Updated almost 3 years ago on . Most recent reply
Buy & Hold + Value Add Strategy near University
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $408,000
Cash invested: $140,000
Complete renovation of the property. Converted outdoor workshop into casita / studio apartment with full bathroom, walk in closet, and living area. Renting a long term rental (LTR) and generating $2500+ / month in cash flow.
What made you interested in investing in this type of deal?
The property is less than 0.5 mile from Arizona State University. Rents in the area are over $900 / room for newly renovated homes. Instead of doing a lease by room, the strategy being used is to create one lease with co-signers for all residents.
How did you find this deal and how did you negotiate it?
MLS... negotiated a $8k seller credit
How did you finance this deal?
Conventional Investment Loan
How did you add value to the deal?
Complete renovation of every square foot. Includes raising low soffit ceiling, all new kitchen, appliances. Converted existing onsite workshop to studio apartment unit with full bathroom and walk in closet.
What was the outcome?
Currently renting as a LTR and cash flowing over $2500+/month
Lessons learned? Challenges?
Understanding the limits of renovation not to over renovate for the area.