Value Add Scottsdale Townhouse with 20% appreciation

[George Mevawala]

Investment Info:

Single-family residence buy & hold investment in Scottsdale.

Purchase price: $183,000
Cash invested: $79,000

Value add townhouse which was acquired for 183k and I put down 25% (45k) for the down payment, and invested 30k into the remodel and furnishing. Current market value is at 255k. We are sitting on around 20% appreciation since remodeling the property in just under 3 months.

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

I target properties that I know are in strategic location with upside potential.

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

It came on the MLS, and I went and toured it within hours of it coming on the market. I negotiated the deal myself.

How did you finance this deal?

Conventional financing with 25% down.

How did you add value to the deal?

New floors, new shaker cabinets, new granite countertops, new backsplash in kitchen, new sinks, new toilets, new faucets, new wall backsplash tile in both bathrooms, new walk in tiled shower, LED light up mirrors, new paint, new electrical outlets, new paint, new windows, new double french doors, new pavers on the outside patio.

What was the outcome?

Based on a recent comp that just sold a few doors down, we are sitting on roughly 42k appreciation, and have it rented out with very strong cash flow.

Lessons learned? Challenges?

Always be patient with your contractors, and know that it will almost always end up taking longer to finish a project than anticipated. We went about 5 weeks over our deadline, but patience is a virtue with real estate.