1,024 square foot, 2 bed, 2 bath, condo right next to Embry Riddle University. Nicely renovated by the Seller's son and ready to go. The luckiest turnkey first investment we could hope for.

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

My wife and I go to visit Prescott very frequently. The rental demographics are largely made up of three broad groups of people. retired empty nesters, Embry Riddle students, and middle class working families.

Between a place we love to visit, demographics we understand and relate to, and the economics in Phoenix being completely out of whack to purchase a long term rental, Prescott was a natural fit.

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

Our family knows the seller and referred us as potential buyers. Sellers needed flexible closing date since their son's deployment was still TBD when we negotiated the deal. We decided to close in 30 days and give a lease option to the son should he need to stay.

How did you finance this deal?

Conventional mortgage with 30% down. We had cash burning a hole in our pocket from the sale of our primary residence and we wanted to ensure the property would cash flow. We'll probably end up pulling some additional cash out later.

How did you add value to the deal?

This one was fortunately turnkey. We did the deal with no commissions to lower the purchase price and 'add' some additional equity to our side of the deal. Finally, we're choosing to manage this one ourselves.

What was the outcome?

The property appraised for $275,000; giving us a nice starting additional equity position of $25,000. A tenant is scheduled to move in at $1,800 per month at the beginning of 2022.

Lessons learned? Challenges?

Simple things in the property management process, particularly when being managed from a distance and you are first starting up, are harder than we realized. Tenant showings, maintenance coordination, and even utility set-up.

Now that we're up and running, we definitely are going to stick to Prescott so we can leverage the platform we've built up.

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

We self-performed everything other than the loan & title work. Stephanie Reid @ ACM Loans is an absolutely amazing broker. Trista Peare @ Old Republic Title is quite possibly one of the best title and escrow agents in town.