STR Scottsdale investment condo

[George Mevawala]

Investment Info:

Single-family residence buy & hold investment in Scottsdale.

Purchase price: $195,000

Cash invested: $25,000

It was a value add opportunity to buy a 2 bedroom/ 2 bath condo that needed some TLC with breathtaking views of Scottsdale. I acquired the property and complely remodeled ( new floors, new granite, paint, bathrooms, tiled chimney, hardware, doors, sinks and furnishing.) The unit is currently worth around 235k and is now a STR property.

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

I own a fleet of vacation rentals in the Scottsdale/ Tempe market and saw an opportunity based on location and upside potential.

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

I found it on ARMLS ( I am a Realtor) and instantly knew that if I turned this unit that it could be a homerun. I negotiated based off fair market value for this type of product.

How did you add value to the deal?

Completely turning the property ( new floors, granite, paint, doors, hardware, etc..).

What was the outcome?

It is now producing great cash flow, and it should gross around 32-35k on the full first year.

Lessons learned? Challenges?

I learned that you cannot trust every contractor you meet, and that patience is a virtue in the real estate industry. Good things take time, and the more patience you have, the better outcome you will have on your remodel.