All Forum Posts by: George Mevawala

What would you be putting down? I am assuming roughly 20-25% down payment? I would request to see the leases and when they expire, and get an idea of how much the remainder units need in renovation budget... From initial look, it seems like an "okay deal" if it really truly has 10k in gross monthly income. I would try and keep my monthly nut ( mortgage + all operating expenses ) around 6k/month and then plan for CapEx and some vacancy as well. If you could truly cash flow around 2-3k month, and you could fetch at least a 20% annual cash on cash return then it may be worth pursuing.

@Herman Fox Option 2 allows you to put your money more to work. I would use the equity from the sale of your primary residence in CA to purchase 2 properties in AZ.. One as a primary residence ( still mostly buyers market currently & could find you a property with a motivated enough seller to get you some seller concessions towards closing costs and contribute to the rate buy down as well), and then purchase an investment property and turn it into a short term rental shortly after... You could still see some nice returns self managing it since you will be local, as we have lenient short term rental laws. Then you will be able to see the appreciation from both properties, cash flow from the STR, and tax benefits of owning the short term rental as well. Just my two cents for whatever it's worth. Feel free to reach out if you have any questions or would like to chat more. Best of luck!

Investment Info:

Condo buy & hold investment.

Purchase price: $195,000
Cash invested: $33,129

Value add condo I purchased with purpose to remodel and turn into a short term rental. It has been a successful property that has been booked solid the last 4 years and brings in around 45k a year in gross rental income.

Not only have was it a successful BRRRR ( we pulled out over double our initial investment when it appraised for 357k in 2021), the complex has had similar units sell as high as 490k in the complex.

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

I saw an opportunity to add value in a condo that was priced well at the time, and in a complex that allowed short term rentals.

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

It was on the MLS and I negotiated it.

How did you finance this deal?

Conventional financing, but I brought in a partner to help with the project.

How did you add value to the deal?

I negotiated the deal as the buyers agent, and then managed the remodel, design, and furnishing for project.

What was the outcome?

The outcome was income as I like to say, and the property has been one of my most successful condo investments so far, and brings in steady cash flow as a short term rental property.

Lessons learned? Challenges?

We had some issues with the first contractor we hired, and had to fire him about 3 weeks into the remodel.. It was frustrating and it cost us a little more than we wanted to spend. However, it was a great learning curve and one of the most hands on projects I have been involved in.

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

I represented as buyers agent on this transaction.

Thank you @matt Greer

Investment Info:

Condo buy & hold investment.

Purchase price: $127,000
Cash invested: $35,000

1 bedroom with loft/ 1 bathroom condo I picked up during mid 2020 that has doubled in value and is worth around 250k ( January 2023). It is my one long term rental which cash flows roughly $450/ month and is also on a 15 year loan so it paying off quickly.

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

I saw a steal of a deal during covid.

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

It was on MLS and I negotiated it directly for myself.

How did you finance this deal?

Conventional finding with 25% down payment.

How did you add value to the deal?

I have made partial floor updates & painted the unit.

What was the outcome?

The unit has been rented since the day I closed on it. It is in an area of town that is being redeveloped and high demand for rentals there.

Lessons learned? Challenges?

This one has been a breeze.

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

Andrew Narsi did the financing on this deal and I highly recommend him.

Fairly well, my Scottsdale portfolio on avg is at above 80% occupancy, and booked out until end of April for most of the properties. I used to be closer to 90-93% occupancy across the board this season, but still happy to stay booked and cash flow well.

Investment Info:

Single-family residence buy & hold investment in Scottsdale.

Purchase price: $171,000
Cash invested: 70,000
Sale price: $435,000

Value add 2 bed/1 bath townhouse where we added an additional half bathroom downstairs. The unit has just been totally remodeled with over $35k spent on features including all new furnishings, paint, new stainless steel appliances, roof, new kitchen, cabinets, new electrical lighting throughout, new light up vanity mirrors in bathrooms, new washer & dryer, and new flooring throughout.

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

The upside potential

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

It came on MLS, and I negotiated the deal directly as the buyers agent for myself.

How did you finance this deal?

Conventional financing with 20% down

How did you add value to the deal?

Complete remodel and brand new furnishing.

What was the outcome?

It was a successful STR property for over 3 years. I was able to sell the property for 435k and was very happy with the outcome.

Lessons learned? Challenges?

I learned to get multiple bids from contractors and that not every project is going to be completed on time.

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

Yes- I was the buyers agent, and my lender Andrew Narsi came through with the financing.

I like the Flagstaff/ Mund's Park play. My 3/2 single family home in Flagstaff is on track to gross just under 100k my first full year of operating it. 

Hi Michael, did you ever find out any more information on these? I am just curious if anybody has any  rental history on it. I would like to purchase a studio or possibly even the larger 1bed/1.5 model if I can just get a chance to see what owners are grossing off self managing or using the rental pool.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $650,000
Cash invested: $165,000

I purchased a 4 bedroom/ 2 bath single family home that needed just some minor TLC to get it ready to become a successful STR property, and put 20% down and pumped another 35k into the furnishing and minor updates. The property is now averaging around 7k-8k a month in gross rental income since going live.

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

I have had several successful STR properties in the past, and saw an opportunity that I had a strong feeling would be successful based on the area.

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

It came up on MLS, I was able to negotiate 10k off the list price and then another 5k in seller concessions towards closing costs.

How did you finance this deal?

Conventional financing with 20% down. Locked a 3.625% interest rate.

How did you add value to the deal?

Removed carpet from the bedrooms and added laminate floors, added can lights throughout the house, added bedroom ceiling fans in every room & bonus room, new landscaping, new pool heater & pool light.

What was the outcome?

The outcome was income. The house has already appreciated about 65k since making the improvements in October 2021, and it has been a very lucrative STR property.

Lessons learned? Challenges?

Staying on the timeline for the updates and furnishing was a bit challenging with inventory being on back order.

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

I represented myself on the transaction as the buyers agent, and I used Andrew Narsi with Envoy Mortgage for the financing who I highly recommend.