Updated over 4 years ago on . Most recent reply
2021 Phoenix Condo Investment Snapshot
Investment Info:
Condo buy & hold investment in Phoenix.
Purchase price: $246,000
Cash invested: $22,300
2 bedroom 2 bath condo at Laronatta in North Phoenix/Scottsdale border. Purchased as a buy and hold in 2021 with a seasonal rental in mind. After operating for a year we are showing a gross revenue of about $31,200 with a monthly cashflow after PITIA + Capex + Vacancy of about $800. This is a minimum 3 month rental and has been 100% occupied this year.
What made you interested in investing in this type of deal?
I had heard from several people that the seasonal rental market in North Scottsdale/Phoenix catered well to the retirement group which is growing at a rapid pace in the area. As a passive investor I have a few things that I target outside of the financial metrics. Low vacancy, low maintenance, safety & security, proximity to shopping and dining, first floor, and surrounded by investment. This deal hit every marker, it was truly a no brainer.
How did you find this deal and how did you negotiate it?
I found this deal on the MLS. I came in at list price and asked for minimal repairs. I am a real estate agent myself so that piece was easy to navigate. My lender helped me to stand out by calling the listing agent and detailing his confidence in my ability to perform on the terms we'd agreed to.
How did you finance this deal?
Conventional financing with 5% down. I seasoned funds from a HELOC for both the down payment and the reserves.
How did you add value to the deal?
We did nothing to truly add value. Our improvements to date were to change out all angle stops and to hire cleaners to deep clean.
What was the outcome?
Right now we are thrilled with the investment. Both the value of the property and the rents themselves have increase upwards of 25% in this crazy year. The cashflow projections we had for it have been blown out of the water.
Lessons learned? Challenges?
Move QUICKLY when you find a deal that makes sense.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I'd like to take this opportunity to recommend myself. I did a great job for me. I could probably do a great job for you too :)
