STR Single family home Scottsdale

[George Mevawala]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $650,000
Cash invested: $165,000

I purchased a 4 bedroom/ 2 bath single family home that needed just some minor TLC to get it ready to become a successful STR property, and put 20% down and pumped another 35k into the furnishing and minor updates. The property is now averaging around 7k-8k a month in gross rental income since going live.

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

I have had several successful STR properties in the past, and saw an opportunity that I had a strong feeling would be successful based on the area.

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

It came up on MLS, I was able to negotiate 10k off the list price and then another 5k in seller concessions towards closing costs.

How did you finance this deal?

Conventional financing with 20% down. Locked a 3.625% interest rate.

How did you add value to the deal?

Removed carpet from the bedrooms and added laminate floors, added can lights throughout the house, added bedroom ceiling fans in every room & bonus room, new landscaping, new pool heater & pool light.

What was the outcome?

The outcome was income. The house has already appreciated about 65k since making the improvements in October 2021, and it has been a very lucrative STR property.

Lessons learned? Challenges?

Staying on the timeline for the updates and furnishing was a bit challenging with inventory being on back order.

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

I represented myself on the transaction as the buyers agent, and I used Andrew Narsi with Envoy Mortgage for the financing who I highly recommend.