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Real Estate Deal Analysis & Advice

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Jesse Watson
  • Investor
  • Edmonds, WA
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First Short Term Rental in Scottsdale AZ

Jesse Watson
  • Investor
  • Edmonds, WA
Posted Dec 2 2021, 10:24

Investment Info:

Single-family residence buy & hold investment in Scottsdale.

Purchase price: $606,000
Cash invested: $130,000

Short term rental in Scottsdale AZ, remotely self-managed from the Pacific Northwest
https://www.airbnb.com/rooms/48906241

So far, all five star reviews and we haven't had any true emergencies (knock on wood). We've been enjoying giving people a great experience on their vacation and interacting with guests (more than we expected). Also, through a lot of foresight and planning, we've managed to make remote management fairly automated.

What made you interested in investing in this type of deal?

Looking to maximize cash on cash passive income.

How did you find this deal and how did you negotiate it?

Stellar realtor plus the MLS. It was a very competitive seller's market, so we had to sweeten the deal with appraisal gap coverage.

How did you finance this deal?

Second home loan (and yes, we use it as a second home).

How did you add value to the deal?

We remodeled a bathroom down to the studs, in the other bathroom, replaced vanity, mirror and lighting. New electrical panel, pool heater, and above-average furnishings. Over a dozen tiny upgrades and details, but no huge construction required.

What was the outcome?

20%+ cash on cash after the first two months

Lessons learned? Challenges?

Use a designer experienced with short term rentals. Hire licensed electricians only. Test your contractors / handy people out on small jobs first, and ask pointed questions before assigning tasks to determine not only if they are "comfortable" doing the work, but ask: "How many times have you done this specific type of job, and can you show me pics of the end product?"

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Melanie Johnston in Scottsdale is the best realtor we've ever worked with, period. If you need a tile guy in Phoenix, Scottsdale, Margarito is the best (DM me for his info).

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