Condo buy & hold investment in Phoenix.
Purchase price: $210,000
Cash invested: $20,500
This house came from an overflow of rental requests for the central Phoenix are. I actually submitted an offer when it first hit the market. The other buyer fell out after inspection & I was called back to see if I still wanted it. Put a little money into to update & furnish it but does extremely well because of one of the rental platforms our company is on. Long term healthcare tenants that are paid by the hospital so, the money is on time every month and upkeep really well.
What made you interested in investing in this type of deal?
I'm always looking for unique, historic but updated homes in the central valley. Like I said, one of our rental marketing platforms is having a high demand for the central corridor so as soon as one popped up for a good price, I hopped all over it.
How did you find this deal and how did you negotiate it?
This was actually a listing by one of my team members on the real estate brokerage who knew I was looking for a downtown high rise.
How did you finance this deal?
Traditional Financing with Quicken.
What was the outcome?
Currently rents long term for $2,500 furnished so, it's a great deal!
Lessons learned? Challenges?
My biggest challenge is the oldest challenge, reliable, good performing contractors. Tried a whole new crew on this one and ended up over spending $5,000 by fixing mistakes from the previous contractors. Went through 3 contractors for the same job on this one. The most available guys sometimes aren't the best. They're available for a reason.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Quicken Loans is the best right now on rates and programs. And I'm an agent so I always represent myself, which makes negotiating 10x easier mostly.
Thanks for sharing Zach. I'm very surprised at the rent! That's like LA prices which I came to Phoenix to escape haha. Good to see condos have potential. Not my target, but will keep that in mind that some investors make it work. Best of luck!
Thanks Austin. Only works for furnished units and temporary tenants. Our other one at Embassy, which is on my page, performs the same and has done well over the last couple of years. Condos aren't for everyone but we developed a specific niche that works for this market in central Phoenix.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you