Yuma Townhouse (Pandemic-June 2020 Closing)
Investment Info:
Townhouse buy & hold investment in Yuma.
Purchase price: $130,000
Cash invested: $29,000
Three bedroom/ two bath townhouse with one car garage.
What made you interested in investing in this type of deal?
I had just sold my first house and knew I need to invest in a new property.
How did you find this deal and how did you negotiate it?
I contacted a local property manager/ realtor who had attempted to find a rental for me when I moved to Yuma, AZ. My new build almost fell through and the manager was very quick to help me find a place to stay.
She had just inherited this property from a out of business property manager and the owner wanted to sell due to the pandemic and a poor relationship with the previous property manager.
It was already occupied with a C- tenant (always paid late, but paid), needed a new roof and AC unit.
How did you finance this deal?
Conventional Loan
How did you add value to the deal?
New roof, new AC, stucco repair, interior and exterior paint, kitchen remodel.
What was the outcome?
I currently cash flow roughly 400 per month based on my new tenant. I have paid 10,000 for remodel, 5,500 for the roof, 4,200 for the AC, 2,700 for the stucco and paint out of pocket. Now that the repair are complete I plan to cash out refinance and purchase my next rental. Repairs and rapid appreciation have greatly assisted the next investment.
Lessons learned? Challenges?
Don't do your own work... Hire contractor and get written bids.