All Forum Posts by: Corey Martinez

Located walking distance to the Chicago Cubs Sloan Park spring training facility in Mesa, I knew this property would rent extremely well. And IT DID! I made some very minor cosmetic upgrades, successfully rented it short-term for a few months, and then sold it after only 5 months for a 20.7% return! (about 300% cash on cash.)

I cash flowed, cashed out quick, and learned a lot about running an Airbnb!
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What made you interested in investing in this type of deal?

This location near spring training, ASU, Phoenix sky harbor, Scottsdale, etc. was perfect for a short-term rental. I knew the area very well and I wanted the cash flow.

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

FSBO on Zillow. I negotiated a significant reduction in sale price, and the seller paid my closing costs plus a home warranty ;) For Sale By Owner listings just don't get the kind of exposure necessary to sell for top dollar in the least amount of time. I capitalized on a poorly marketed diamond in the rough.

How did you finance this deal?

Conventional financing

How did you add value to the deal?

I made minor upgrades, furnished it, and managed it.

What was the outcome?

Great ROI

Lessons learned? Challenges?

This property sold for a lot more than any of the comps. I had to really explain to the appraiser all of the demand (4 offers in 1 day above ask) and all of the upgrades.

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

myself ;)

1 Vote

Investment Info:

Condo other investment in Mesa.

Purchase price: $183,000
Cash invested: $12,000
Sale price: $221,000

Short-term rental wholetail!

My original plan was to hold this forever. Located walking distance to the Chicago Cubs Sloan Park spring training facility in Mesa, I knew this property would rent extremely well. And IT DID! I made some very minor upgrades, successfully rented it short-term for a few months, and then sold it after only 5 months for a 20.7% return! (about 300% cash on cash.)

I was able to buy it off-market as a FSBO on Zillow. What I thought at the time to be a pretty fair market deal turned out to be a huge win! The Airbnb income was insane, bringing in $4,000/mo during high season ($2,500 cash flow). Then, literally two weeks before Covid-19 hit, I decided to list it on MLS at a high price. Well, I got 4 offers overnight. I was able to sell even as Covid temporarily wiped out the short-term rental market.

For me, it made sense to sell. The location is prime. I know it will appreciate and continue to serve as a great option for Airbnb/VRBO. But, I had some debt and my focus has been on building my net worth (my personal balance sheet). Coronavirus aside, I felt like the market was toppy anyways, so I wanted to see what I could get. Clearly demand far outweighed supply.

I cashed out quick and learned a lot!
Ask me about the hot spots in Phoenix! I'd love to help.