900/mo.

Lessons learned? Challenges?

This home requires flood insurance, which means that flood insurance premium eats into our cash flow; however, we have still been able to raise the rents to accommodate for that extra expense. This requirement for flood insurance may impact resale value; however, it is possible that, with a new survey, the home may no longer be in a flood zone.

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

(This was before I had my Real Estate License) Tracy Thomas and Evelyn Dean with RE/MAX Elite helped us facilitate the purchase from the owners, and Deanna Jones with (at the time) Bear State Bank provided financing. Beau Jones acted as our insurance agent.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $108,500
Cash invested: $21,700

There are so many great memories about this house! My wife and I had relocated to Conway, Arkansas the year before, and were renting an average 2 bed 1 bath apartment in the area. We knew we didn't want to rent for long, so we aggressively saved and budgeted with discipline. This allowed us to have enough to put 20% down on a great 3 bed 2 bath home with a 2 car garage and fenced in yard near the University of Central Arkansas.

After living in the home for a year, we kept this one as a rental.

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

This was the first home that my wife and I purchased. When we bought it, we did not think that it would become a rental property; however, we wanted a home with some more space, and after a year, we bought our current home and rented out this one.

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

This deal was a for sale by owner. We wanted to put 20% down, and we only had enough to cover that down payment, and not the closing costs. We asked the sellers to pay our closing costs, and offered them above asking price, which resulted in us getting the deal!

How did you finance this deal?

Conventional loan, 15 yr. fixed rate. 20% down payment.

How did you add value to the deal?

We used to rent this house out for $1,200/mo; however, this past summer, we enhanced the parking area, and remodeled both bathrooms. We also had some friends moving out of the country, and we purchased their furniture for a low price, and the home is now a partially furnished rental. We get $1,400/mo in rent from it now.

What was the outcome?

The home now rents for $1,400/mo. Our monthly payment (on a 15 year note) is around $900/mo.

Lessons learned? Challenges?

This home requires flood insurance, which means that flood insurance premium eats into our cash flow; however, we have still been able to raise the rents to accommodate for that extra expense. This requirement for flood insurance may impact resale value; however, it is possible that, with a new survey, the home may no longer be in a flood zone.

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

(This was before I had my Real Estate License) Tracy Thomas and Evelyn Dean with RE/MAX Elite helped us facilitate the purchase from the owners, and Deanna Jones with (at the time) Bear State Bank provided financing. Beau Jones acted as our insurance agent.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $108,500
Cash invested: $21,700

There are so many great memories about this house! My wife and I had relocated to Conway, Arkansas the year before, and were renting an average 2 bed 1 bath apartment in the area. We knew we didn't want to rent for long, so we aggressively saved and budgeted with discipline. This allowed us to have enough to put 20% down on a great 3 bed 2 bath home with a 2 car garage and fenced in yard near the University of Central Arkansas.

After living in the home for a year, we kept this one as a rental.

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

This was the first home that my wife and I purchased. When we bought it, we did not think that it would become a rental property; however, we wanted a home with some more space, and after a year, we bought our current home and rented out this one.

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

This deal was a for sale by owner. We wanted to put 20% down, and we only had enough to cover that down payment, and not the closing costs. We asked the sellers to pay our closing costs, and offered them above asking price, which resulted in us getting the deal!

How did you finance this deal?

Conventional loan, 15 yr. fixed rate. 20% down payment.

How did you add value to the deal?

We used to rent this house out for $1,200/mo; however, this past summer, we enhanced the parking area, and remodeled both bathrooms. We also had some friends moving out of the country, and we purchased their furniture for a low price, and the home is now a partially furnished rental. We get $1,400/mo in rent from it now.

What was the outcome?

The home now rents for $1,400/mo. Our monthly payment (on a 15 year note) is around $900/mo.

Lessons learned? Challenges?

This home requires flood insurance, which means that flood insurance premium eats into our cash flow; however, we have still been able to raise the rents to accommodate for that extra expense. This requirement for flood insurance may impact resale value; however, it is possible that, with a new survey, the home may no longer be in a flood zone.

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

(This was before I had my Real Estate License) Tracy Thomas and Evelyn Dean with RE/MAX Elite helped us facilitate the purchase from the owners, and Deanna Jones with (at the time) Bear State Bank provided financing. Beau Jones acted as our insurance agent.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $108,500
Cash invested: $21,700

There are so many great memories about this house! My wife and I had relocated to Conway, Arkansas the year before, and were renting an average 2 bed 1 bath apartment in the area. We knew we didn't want to rent for long, so we aggressively saved and budgeted with discipline. This allowed us to have enough to put 20% down on a great 3 bed 2 bath home with a 2 car garage and fenced in yard near the University of Central Arkansas.

After living in the home for a little over a year, we purchased our current residence, and kept this home as a rental, which made this home our first rental/investment property. Living in the home for a year helped us feel comfortable that there weren't any major maintenance or safety concerns. We currently have the home on a 15 year fixed rate mortgage, and owe roughly $60,000 on it as of 12/1/2021. We rent this home out as a partially furnished home to college students for $1,400/month, and the home would be worth $150,000-$170,000 in today's market, so we have built roughly 6-figures of equity in this home in just a few years.

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

This was the first home that my wife and I purchased. When we bought it, we did not think that it would become a rental property; however, we wanted a home with some more space, and after a year, we bought our current home and rented out this one.

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

This deal was a for sale by owner. We wanted to put 20% down, and we only had enough to cover that down payment, and not the closing costs. We asked the sellers to pay our closing costs, and offered them above asking price, which resulted in us getting the deal!

How did you finance this deal?

Conventional loan, 15 yr. fixed rate. 20% down payment.

How did you add value to the deal?

We used to rent this house out for $1,200/mo; however, this past summer, we enhanced the parking area, and remodeled both bathrooms. We also had some friends moving out of the country, and we purchased their furniture for a low price, and the home is now a partially furnished rental. We get $1,400/mo in rent from it now.

What was the outcome?

The home now rents for $1,400/mo. Our monthly payment (on a 15 year note) is around $900/mo.

Lessons learned? Challenges?

This home requires flood insurance, which means that flood insurance premium eats into our cash flow; however, we have still been able to raise the rents to accommodate for that extra expense. This requirement for flood insurance may impact resale value; however, it is possible that, with a new survey, the home may no longer be in a flood zone.

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $765,000
Cash invested: $120,000

This Mixed-Use Short term and long term apartment building was a rare find! It's right on the outskirts of the growing "South on Main Arts District" near downtown Little Rock. As the area continues to develop, and crime + decrepit properties diminish, the rents and resale value will increase exponentially. After purchasing, we have re-arranged some leases, and are working on improving the AirBnB Units in order to maximize Cash Flow.

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

I acted as the buyer's agent on this off market deal. After getting my buyer under contract to purchase it, the buyer asked me if I would like to co-invest into the property, to which I replied "yes!" I had, to date, not invested personally in something that large; however, I knew that this property was going to generate passive income from day one, and that our equity stance would have a lot of room to grow as the area, inevitably, improves.

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

This deal was found by an acquisition agent on our team who specializes in finding off-market Real Estate investment opportunities. The buyer agreed to the seller's asking price, since it was reasonable, and the numbers checked out.

How did you finance this deal?

Commercial loan with 15% down.

How did you add value to the deal?

Currently, the units are leased for $100-$200 lower than they should be per unit per month. We will begin by billing water back to the tenants, and increasing rent to market values when turnover occurs. There are 8 renovated units, and 2 that remain un-renovated. We will shift tenants out of un-renovated units in order to bring them up to par with the others, or above the standard of other units, and attempt for $850/unit per month. Additionally, we will improve AirBnB Income.

What was the outcome?

So far, so good. We have had to evict one tenant already, since they had guests loitering and making noise at late hours, which was disturbing AirBnB guests, resulting in a few negative reviews. The property is performing as expected, if not better. and after a couple months, we are realizing positive cash flow.

Lessons learned? Challenges?

When purchasing AirBnB Properties, be sure to look at reviews posted by guests who stayed under the seller's ownership/jurisdiction. This can be telling of how the property will be reviewed once you purchase it, and it can allow for changes to be made early on, if possible, to remedy potential negative situations.

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

Dawn Johnson, with Partners Bank in Conway, was really helpful in executing this deal. Bryan Dearasaugh with Rock Solid Home Inspections made sure that we knew exactly what we were purchasing.