First Investment Purchase in AZ!

[Brooks Nicholson]

Investment Info:

Single-family residence buy & hold investment in Buckeye.

Purchase price: $265,000
Cash invested: $60,000

Purchased this home and it needs a little bit of work. Estimated around $15,000. Needs new interior paint, new carpet and updated kitchen countertop and appliances.

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

I did a significant amount of research about different areas in AZ then went and visited. Discovered how much growth is actually going on in the areas around Phoenix. Appreciation rates are also high and there is a large number of renters for the growing areas.

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

Zillow - Negotiated the price down $10,000 due to the work that needed to be done in the home.

How did you finance this deal?

Conventional Financing - 20% down.

How did you add value to the deal?

I will be doing a portion of the renovation myself which will lower construction costs and can allow for a higher return.

Lessons learned? Challenges?

Challenges: Difficult to manage property renovations from a different state. Had to go there to see the extent of what needed to be done and point out different problems that I wanted to address.

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

I am a Realtor myself and I did not have a good experience with the agent we worked with in AZ. The $ amount is so low there so the experience and level of care is different than it is in California.

[Erin Estes]

@Brooks Nicholson I’m sorry you had a poor experience with your local realtor.  I am local to Goodyear, Arizona and would love to assist you if you wish to further invest in the area!  We are booming here at the moment and the market didn’t even notice COVID was a thing this past year in 2020.  Projections are keeping 2021 even stronger than the year we just had!  People are really looking for short term rentals that will accept pets because so many people are moving here, not finding anything on the resale market, and having to wait for new builds to be completed before they can move in. Demand is high and supply is low and I’ve been seeing investors  build new just to turn around and rent them out!  It’s really an exciting time here in the West Valley of the Phoenix metro area!  Looking forward to connecting, and have a happy and prosperous 2021!

Erin Estes