Cave Creek, AZ Value Add Rental in a Hot Market

[Ryan Hoover]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $333,000
Cash invested: $69,000

Purchased this 1535 SqFt, 3 bed, 2 bath, 1999 build SFH in a great family neighborhood of Cave Creek, AZ. Put 20% down and then completed a full renovation of the interior for an additional $30k. The house was rented out before the project even got completed for $2k a month, which is about $450 a month cash flow after property management and overhead.

[Ryan Hoover]

Originally posted by @Cody Barna:

@Ryan Hoover came out nice! How would describe the market around Phoenix? Based on the research I've done it appears to lack multi family properties.

Much appreciated!  I would say we are in a very high appreciation market but with a lot of economic tailwind to support this market for some time.  Very high number of out of state buyers are flocking over and there is not enough supply of homes for sale to keep up with demand.  Which is pushing them to rentals and now even apartments have waiting lists for tenants.

Your other point is true as well, not very much multifamily properties available especially in the 2-4 units.  Most of them were constructed in the 50’s and doesn’t seem to be much growth for new developments of that size.