All Forum Posts by: Adam Treece

Greetings,

I have a SFR that I would like to get under an LLC in Arizona - I know it is relatively easy to do online, but would like some professional advice.

Any good recommendations in the Phoenix area (west valley preferably)?

@Pamela Sandberg

If you don’t mind me asking, what strategies have you tried in the area?

I would be curious to explore the corporate draw in the area...seems like a lot of new business moving I to the area, but not sure on the number of out-of-town workers.

I am considering a small SFR as a corporate rental in the Phoenix area and was wondering if anyone else has had success with this strategy?

Thanks @Kory Reynolds and @Scott McIntosh. Both great responses to the question and provide some great insights. 

Seems like OZ investing can be a good tool, but at the same time seems very niche. Thanks for the responses...very helpful. 

Has anyone taken advantage of a Qualified Opportunity Zone investment?

See link for more info - https://www.irs.gov/newsroom/opportunity-zones-frequently-asked-questions#designated

The essence is that you can invest capital gains into a qualifying fund and defer capital gains, even completely diminishing the taxes if you leave the funds invested for a specified period.

If anyone has taken advantage of this, how did you go about it? Also how has it turned out so far? Any advice you would give to someone looking to go this route?

Thanks.

Adam

@Mari Pearce Thank you!

 Namely because I didn't have the best systems in place (poor property mgmt), and the right offer came along. I was able to sell for $84k more than I bought it for just a little over 2 years ago. It was a good introductory property for me, one in which I learned a lot of lessons the hard way unfortunately, but overall it was a great experience and will only help me moving forward.

At the end of the day I was just ready to liquidate and move on to a different investment, one that was a little more stable.

Investment Info:

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

Purchase price: $200,000
Cash invested: $52,000
Sale price: $284,000

Contributors:
Azeez K.

First investment - Purchased while stationed overseas in Japan
4-Units - 2 Bed/1Bath

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

The economy of scale was very appealing to me...I wanted to maximize my ROI for my first investment, while still making a rather "safe" investment.

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

I found this deal through bigger pockets - I posted my introduction in the forums specifying my investment criteria, and I was able to connect with a local agent/investor. Could not have worked out any better! Thanks Azeez!

How did you finance this deal?

Traditional financing with 20% down payment.

How did you add value to the deal?

Replaced the roof, and made some marginal repairs along the way. Most importantly, I was able to get all 4 units filled with tenants and on annual leases. Prior to me purchasing the property, most tenants were on a month to month lease which in some units was not even documented. Getting vetted tenants on leases enabled me to sale the property this past fall.

What was the outcome?

I was able to almost double my initial investment, gained some practical experience, and now have more confidence investing in the future. Getting my feet wet was just the start I needed. I would say the biggest positive outcome though, was making my wife a believer in real estate investing - initially she was very skeptical. (Thankfully she trusted me enough to make the initial investment)

Lessons learned? Challenges?

Biggest lesson learned is your team on the ground is critical ***especially your management team***...I cannot stress this point enough.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

If you are looking to invest in the greater Atlanta area, Azeez K. is just the person you are looking for! He was outstanding in helping me purchasing and selling the property!