Long term value add STR property in Old Town Scottsdale

[George Mevawala]

Investment Info:

Single-family residence buy & hold investment in Scottsdale.

Purchase price: $156,000
Cash invested: $176,000

Value add STR property located in Scottsdale, AZ that has been operating since late 2016 and has produced over 30k in annual gross rental income ever since going live. It averages over a 90% occupancy rate each year, and has been both an appreciation and cash flow play. Currently worth around 230k market value.

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

I saw an opportunity based on the location, and price point.

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

It came on the market, and I was one of the first investors to tour it.. I negotiated very strong as we were a fast closing and very strong initial offer.

How did you finance this deal?

No financing.

How did you add value to the deal?

New floors, kitchen, bathrooms, carpet upstairs, appliances, patio, furnishings and paint.

What was the outcome?

Became a popular STR property that has continued to stay booked since going live. We have seen roughly $50,000 in appreciation ( 30% return ) and also yielded very strong cash flow.

Lessons learned? Challenges?

I learned to take my time with all my future investments. We did really good on this first investment based on timing, but also now take more time with my designs and finding the right contractor.