Buying at the Bottom and Riding the Wave Up

[Stevan Garcia]

Investment Info:

Single-family residence buy & hold investment in Phoenix.

Purchase price: $107,000
Cash invested: $30,000
Sale price: $205,000

Great momentum property purchased at the right time in a strong market.

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

Phoenix had a lot of single family inventory after the sub-prime mortgage crisis and I bought a text book rental property as this market bottomed out. I rode the wave of recovery as strong population and job growth brought stability to house pricing and rental income growth.

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

I used a real estate network from Los Angeles to make contact with a Phoenix turn-key operator. The introduction was smooth and the transaction seamless.

How did you finance this deal?

Conventional financing with 20% down, 30 year fixed mortgage.

How did you add value to the deal?

I found a great property management company that streamlined operations making me a lot of money throughout the life and exit of investment.

What was the outcome?

I exited with over $100K in cash flow and capital gains realizing 56% annualized returns.

Lessons learned? Challenges?

Buy low, sell high! And if you can buy more when a strong momentum market bottoms out!

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

Valentines Sales & Property Management in Phoenix, AZ.