Avondale AZ Single Family Rental

[Holly McDowell]

Investment Info:

Single-family residence buy & hold investment in Avondale.

Purchase price: $81,000
Cash invested: $40,000

I purchased this house in 2011. The house is currently being renovated prior to prepare it for sale. I anticipate a list price at $250k. There have been a number of unforeseen repairs, which is somewhat to be expected after renting the home for 7 years.

How did you finance this deal?

Traditional bank financing with 25% down.

What was the outcome?

This home has been a very successful investment. Positive monthly cashflow and excellent appreciation.

Lessons learned? Challenges?

It is vital to have a good property management company. The first one I hired did not do well in vetting tenants - resulting in two evictions. The second property management company was substantially better. It wasn't until after the house was vacant that I discovered the PM was not doing annual walk-throughs. The result is lots of broken plumbing and a house in disrepair.