Possible investment property in Mesa, AZ
I am looking at a property in Mesa, Arizona that I'd like to put out here and get some of you all's thoughts. I am not in a position to do anything with this property right now. For me, it's just about learning, practicing running the numbers, and getting ideas. For you, if you're an investor in the area, and you like the property, maybe you wanna snatch it up for yourself! (If you do, I'd love to follow your endeavor and see what you do with it!) So what's your more experienced take on this property be?
65 S Alma School Rd, Mesa AZ 85210
It's got potential to become 3 housing units on one property. The existing 2 units don't seem to need much reno. The workshop in the back would be a complete reno to turn into a 3bd, 2ba unit.
Keep in mind I don't have any experience, and limited resources to base my numbers on, so I'm aware some of my figures may be way off. I don't mind getting corrected. Be kind :)
So I'm figuring the following: Strategy is long term buy and hold. Offer $305,000. $80,000 for rehab, including converting workshop area to a 3bd, 2ba unit. ARV $417,000 (ARV really difficult to guess on due to property not being in a neighborhood). Gross rental income at $3400. Based on my financing options, it seems this property could provide $950/mo cash flow.
I like this property as a rental because of it's location right near the light rail and a few other nearby conveniences. It's not the best area of town, but the individual unit rental prices reflect that. Also guessing the seller is getting more and more motivated seeing as to the recent price drop and how long it's been on the market.
Depending on how this conversation goes I might do more of these in the future as my wife and I continue to learn about REI and practice analyzing properties. Perhaps if I upgrade to pro, which I'm hoping to do sometime soon here, I can share the property analysis as well.
@Shiloh Lundahl any interest in this conversation? Hey, there's an RV park right next door...