Single-family residence buy & hold investment in Fayetteville.
Purchase price: $170,000
Cash invested: $4,500
Purchased this home with a VA loan for 4K all in in 2014. Its a cute house in a GREAT school district and currently rents for $1250/mo on 1 year leases (leases same day, sight unseen, any time it's on the market). Building equity to convert to cash-flowing assets in 5-10 years.
What made you interested in investing in this type of deal?
I was a first time home buyer with no experience. It made sense to buy in a great neighborhood near great schools, and now this property is a great equity builder that will probably never be vacant.
How did you find this deal and how did you negotiate it?
Connected with a real estate agent through USAA home buying program. Nothing special, could have gotten a much better deal but this has turned out okay.
How did you finance this deal?
VA loan, Zero down, ~4k in closing.
How did you add value to the deal?
We lived in this home for 4 years and ensured that it was in top-market shape when we were ready to leave Fayetteville.
What was the outcome?
Home rented sight-unseen in <6 hours on the market. Gets 1250/mo which covers expenses, reserves, and property management evenly.
Lessons learned? Challenges?
I walked into this as joe-blow home buyer. I got really lucky because my intuition told me to buy in a good school zone. Moving forward, know who you want to rent to--people who care about where their kids go to school are also people who will likely make responsible tenants.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
My property manager is Lindsey at Nest Managers--she is phenomenal. She manages my BRRRR house also, and will be my go-to for 10 properties I will acquire next year. Go see her!
Awesome. Must be the Jack Britt area.
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