My third vacation rental property in Lake Havasu City, AZ

[Betty Snowie]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $275,000
Cash invested: $170,000

Three bed, 2 bath home. This home was completed renovated inside and out in 2019. Inside I created an open concept kitchen/living room, redesigned the master bath, replace all flooring, custom cabinets, completed renovated the guest bath, painted in/out, added stone base to outside. Added heated pool, putting green, horseshoe pit, two bocce ball courts, fire table, & gazebo. There is an attached 3-car garage plus paved side parking for even more toys.

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

Adding to my portfolio of vacation rentals.

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

Good realtor keeping an eye out for something with my specifications: close to home being primary, size, age, and in need of renovations.

How did you finance this deal?

Cash.

How did you add value to the deal?

I did more than originally planned. Demo'd all flooring, took down a wall between the kitchen and living room, did a total redesign of the master bath, complete paint, total renovation of the backyard including adding a pool, putting green, bocce ball courts, horseshoe court, gazebo and patio for fire table. Also just recently changed to a whole house water system H20 Concepts. I was thinking re-sale for that upgrade as well as cutting out the required maintenance for the water softener & R/O.

What was the outcome?

This is the first year it has been available. I had snowbird renters lined up and they have committed to returning next year at a higher rate. The summer rentals have been off the charts! Even is someone cancels, it's rebooked within 12-24 hours!

Lessons learned? Challenges?

The challenges in this area, especially since covid, is finding the deals. At this time there is extremely low availability at any price range, and those that are on the market are generally snapped up by out of state buyers looking for their personal vacation homes. An escape from being isolated in their homes.

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

I have been working with Jon Groth with Coldwell Banker.