1st Condo Investment Buy and Hold in Scottsdale AZ

5 Replies

Investment Info:

Condo buy & hold investment.

Purchase price: $230,000
Cash invested: $230,000

1BR/1 Bath Condo in North Central Scottsdale. $8k in upgrades to be able to list at $1400 a month rent. Was able to negotiate seller to cover $5500 for new HVAC and $600 for new dishwasher. Expect $50 month cashflow. Property also allows STRs so potential to STR in future. Complex has multitude of amenities and attracts numerous snow birds who rent from Dec-April.

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

The condo is around the corner from my house so I know the area well. It offers both LT and STR opportunities and is a popular area for snowbirds.

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

Found on MLS. The property was in the process of counter offers when I called agent. I offered to pay list price (same as what was being countered) and discounting my buyer's commission by 1%, as well as offering free rent back to owner for 2 weeks.

How did you finance this deal?

Cash from a HELOC. When intro rate of 2.99% on HELOC expires, will complete a cash out refi.

How did you add value to the deal?

Win-Win for myself and seller as he wanted to stay in property past COE and I wanted to begin remodeling. Owner allows me to measure and prep home for remodel. I was able to negotiate new HVAC (even though original one is working) and new dishwasher, saving on rental ready budget.

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

I represented myself as buyer agent

Awesome deal Kathleen! Some partners and I run a STR property management company here and also have a wholesaling business, along with syndicating multifamily deals in South Dakota and the Phoenix area. Would love to connect to see if we could help each other in any way.

Originally posted by @Whit B. :

@Kathleen McDowell do you mind sharing who gave you the HELOC with that intro rate? Congrats on investment!

I was able to get a HELOC with Desert Financial Credit Union. 2.99% is a 1 yr intro rate - goes to just over 4% after that. They are the only one in the area I know of doing HELOCs

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

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.

We hate spam just as much as you