Updated almost 7 years ago on . Most recent reply
Value Add Tempe Townhouse
Investment Info:
Single-family residence buy & hold investment in Tempe.
Purchase price: $200,000
Cash invested: $70,000
A value add 2 bedroom/ 2 bathroom townhouse strategically located near Arizona State University which is one of the largest universities in the nation. I was able to acquire it at the time ( roughly 2 years ago) for slightly under market value and add some value. Roughly 20k was invested into the entire facelift and now it is producing a high cash on cash return. The property has also appreciated roughly 15% with improvements.
What made you interested in investing in this type of deal?
I saw potential in the location and was looking for a new project.
How did you find this deal and how did you negotiate it?
I found it on the MLS and negotiated the deal myself.
How did you finance this deal?
Conventional financing with 20% down.
How did you add value to the deal?
Complete facelift- new floors, paint, ss appliances, countertops, fans, nest theromostat, hardware, master shower, furnishing and much more.
What was the outcome?
It has appreciated roughly 15% and I have been managing to keep around 25% annual cash on cash returns.
Lessons learned? Challenges?
I have learned to be patient through the remodel process, and all good things take time.