Cave Creek, AZ Value Add Rental in a Hot Market

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Cave Creek, AZ Value Add Rental in a Hot Market

Ryan HooverBusiness Member
Real Estate Broker · Scottsdale, AZ · Member since 2018 · 125 posts · 82 votes

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $333,000
Cash invested: $69,000

Purchased this 1535 SqFt, 3 bed, 2 bath, 1999 build SFH in a great family neighborhood of Cave Creek, AZ. Put 20% down and then completed a full renovation of the interior for an additional $30k. The house was rented out before the project even got completed for $2k a month, which is about $450 a month cash flow after property management and overhead.

[email protected]602-820-3674
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  • Cody Barna
    Real Estate Agent · Member since 2019 · 285 posts · 149 votes
    6y

    @Ryan Hoover came out nice! How would describe the market around Phoenix? Based on the research I've done it appears to lack multi family properties.

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  • Ryan HooverBusiness Member
    OP
    Real Estate Broker · Scottsdale, AZ · Member since 2018 · 125 posts · 82 votes
    6y
    Originally posted by @Cody Barna:

    @Ryan Hoover came out nice! How would describe the market around Phoenix? Based on the research I've done it appears to lack multi family properties.

    Much appreciated!  I would say we are in a very high appreciation market but with a lot of economic tailwind to support this market for some time.  Very high number of out of state buyers are flocking over and there is not enough supply of homes for sale to keep up with demand.  Which is pushing them to rentals and now even apartments have waiting lists for tenants.

    Your other point is true as well, not very much multifamily properties available especially in the 2-4 units.  Most of them were constructed in the 50’s and doesn’t seem to be much growth for new developments of that size. 

    [email protected]602-820-3674
    1Reply
  • Cody Barna
    Real Estate Agent · Member since 2019 · 285 posts · 149 votes
    6y

    @Ryan Hoover I appreciate all of the insight, I've been researching various areas in Arizona for a while and I plan on moving there in the near future. What are you thoughts on Tucson? (Marana, Oro Valley, etc.)

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  • Ryan HooverBusiness Member
    OP
    Real Estate Broker · Scottsdale, AZ · Member since 2018 · 125 posts · 82 votes
    6y

    @Cody Barna I am not that familiar with the Tuscan area, but here there is a lot more small multi-family if that’s what you are interested in.  I already cover majority of the greater Phoenix area and summer/vacation homes in the White Mountains.  Don’t want to spread myself too thin by adding another market.

    Well keep in touch if you are thinking about coming out here to invest and/or live.  Happy to help any way that I can!

    [email protected]602-820-3674
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  • Scott Howie
    Lender · Cave Creek, AZ · Member since 2016 · 6 posts · 4 votes
    6y

    Good afternoon, this is a fantastic blog. I live in Cave Creek and have lived here for 23 years. You did a great job finding that house for that price. And I’m really happy to hear that you’ve got positive cash flow, awesome. In my opinion, values in Arizona are difficult to find, it’s a hyper competitive market. I just keep wondering when we’re going to have a turn in the market, but there are so many people moving to Arizona, I just don’t see it on the horizon. 

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  • Cody Barna
    Real Estate Agent · Member since 2019 · 285 posts · 149 votes
    6y

    @Ryan Hoover that's understandable, I appreciate the help.

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  • Ryan HooverBusiness Member
    OP
    Real Estate Broker · Scottsdale, AZ · Member since 2018 · 125 posts · 82 votes
    6y
    Originally posted by @Scott Howie:

    Good afternoon, this is a fantastic blog. I live in Cave Creek and have lived here for 23 years. You did a great job finding that house for that price. And I’m really happy to hear that you’ve got positive cash flow, awesome. In my opinion, values in Arizona are difficult to find, it’s a hyper competitive market. I just keep wondering when we’re going to have a turn in the market, but there are so many people moving to Arizona, I just don’t see it on the horizon. 

    I’m with you... everyone keeps wondering when we are going to hit the top of this market, but we keep climbing at a much healthier pace than before the housing collapse.  I stay informed with every local economic forecast that I can and most agree this market has some great potential to match this year’s performance in 2021.

    Also can be difficult to find cash flowing homes off the MLS, but they are out there. Hard to find more than a couple hundred dollars in cash flow unless you are willing to perform a renovation. The opportunity cost of waiting longer is a big one though, something that needs to be weighed.

    [email protected]602-820-3674
    0Reply
  • Carlos Gonzalez
    Investor · Phoenix, AZ · Member since 2015 · 346 posts · 170 votes
    6y

    @Cody Barna

    I used to live in Oro Valley. I can tell you is a beautiful place and right in front it’s beautiful mountains. You’ll like for sure!! I did love that please for sure!

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  • Carlos Gonzalez
    Investor · Phoenix, AZ · Member since 2015 · 346 posts · 170 votes
    6y

    @Carlos Gonzalez

    ^place for sure.

    0Reply
  • Cody Barna
    Real Estate Agent · Member since 2019 · 285 posts · 149 votes
    6y

    @Carlos Gonzalez thanks I appreciate the info, what’s the demographic like in that area? Also this question is for anyone living in Arizona, what’s your recommendation for drinking water?

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