Condo Investment Buy and Hold in Scottsdale AZ

[Kathleen McDowell]

Investment Info:

Condo buy & hold investment.

Purchase price: $285,000
Cash invested: $70,000

1BR/1 Bath Condo in North Central Scottsdale. $3k in upgrades to be able to list at $1625 a month rent for. Previous rent was $1300. Will cashflow in Y2. 20% ROI. Current renter plans to rent long term. Property also allows STRs so potential to STR in future. Complex has multitude of amenities and attracts numerous snow birds who rent from Dec-April.

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

The accelerating market in Scottsdale AZ is making home ownership more difficult for a large part of the population. The appeal of 1 1BR condos is they rent fast (I have yet to have any vacancy - always finding a tenant before closing), where 2 BRs tend to sit on market longer. There will always be a need for 1 BRs for young professionals starting out who are priced out of home ownership. This complex is near a hospital and schools. A teacher is renting this one long term.

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

I already owned a condo in this complex so was familiar with it. The HOAs are lower than what you'd pay for pool and garden maintenance on a SFH.

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

I represented myself on this deal, offering 1% back on buyer broker to beat out the competition. The selling agent preferred to work direct with another realtor.