All Forum Posts by: Account Closed

Investment Info:

Townhouse buy & hold investment.

Purchase price: $232,500
Cash invested: $278,000

2 Bedroom 2 bathroom single level townhouse in Mesa. Completely remodeled and updated. Approximately 1,150 sq. ft.

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

I live in Mesa, AZ. I have enjoyed purchasing 2-3 bedroom townhomes in the Mesa AZ area. Over the last 10 years I've fortunately been able to purchase 5 of them. My approach has always been to save and purchase them free and clear. In hindsight, I wish I would have leveraged at least a little bit when interest rates were 3%-4%, but now that they are over 6% the only way it makes sense to buy them is free and clear.

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

It was sent to me from a local wholesaler.

How did you finance this deal?

Cash

How did you add value to the deal?

I remodeled it.. (kept existing kitchen cabinets), but replaced all of the vanities in the bathrooms, and installed granite countertops, luxury plank vinyl through out, new light fixtures, added front landscaping, new toilets, shower, tub, new baseboards, light fixtures, garage door, garage door opener, two tone paint, etc...

What was the outcome?

The remodel took longer than I expected.. I was planning on a 6-7 week remodel, but ended up taking 12 weeks, largely due to poor workmanship by one of the contractors. It put it behind and caused a lot of extra work.

Lessons learned? Challenges?

Im happy with the townhome and how it turned out, but I believe I would have been better off holding onto my money at least for the next year or so to see what happens with the market. I think prices are softening, however I dont know how much they will soften.

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

I am a licensed realtor myself, and own a property management company here in the Phoenix area. I represented myself.

Investment Info:

Townhouse buy & hold investment in Mesa.

Purchase price: $119,000
Cash invested: $119,000

2 bed 2 bath single level townhome in Mesa.

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

Same community as my other two units. Already familiar with rents, and community and felt comfortable.

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

MLS Deal. It was listed for $121,000. I offered $119k cash.

How did you finance this deal?

Cash

How did you add value to the deal?

Tenant was already living in the unit. I kept tenant in there. I had no vacancy, and no repairs. Immediate cashflow.

What was the outcome?

Tenants have been there every since.

Lessons learned? Challenges?

I may have been able to aquire the unit for $115,000 but not sure.. Just happy I got it.

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

I represented myself. I am a licensed real estate agent in AZ.

Investment Info:

Townhouse buy & hold investment in Mesa.

Purchase price: $106,000
Cash invested: $106,000

2 bed 2 bath single level townhome in Mesa.

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

Passive Income. It is in the same community as my 1st. investment. I am familiar with the rents, and community already.

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

MLS. It was listed for $115,000. At the time, I knew it was occupied by a tenant. I knocked on the door to see if the tenant would allow me to come in to view the property after I expressed to her that I was interested in purchasing it as an investment and that if I was successful in purchasing it, she could continue to have the option to rent it instead of having to move out. I paid her $20 for letting me view the home. I wanted to see its condition. $106k cash offer, as is. closed in 7 days.

How did you finance this deal?

Cash

How did you add value to the deal?

I kept the existing tenant in there. I had no vacancy and no repair costs.

What was the outcome?

Cashflow for the last 3 years..

Lessons learned? Challenges?

I probably could have offered about $2,500 less than I did and still got it, but hind sight is always 5050.

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

I represented myself. I am a licensed real estate agent in AZ.

Investment Info:

Townhouse buy & hold investment in Mesa.

Purchase price: $152,000
Cash invested: $152,000

3 bed, 3 bath in Mesa. 1200 sq. ft. with fireplace. Remodeled.

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

Trying to add to my portfolio. I like townhomes. 2 to 3 bed townhomes in Mesa. I live in Mesa and my company is based in Mesa. Townhomes have been more affordable for me and I have had a good streak with them.

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

distressed property listed on MLS.

How did you finance this deal?

cash

How did you add value to the deal?

I purchased it for $126,500 and had to rehab the entire unit. I invested around $25,000 in repairs and remodel.

What was the outcome?

Quickly rented to a great tenant. Tenant just moved out, and I re-rented to another great tenant about 2 months ago.

Lessons learned? Challenges?

Just wish I would have purchased more properties a few years ago.

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

I represented myself as I am a licensed real estate agent in AZ.

Investment Info:

Townhouse buy & hold investment in Mesa.

Purchase price: $42,000
Cash invested: $42,000

2 bed 2 bath single level townhome in Mesa AZ

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

Trying to earn passive income. It was an attractive price, and provides a great return. The same tenant has been there since I bought it. Not only have I received my initial investment back in rent, but the unit is now worth approximately $200,000.

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

Foreclosure. Auction purchase.

How did you add value to the deal?

I purchased the property for $42,000 and then rehabed (paint, carpet, countertops, appliances, light fixtures, etc...) for approximately $8,000.

What was the outcome?

Rented quickly for higher, and tenant has been there for over 8 years now.

Lessons learned? Challenges?

I wish I would have leveraged and purchased more properties knowing what the market has done since then.

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

I am a licensed agent.