JMS Real Estate, LLC

JMS Real Estate, LLC Stories of running a small real estate investment business in Northwest Arkansas.

11/26/2021

Checking out a friend’s property in Texarkana - quite the deal!

What do you think - diamond in the rough?This little house is walking distance to restaurants and bike parks in downtown...
10/01/2021

What do you think - diamond in the rough?

This little house is walking distance to restaurants and bike parks in downtown Rogers. But it needs a LOT of work, and the sellers are asking $165K. We're going to take a look this weekend.

Great news for real estate investors in NWA; the Skyline Report notes low vacancy across the region. Two things stand ou...
09/29/2021

Great news for real estate investors in NWA; the Skyline Report notes low vacancy across the region. Two things stand out to me about this: we shouldn't have any trouble renting our properties, and we may be able to get higher rent than we expected.

Investors who haven't raised their rents in years: it's time!

Can I tell you something? Michael and I used to be too tired at the end of the day to cook much. Now that he’s focusing ...
09/21/2021

Can I tell you something? Michael and I used to be too tired at the end of the day to cook much. Now that he’s focusing on real estate investing full time, and we’re both cutting back on work hours, we’re having so much fun together. We cook meals from scratch almost every day, and I looooove it! I feel so lucky. Tell me, what’s good with you lately?

🎉 Introducing Elm St Apartments 🎉We 1031-exchanged our Lake Hamilton property for this funky, historic quadplex in Fayet...
09/11/2021

🎉 Introducing Elm St Apartments 🎉

We 1031-exchanged our Lake Hamilton property for this funky, historic quadplex in Fayetteville. The property has been extensively remodeled and already has tenants in place. It’s part of our strategy to consolidate our properties nearer to where we live, and do the property management ourselves.

♟ The Strategy

Since the property has been recently remodeled, we don’t need to do much with it. But since this is our first property ready to self-manage, we’ll be focused on setting up systems and processes. We'll hold this property for a long time.

🧮 The Numbers
List price: $460,000
Purchase price: $440,000
Repair cost: $0
Projected rent: $3,625
Cash flow: $1,153
CoC ROI: 6%

Photos are from the previous owner's marketing listing.

Michael and I recently sold the biggest property in our portfolio: a historic 5-unit lakefront property on Lake Hamilton...
08/28/2021

Michael and I recently sold the biggest property in our portfolio: a historic 5-unit lakefront property on Lake Hamilton. It was a tough decision to sell it, but ultimately we decided to consolidate our portfolio nearer to our home in NWA (and take advantage of the hot market).

We sold the property for $400,000, realizing a capital gain of $104,000 or 11.6% annualized over the holding period. If you’d like to see more numbers and our lessons learned, check out this post on BiggerPockets: https://www.biggerpockets.com/forums/850/topics/980480-historic-mfh-lake-property-in-popular-tourist-town

Attached are some pictures of fun times while we were working on the property.

We're working on removing wallpaper at Greenbriar. Our fav tool so far: 4-in floor scraper
07/18/2021

We're working on removing wallpaper at Greenbriar. Our fav tool so far: 4-in floor scraper

🔥 Compare properties to quickly build your investor intuition 🔥Michael and I had been landlords for 6 years when we move...
07/09/2021

🔥 Compare properties to quickly build your investor intuition 🔥

Michael and I had been landlords for 6 years when we moved to NWA, but we had no idea what a good deal looked like in the area. Like new investors, we needed to analyze a LOT of deals to build our intuition. It was a slow process until we started **comparing** the analysis.

Try this:
* Pick a systematic method for analyzing properties. There are a lot of great resources online for this - my favorites are here: https://www.facebook.com/jandmrealty/posts/101846252180560

* Analyze a couple of deals each week (or to really move fast, do it every day)

* Put the results in a spreadsheet

* Each time you analyze a deal, compare it to your previous results. Does that Springdale SFH cash flow better or worse than the similar one in Rogers that you looked at last week?

Doing this ramped up our learning curve very fast. Give it a try, and see if it works for you!

If you’re interested in real estate investing the first skill to develop is analyzing deals. Here’s a few of my favorite...
07/09/2021

If you’re interested in real estate investing the first skill to develop is analyzing deals. Here’s a few of my favorite resources for learning how:

* Analyzing the deal with Ryan Blackstone at Blackstone & Company - Keller Williams Market Pro Realty. Presented at REI-NWA, a great local resource for rookie or experienced local investors. I personally use a spin-off of Ryan’s spreadsheets. Link: https://www.youtube.com/watch?v=yL-k4haq03k

* How to Analyze a Rental Property (No Calculators or Spreadsheets Needed!) with investor Chad Carson. Chad is my favorite blogger/youtubber for actionable advice. Link: https://www.youtube.com/watch?v=ExFWAYXr11s

* Finding and Funding Great Deals with Anson Young. The chapter on evaluating deals is particularly good, achieving a good balance of detail and approachability. The rest of the book is equally good as well. Link: https://www.amazon.com/Finding-Funding-Great-Deals-Hands-ebook/dp/B07N8KSR9P

🎉 Introducing 1609 Greenbriar 🎉This little house in Springdale is our first rental in NWA. It needs a lot of aesthetic ...
07/08/2021

🎉 Introducing 1609 Greenbriar 🎉

This little house in Springdale is our first rental in NWA. It needs a lot of aesthetic updates, but it has great bones.

We found this deal through MLS, and financed through a conventional 30-year mortgage on the secondary market with 25% down.

♟ The Strategy

We’ll bring this house into 2021 with new flooring, countertops, and fixtures. Then we’ll hold it for a loooooong time as a rental, using the cash flow to diversify our income.

We selected this house because it’s low maintenance (brick exterior, simple roofline, no big trees overhanging the house) and functional (efficient layout, no odd choices) in a good neighborhood (B class, safe, close to a park, rising property values).

🧮 The Numbers

List price: $219,000
Purchase price: $205,000
Repair cost: $13,000
Project rent: $1,500
Cash flow: $326
CoC ROI: 6%

🏁 What’s Next

Demo! Stay tuned for in-progress photos.

Welcome to J&M Realty, a small Arkansas real estate investing business. Don’t forget to like or follow us to hear storie...
07/08/2021

Welcome to J&M Realty, a small Arkansas real estate investing business. Don’t forget to like or follow us to hear stories of analyzing deals, rehabbing, property management, and more.

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Bella Vista, AR

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