First Project as Architect - Developer!

[Scott Janicek]

Investment Info:

Single-family residence buy & hold investment in Show Low.

Purchase price: $215,000
Cash invested: $50,000

Acting as Architect - Developer, purchased and remodeled a SFH in Show Low, AZ and currently operate it as a short-term rental.

Estimated market value-add ~$50k, projecting close to 25% CoC after first year.

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

I found the home through MLS. Primary strategy to negotiate with seller was to get them close to what they're asking while eliminating as much cash to close as I could.

We did an asking price deal with a $5k credit. We were able to maneuver the credit to not only cover standard closing costs, but also prepaid for paint and other expenses for the remodel to burn up the full $5k plus additional post-inspection credit.

How did you add value to the deal?

DIY remodeling and furnishing!

Lessons learned? Challenges?

- Get creative when making offers and don't accept what your realtor, lender, title company are telling you is possible at first.
- Minimize cash upfront as much as possible, particularly with rates as they are
- DIY what you can, but pay local pros where it saves time and backache. For me, I'm cool fixing vanities, swapping outlets, drywall, but not painting the exterior.