All Forum Posts by: George Mevawala

@DuBeaux Dingle it really depends on the agent and what their long term goals are. I am a real estate agent in Scottsdale, AZ and I have invested in over 10 properties since breaking in my real estate career 9 years ago. I know the long term benefits of owning real estate and as you mentioned in your post, it is important to have more sources of income in a commission based job. It is also a dream come true to be able to acquire value added properties and transition them into successful income producing properties.

@Julie Kern very impressive! Congrats and much more success to come in 2019.

@Greg Junge thanks for connecting! I will send you a PM. Thank you.

@Kirk Watkins absolutely. Will email you! 

Investment Info:

Single-family residence buy & hold investment in Scottsdale.

Purchase price: $195,000

Cash invested: $25,000

It was a value add opportunity to buy a 2 bedroom/ 2 bath condo that needed some TLC with breathtaking views of Scottsdale. I acquired the property and complely remodeled ( new floors, new granite, paint, bathrooms, tiled chimney, hardware, doors, sinks and furnishing.) The unit is currently worth around 235k and is now a STR property.

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

I own a fleet of vacation rentals in the Scottsdale/ Tempe market and saw an opportunity based on location and upside potential.

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

I found it on ARMLS ( I am a Realtor) and instantly knew that if I turned this unit that it could be a homerun. I negotiated based off fair market value for this type of product.

How did you add value to the deal?

Completely turning the property ( new floors, granite, paint, doors, hardware, etc..).

What was the outcome?

It is now producing great cash flow, and it should gross around 32-35k on the full first year.

Lessons learned? Challenges?

I learned that you cannot trust every contractor you meet, and that patience is a virtue in the real estate industry. Good things take time, and the more patience you have, the better outcome you will have on your remodel.

@Kellen King Old Town, Kierland, Tempe & Mccormick Ranch.

Hi All, 

I I thought I would start a post to talk about the success that my newest venture has been experiencing in the Phoenix/ Scottsdale market. I currently own/ self-manage a handful of very lucrative vacation rentals in the Scottsdale market and must say 2018 continues to blow me away as I am now booked all the way until the end of  October with all my units. 

If you follow the strategy correctly, you can make an extremely good “cash on cash” return (27-42% depending on debt services). Which in return can bring strong annual returns. I have represented several buyers and helped them in acquiring, furnishing, getting their platform started, and creating their very own rock star vacation rental. ( I also just closed on three single-family homes in the Scottsdale market for my clients).

 It brings me lots of happiness, as I am a “pride of ownership “ kind of guy, and like to see everybody be happy with their investments. I am currently a super host with over 140 (4.9 star reviews on AIRBNB), and this all started with just an idea to try and make some seasonal income. My two most recent units purchased has maintained 91% occupancy since going live in November 2017 and have brought in over 25k each gross in just under 8 months. Not too shabby for under 200k investments. 

Not to mention seen over 11% appreciation each with no rehab costs. If you have any interest in taking a look at the Phoenix market, any questions about how to successfully run/ manage a short-term rental ( in any city), or just want to pick my brain, feel free to reach out. I love hearing other investor perspectives. Hence why bigger pockets has been such a value add to my life! 

I have multiple properties that meet my criteria currently on the market, breakdown of expenses ( cleaning fees, furnishings, operating expenses, etc.) I’m more than happy to chat! 

Thank you, George

@Matthew Kwong I would say my market (Phoenix/Scottsdale/Tempe market) due to low pricing and high returns. Also, On May 13, 2016, the Phoenix Governor Doug Ducey signed into law SB 1350, which prohibits municipalities from banning the listing and use of short-term rentals ( this was really good for our city as there are no longer restrictions on under 31-day rentals, however, HOA's can still step in and enforce the CC&R's).

I will PM you additional information, I see 14-16% annual returns on my properties based on the gross rents and roughly 27-35% annual cash on cash returns. Not too shabby right?

The platform/ STR strategy has been working for me successfully for years now, and we are still seeing very healthy appreciation in our market ( lots of room to go).

@Keith Linne I admire your due diligence and quite frankly you have some very valid points as far as it is definitely a time intensive process to get the first property up and running successfully. However, as somebody that has owned, self-managed and grown a successful portfolio of AIRBNB properties, I just have to add that the STR method ( if strategized correctly) can pull off some huge returns.

My fully furnished vacation rentals (mini resorts is what I like to call them)  kick back great cash flow. Now keep in mind, in my market we have a very strong season which brings in major tourism from Snow Birds during Springtime. We also have no shortage of events, and I am able to gross between 5-7k during peak months. Now the idea is you need to establish your "breakeven" point during slower months.

All the incidentals you mentioned are write-offs as they are supplies for your business and the same property that unfurnished could yield me monthly rents of $1,250-$1,400, now averages out from my STR strategy on average $2,500-$2,750 a month in gross rents. We still need to account for utilities, supplies, and time (self-managing tends to help account for the management fee).  

I still come out ahead about another $800-$1,000 month in "passive income" per unit. Now, these are numbers based on average for my portfolio and I am not inferring that it will be like this for everybody. I just needed to emphasize that it is more than a "side hustle" and one can definitely make a living off STR's if they have a market with tourism, the right mindset, and are willing to put some time into the startup process.

Now with my system built right, I manage all my bookings and coordinations simply from my laptop or Iphone. However, I have really good maids and really good communication and it brings me joy sharing my properties with people from all over the world visiting my city. (Also, negotiated the furniture in a couple of my properties as I became more seasoned and that helped cut that startup cost). Hope that helps you understand a little better!

Best,

George Mevawala

@Jenifer Janniere thank you! I appreciate it, any questions feel free to reach out.