Investor · Bella Vista, AR · Member since 2015 · 67 posts · 47 votes
With just a few weeks left in the year, it's likely that I'll end 2020 having made no purchases. I only began looking in earnest in late October, so I don't feel too bad about it, but I'd love to hear about what YOU purchased this year.
What was your goal for the year?
How many purchases did you make? What was the property type and the investment strategy (wholesale, flip, buy and hold, etc)? Where are they located?
Any details you can share about the deals? Purchase price, cash invested, sale price or ARV, rent, financing
Any finally, did any professionals help you with this deal that you would recommend to others? Realtor, lender, title company, contractor, PM, etc
I created this topic in the Fayetteville forum, but I'd love to hear about any deals in Northwest Arkansas: Rogers, Bentonville, Springdale, Centerton, etc
My goal for the year was to acquire my wife and I's first property - which we accomplished back in March!
Buy and hold bought for 160k in Fayetteville with 20% down via conventional financing. Ended up negotiating a few thousand in seller concessions and did some renovations for ~5k. Rents for >$1400 and meets our criteria for a B neighborhood, 3/2 with garage, and not exclusively catered to college students, but could be if needed.
Found it on the MLS, but had to be quick to snap it up. COVID probably worked in our favor to expedite the seller's decision to accept our offer without hearing any others. We plan on continuing with buy and holds until we get 2-3 under our belt after which we will likely switch to more of a BRRRR strategy seeing as most of NWA is teetering on that line of where it doesn't make sense anymore to acquire properties that only need a little love that still cash flow >10%
I found one off mine on the MLS. I'm always looking for fun. Lol. And it was too good to pass up!
The other one fell in my lap. My contractor found it off market. This is the second one he’s brought me. He knows I’ll pay him top dollar so he brings me deals. A win for both of us. Moral of the story: Pay your contractors well. They’ll always have your back when things fall apart and they’ll bring you deals.
Don't worry too much about it. Just keep looking and learning. You'll find something that you can purchase!
We primarily wholesaled contracts this year, but we did end up purchasing a 4 Lot Mobile Home Park that has a permanent unit in place. We rented that permanent unit immediately and are advertising lots for rent. I slacked off on getting the lots rented before so I'm picking up the pace now to improve cash flow.
I too had a goal to purchase my Small multifamily. I had gotten a triplex in escrow at list price, off of Redfin. Once I began my due diligence, the home inspector @Gene Hacker found lots of problems. That with the walk through, I couldn’t see.
The Triplex needed a new roof, moisture in the foundation, Caribbean termites and damage from them. I hired the two specific contractors and a pest control company. I got the quote’s. I subtracted the repairs cost from the list price, and the agent submit my price reduction. Or seller fix repair, seller rejected.
So I agree, buy no deal is better coming out losing as soon as you close. I mean it was in a c neighborhood. But still no lead is worth a slow slope. But I’m still searching. 
I bought a SFH utilizing my VA HOME LOAN in Phoenix AZ.
4 Bed
2.5 Bath
Im currently house hacking my property. All three extra rooms are occupied. Definitely couldn’t be happier with my decision to buy during the Pandemic!
I bought out 2 partners in a partnership and added about 1.2 million across 10 properties to my portfolio. Bought a 4400 square foot cabin on Lake Superior that I renovated and will be opening a LOC as a modified BRRRR instead of getting my cash completely out and I've had 5 bookings in 5 days of it being listed on the normal short term websites. I think in 3-4 years it's really going to be a home run.
I didn’t get to purchase the 2 doors I wanted. But that’s ok! I’m patient. And I’m always ready so here’s to 2021. I did put a new tenant in one of my rentals and it’s been a solid one. I can’t imagine that person moving anytime soon so here’s to having solid long term tenants. I made the decision to reduce the rent. But that was much better choice than to land someone iffy due to covid and having to face evictions.
I’m now venturing out of state and looking into areas like Arkansa and Indiana.
I bought and sold several 1 and 2 acre buildable lots. The goal was to flip for 75% profit. This was a solo operation but I had help with some paperwork stuff.
Great thread @Jennifer Schelkopf and hello from Rogers AR. Love this time of year for goal setting and re-evaluating past goals. Looks like it started as an Arkansas post and ventured out...
We closed 140units in 2020 south of Fayetteville with another 79 set to close Dec 28th. Had a goal off 500 multi family units but will push that goal to 2021. Not quite exactly where we wanted but it we were able to grow our multi family syndication model to investors outside of friends and family and expanded outside of NWA now looking all around Arkansas and Oklahoma to continue growing.
I purchased a single family residence (Seller and their agent represented it as a triplex intially - 690k) this year in January. Upon reviewing the zoning documentation, I discovered that the property was a single family residence, with a permitted accessory dwelling, and a permitted business office. As a result, I negotiated with the seller by threatening to back out of the deal and we agreed upon a purchase price of 625k. Needless to say, the property appraised for 673k at the time.
I have the accessory dwelling being rented out along with the business office at market level rents. I had 35k put into the entire property to get market level rents. I occupy the single family residence portion myself.
After rennovations, the total price tag for the property was 660k and it has recently appraised for 750k. Both units being market level rents have created positive COC, even while me occupying the single family residence portion.
I am under-contract with another property in the Sacramento, CA area. The intially purchase price was 490k. I have negotiated the seller down to 450k, along with the seller supplying a 5k credit, and covering the closing cost. The estimate for rehab is 15k. I am waiting on the appraiser to finish his report currently....fingers crossed.
I am projected to purchase another multi-unit in January, 2021 also targeting the Sacramento area.
Nothing closed in 2020, but under contract to purchase a 38 unit brick courtyard beauty in Chicago early 2021. We were looking at dozens of buildings a month, this was the first one that excited us! We are excited to more than double our portfolio in one transaction.
Congrats on all of your successes in 2020! I love to see other people who have used BP to educate themselves and then implement the strategies.
2020 was certainly interesting for me as well. I started a new company and became a general partner in nearly $20 million in multifamily assets and 190 doors. It's been an incredible journey and I am looking forward to what 2021 has to offer.
I hope everyone out there keeps plugging away and making it happen! Stay safe!
This July I bought a 4plex in Lansing MI for 158k off market from a local investor. Total rents are close to 2800. Cash flow is around 550 a month. All utilities split but for some reason owner still pays water. I didn’t want anyone to leave on my first big purchase so I continued to pay it this year. Will make tenants pay water at start of their next leases and will increase my cash flow of 250 a month making the total cash flow 800 (if I don’t raise rents but a few of the units are very under market rent so I just may). When I bought the building it probably needed 5k of touch up work and maintenance.
In October of this year I got a call from the old owner of the 4plex I purchased and asked if I wanted to but his 3 unit across the street from my 4 plex. I said of course and we struck up a deal. Bought the 3 plex for 102k and partnered with my parents to help pay for it. The rent is 2005 a month and there isn’t much room for rent growth but it should be a good cash flowing asset throughout the years. The cash flow for this property is 490 a month.
This is has been a good buying year and I’m excited to see what 2021 has to offer.
I am still in the process of buying a duplex, and I will finally close on it on the 21st. There are many aspects of this purchase that make it an excellent textbook example of how to go wrong in this business. As soon as it's done, I plan to present the deal for full examination here in the forums.
I purchased a duplex in Ft. Smith right before Covid hit. Had to put 25% down, which was steep, but lenders weren't budging back then. So far, its been going well though (~11% cash on cash, $600 cash flow). Was a little hesitant b/c I really wanted to invest somewhere in the Fayetteville metro, but this opportunity came up so I jumped on it. Now I'm re-focusing my efforts on smaller multifamily (4-12ish units) in NWA.
@Christian Buechel Wouldn't buy and holds be a bad idea in a seller's market (at least its a seller's market here in Oregon)? It seems like investors would want to wait for the market bubble to pop, then buy at the bottom for a buy and hold strategy, no?
@Sam Hemingway I think as a general rule you are correct. I have a standard equation I use when purchasing properties. I will pay up to 60 X monthly rent for purchase and remodel and must be located in a reasonable neighborhood. If I happen to come across deals that still meet that equation then I buy. The problem with a sellers market is that fewer deals meet my requirement. The only danger of buying into a sellers market is if you adjust your requirements to the market. If you hold strong you buy fewer but should still be fine.
That being said, I am definitely in the build up cash mode to take advantage of a pop that may happen in the next several years.
Just my thoughts. That or buying property is like a drug to me and I just need another hit and the above is my justification for taking another hit.
I purchased 1/2 of a duplex with and inherited tenant till the end of the year paying way below rent but I paid 55k and it will need about 10-15k of work. I am talking to the owner of the other half and hopefully will be able to purchase that as well. I am currently working on an extensive renovation of a SFH 3/2 where I will be splitting the lot and selling that for a profit. Both were MLS purchases