AZ market is hot both in temperature, and sales.

[Adrian Alfaro]

Investment Info:

Single-family residence buy & hold investment in Yuma.

Purchase price: $149,000
Cash invested: $20,000

this house is a 3/2 with an office and laundry room on a corner lot.

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

It was sitting on the MLS for one year plus, in a good neighborhood, centrally located from all shopping and eateries. Within a 2 mile drive to the Military Base.

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

We did a 1031 Exchange, identified multiple properties to exchange to. We negotiated owner carry for 3 years at 2% with 40,000. Down. Then rolled it into a portfolio loan along with two other properties we picked up at the same time.

How did you finance this deal?

We started with owner carry back loan at 2% for 3 years 30 years Amortized. Rolled it into a portfolio loan from community bank on Year 3.

How did you add value to the deal?

Swapped out aluminum windows with vinyl dual pane. Restuccoed the house, replaced castiron with pvc, upgraded bathrooms.

What was the outcome?

We still have the property. It now has 600/month cash flow.

Lessons learned? Challenges?

Dont try and do all by yourself. Hire other trades to get the project done faster.

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

Janet Cisaneros at Black Hat Realestate Agency. She helped us locate multiple properties below market value.