Real Estate Deal Analysis & Advice

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Sarah Bull
  • Real Estate Agent
  • Northwest Arkansas
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Fayetteville, AR - College rental - buy & hold investment

Sarah Bull
  • Real Estate Agent
  • Northwest Arkansas
Posted Jan 17 2022, 12:40

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $366,500
Cash invested: $73,300

Investment property near the University of Arkansas. Built in 2020, should be minimal upkeep for a few years. 4 bedrooms are leased to college students. The monthly rent is 2,800 ($700 per student). This investment has a cap rate of 6.88%. The cash-on-cash return, after a 20% down payment, is 10.11%. Monthly cash flow after expenses is $660. Couple these returns with the high appreciation rate of the area (NWA experienced 14% appreciation rate during 2021) and it's a good one!

Lessons learned? Challenges?

There is a higher monthly HOA fee that cut into the monthly cash flow a bit. This HOA fee is to completely take care of everything outside the home, good for college students and the preservation of the curb appeal and value of the investment.

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Will Fraser
  • Real Estate Broker
  • Salt Lake City, UT
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Will Fraser
  • Real Estate Broker
  • Salt Lake City, UT
Replied Jan 17 2022, 12:56

Atta girl, @Sarah Bull, and a big WPS to you!

Who was the builder on this cash cow?

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Sarah Bull
  • Real Estate Agent
  • Northwest Arkansas
5
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17
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Sarah Bull
  • Real Estate Agent
  • Northwest Arkansas
Replied Jan 17 2022, 13:03

Thanks Will! Builder was Trademark Homes.

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Will Fraser
  • Real Estate Broker
  • Salt Lake City, UT
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Will Fraser
  • Real Estate Broker
  • Salt Lake City, UT
Replied Jan 17 2022, 13:13

Awesome!  How was your experience with them overall?