Investment Info:
Single-family residence buy & hold investment.
Purchase price: $235,000
Cash invested: $32,000
This is a single family carport rancher in SW downtown Bentonville. Dated, but it in a great location.
What made you interested in investing in this type of deal?
My partner and I are very interested in the growth and development of Bentonville, AR with the new Walmart Home Office campus under construction and the enormous investment the Waltons have made in the mountain biking trails and amenities around. Our population grows at net 35 people per day and we feel like even though prices are sky rocketing it is still a good time to get in.
How did you find this deal and how did you negotiate it?
I am an agent and I host a weekly hyperlocal Clubhouse room for realtors in this area. One of the agents who attends regularly had the listing coming soon and told me about it. He said it was a young couple who thought this would be their first flip, but quickly got in over their heads when the house needed a new roof, had some structural issues to remediate and needed a hot water heater. They took care of those issues and decided to find an easier first investment.
How did you finance this deal?
We financed it with a commercial loan through one of our small local banks. 15% down and 6 months interest only.
How did you add value to the deal?
We unified the floors by doing a gorgeous light colored LVP throughout, painted the interior SW Incredible White, new basic granite countertops, new prefab bathroom vanities, new toilets, added a fence to the yard, upgraded all switches to rockers and replaced all fixture with flush mount LEDs. Also replaced all knobs, hinges, and hardware to brushed matte black. Painted the exterior White Dove, replace both doors and painted them black.
What was the outcome?
House rented before hitting the market
Lessons learned? Challenges?
Learned a lot about mold remediation and the timing of trades. We stayed ahead of schedule by staying in communication with the trades and checking on the project daily.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I am an agent and represented us on the purchase. Marcus Necessary was the listing broker and I highly recommend him.
