All Forum Posts by: Jesse Watson

We are self managing remotely from the Seattle area. Our cleaners are a big part of the magic: Precision 360. Also a great handy man. @Scott E.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $581,000
Cash invested: $181,000

Purchased a 3 bed / 2 bath SFH in Scottsdale for use as a med / short term furnished rental.
Conventional Investment loan, 20% down, 4.125%
Lots of landscaping, new front walkway, decor makeover.

Here were our expenses:

Down Payment -$119,325.13
Furnishings and Household Items -$36,852.09
Interest & Fees -$555.59
Marketing -$400.00
One Time Professional Services -$11,570.08
Remodeling -$11,177.49

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

Doubling down on an area where we'd purchased our vacation home... Enabled us to utilize a proven process and a team we had already established. STRs cashflow nicely in Scottsdale.

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

Realtor found it. Went on the market mid-week and sellers were motivated to move quickly, so we got mutual acceptance without a bidding war.

How did you finance this deal?

Conventional investment loan

How did you add value to the deal?

Landscaping renovation, front walkway, lots of interior touches and tweaks.

What was the outcome?

So far, we have a 4 month lease with some renters - cash flowing an average of $1391 / mo.. after that we will see!

Lessons learned? Challenges?

Get multiple bids on every job. If a contractor isn't working out, let them go quickly and find a replacement.

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

Our realtor Melanie Johnston is the best in Scottsdale!!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $581,000
Cash invested: $181,000

Purchased a 3 bed / 2 bath SFH in Scottsdale for use as a med / short term furnished rental.
Conventional Investment loan, 20% down, 4.125%
Lots of landscaping, new front walkway, decor makeover.

Here were our expenses:

Hillery - Down Payment -$119,325.13
Hillery - Furnishings and Household Items -$36,852.09
Hillery - Interest & Fees -$555.59
Hillery - Marketing -$400.00
Hillery - One Time Professional Services -$11,570.08
Hillery - Remodeling -$11,177.49
Hillery - Travel - Food -$328.43
Hillery - Travel - Gas -$348.45
Hillery - Travel - Lodging -$367.39

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

Doubling down on an area where we'd purchased our vacation home... Enabled us to utilize a proven process and a team we had already established. STRs cashflow nicely in Scottsdale.

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

Realtor found it. Went on the market mid-week and sellers were motivated to move quickly, so we got mutual acceptance without a bidding war.

How did you finance this deal?

Conventional investment loan

How did you add value to the deal?

Landscaping renovation, front walkway, lots of interior touches and tweaks.

What was the outcome?

So far, we have a 4 month lease with some renters - cash flowing an average of $1391 / mo.. after that we will see!

Lessons learned? Challenges?

Get multiple bids on every job. If a contractor isn't working out, let them go quickly and find a replacement.

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

Our realtor Melanie Johnston is the best in Scottsdale!!

Arizona. Thanks in advance.

@Dmitriy Fomichenko - thanks much! @Melanie Johnston - right back atcha! Excited to have a second one almost done now and looking forward to many more!

Investment Info:

Single-family residence buy & hold investment in Scottsdale.

Purchase price: $606,000
Cash invested: $130,000

Short term rental in Scottsdale AZ, remotely self-managed from the Pacific Northwest
https://www.airbnb.com/rooms/48906241

So far, all five star reviews and we haven't had any true emergencies (knock on wood). We've been enjoying giving people a great experience on their vacation and interacting with guests (more than we expected). Also, through a lot of foresight and planning, we've managed to make remote management fairly automated.

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

Looking to maximize cash on cash passive income.

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

Stellar realtor plus the MLS. It was a very competitive seller's market, so we had to sweeten the deal with appraisal gap coverage.

How did you finance this deal?

Second home loan (and yes, we use it as a second home).

How did you add value to the deal?

We remodeled a bathroom down to the studs, in the other bathroom, replaced vanity, mirror and lighting. New electrical panel, pool heater, and above-average furnishings. Over a dozen tiny upgrades and details, but no huge construction required.

What was the outcome?

20%+ cash on cash after the first two months

Lessons learned? Challenges?

Use a designer experienced with short term rentals. Hire licensed electricians only. Test your contractors / handy people out on small jobs first, and ask pointed questions before assigning tasks to determine not only if they are "comfortable" doing the work, but ask: "How many times have you done this specific type of job, and can you show me pics of the end product?"

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

Melanie Johnston in Scottsdale is the best realtor we've ever worked with, period. If you need a tile guy in Phoenix, Scottsdale, Margarito is the best (DM me for his info).

Hi! My wife and I live in Edmonds, WA, and we own and operate one STR in AZ and we are working on buying our second property (likely in PA or FL).

Thinking ahead to our third property we want to explore a partnership model and we need some education and guidance for how to structure things safely for all parties involved. Likely this would be an LLC with a Joint Venture agreement, but we have to ask some stupid questions and we're having trouble finding much concrete information out there on how to structure partnership deals (the advice is always "Any way you want to!" ... not so helpful).

So looking for any referrals to good attorneys with experience in this space with whom folks have had good experiences.

Thanks!

-Jesse

PS - Bonus question: Since we are based in WA, and would be operating the LLC from WA, so we assume a business attorney with real estate experience based in WA state is the way to go, even if the properties are elsewhere- please correct us if we are mistaken!

Just a shout-out here for Melanie, who helped us purchase our 3 bed / 2 bath in Scottsdale -- she's the best!

(And yes, Scottsdale is an awesome area for STRs in my opinion, if you can find the right price point.)

Hey thanks to everyone for your suggestions! We're still doing research, but are leaning toward self-managing based on yours' and others' input. Really appreciate it!