Thinking out of California

[Grace Solano]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $395,000
Cash invested: $39,500

We were dreamed buying home in California, but we just turned our around. We bought a brand new property in Queen Creek, AZ. This area is going to grown big in next few years.

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

S. California is just not affordable for us, but we still loved living here. We were able to buy home in AZ and living in a rental in Calif.

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

Lots of research first through Zillow , real estate agent, and family members led us to Queen Creek and New home constructions. The home was on the market for over 200 days, the builder offered 15,000 discount.

How did you finance this deal?

The builders loan couldn't approve us for the amount we need to get, but we had a loan broker find a loan for 10% down DSCR with a 2nd home status instead of investment home.

How did you add value to the deal?

The builder had a given us the paved yard, Granite kitchen top, washer and dryer at added value with no charge. I didn't add anything else on top.

Lessons learned? Challenges?

This was my first home purchase, out of state. I bought newly built home and I don't think I need to do any work few years. However, the rental value this area is very low compared to the Home values and mortgage rate.