Long Term Buy and Hold Value Add in Surprise, AZ

[Ryan Hoover]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $435,000
Cash invested: $150,000

Found this value add home in an upcoming area of Surprise, AZ. I was able to take advantage of a small dip in mortgage rates to lock in a 4.99%. We immediately went to work for a full remodel on this property to open up the space, improve the functionality and bring the interior up to todays standards.

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

MLS property on the market for 45+ days

How did you finance this deal?

Conventional 30 year fixed

How did you add value to the deal?

Complete remodel. Left the cabinets as they were in good shape.

What was the outcome?

Cash flowing in year 1 is about the best one can hope for in this market.

Lessons learned? Challenges?

Timing a market is always challenging... if I waited a few months I could have got a better deal from a purchase price perspective, but the rates are now significantly higher. So the overall cash flow would be about the same.