Tucson Medium Term Rental

[Chirag Parikh]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $465,000
Cash invested: $133,000

3/2 House with an ADU studio apt newly renovated
Currently run as a medium term rental
Pure cash flow of $300/month
Pending Value adds: ADU kitchenette renovation, and a 4th bedroom which will have it's own bathroom also to be renovated. Both will allow for increased cash flow. Will perform cashout refinance once projects are complete to improve cash on cash return.

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

Cashflows as a long term rental, had an ADU which combined with value add renovations with another room in the house will allow for significant appreciation, plus will be able to hold and cash-out refinance.

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

MLS, negotiated down the sale price, also was able to get seller concessions to help bring monthly interest payments down.

How did you finance this deal?

Conventional

How did you add value to the deal?

Pending, but will add a bathroom to a room not currently used for rent, and will add kitchenette to studio ADU

What was the outcome?

Currently cashflowing without renovations, will cashflow even better with renovations

Lessons learned? Challenges?

Bought the house renovated, contracting work was okay but many places where things could have been done better.