All Forum Posts by: George Mevawala

Investment Info:

Single-family residence buy & hold investment in Mesa.

Purchase price: $290,000
Cash invested: $36,000
Sale price: $440,000

Value add single family home which I just sold.

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

I saw potential in the area, and knew that it was an up and coming area.

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

On the MLS, and I negotiated it directly with the listing agent.

How did you finance this deal?

Conventional financing

How did you add value to the deal?

The house was already mostly remodeled inside, I came in and added exterior upgrades. I took out all the grass and added turf and rocks, a 2nd paver driveway, a custom sports court, pool upgrades, new exterior lighting and interior bedroom floors & chandelier.

What was the outcome?

I just sold the house and turned a very great profit.

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

I represented myself as the buyers agent on this transaction.

Phoenix, AZ

@Vincent Chen I am currently at 82% occupancy on my portfolio in Scottsdale, versus this time last year I was at 91%. I am definitely feeling it as well, but 5 minutes before posting this I just got a last minute 2 week booking at one of my properties, and this just goes to show that you have to be prepared for a little bit of a slow down, but there will always be travelers that are looking to book last minute, especially this time of year and factoring in the coronavirus and other states having stricter lockdowns which contribute to their spontaneous decision to pack up and head for the southwest.

George

@Kaylee Walterbach I wish I would have known just how much things were going to change for the better when I closed escrow and got the keys to that first property (with time obviously) and wish I would have been able to accomplish this several years earlier instead of throwing all that money away on rent! But we live and we learn! My wealth was not obtained over night, as real estate is a long term play. However, that was the best decision I ever made deciding to purchase my first property at the age of 22.

I was able to put my first property I acquired on a 15 year mortgage, and not only pay down the principal faster, but also ride the waive of an average 8% annual appreciation for the next 6 years I owned the property. When I sold that property, I was able to buy 3 more in that next 12 months, and free up capital which helped me strategically target value add opportunities ever since.

I now own over 10 income producing properties in my market, and have started to really see the benefits of long term investing in real estate. I did not have a clue about the cash flow, appreciation or tax benefits to owning real estate, nor did I understand that it would all make sense eventually. Patience is everything in the game of real estate! Also, the importance of never getting big headed, no matter how seasoned of an investor you become. I learn something every day in this business, and appreciate the value that comes from learning from others.

@Thierno Kouyate I try for at least 2-3 a week.

@Paul DeSilva I still am in the Southwest Paul! Phoenix has continued to be one of the fastest growing cities in the nation in 2020, and we are continuing to see approximately 250 people move here a day.

I focus on value add opportunities in which I can make strategic upgrades that not only increase the rents, but also upgrades that help add instant equity into the property. We are low on inventory at the moment, but there are still deals out there!

Nice to meet you @Gevin Glines. I am also local in the Phoenix market and a Realtor/Investor and know what you are going through with the competitive market! It is due to the low inventory and high demand with 250+ people a day moving to Phoenix, and also with our healthy local economy, low property taxes, strong rental market ( for landlords) and growing tourism sector, who wouldn't want to live here?

 I own over a dozen properties in the Valley, and just closed on my most recent rental in early May from just consistently staying up to date on anything and everything that hits the market. You can also check with wholesalers or try to find direct sellers that might be willing to sell to you. I hope this helps, and 22 is a great age to get into real estate, I bought my first property at 23.

Sincerely,

George

@Susanna White I think that is a great idea.The only problem I have with multi-family in the Phoenix area is the scarcity and very slim pickings currently out on the market... However, there is always a deal out there if you put enough time in searching! I would recommend looking for a value add triplex or fourplex in Mesa/ Garfield District / Downtown/ Tempe/ or somewhere in a market that has lots of upside potential... If you are having trouble finding properties on MLS, maybe start reaching out to some local wholesalers, or you could always start calling unrepresented owners and try and get one to sell directly to you.. I have had that type of outcome before from dialing.. Start rehabbing the units one by one ( if you do not have capital upfront for all units), or do them all at once and live in one unit for a year while you rent out the other 3 units... Live for free, start slowly paying down your principal balance, and start saving the NOI towards your next property and repeat the process in 12-18 months.. You will also instantly be sitting on some nice equity once the project is complete which will be a nice cushion for you down the road as well if needed. Hope that helps!

@Robin Morales I started investing in Tempe due to the proximity to Arizona State University ( one of the largest universities in the nation and only continues to grow), then worked my way to Old Town Scottsdale where we have the Entertainment District and lots of local attractions and events. I then ventured my way to Mesa, Chandler and Gilbert. 

I personally think you cannot go wrong with just about any area of Phoenix with the growth we are currently experiencing. With 250+ people moving here a day, rents continue to go up. I have been keeping my eyes open for some West Phoenix deals and upcoming areas near Downtown Phoenix. Hope that helps! Let me know if you have any other questions!

@Deniqua Antoine definitely hard to say as everything thus far has been a learning experience. I bought my first property when I was in my early 20's, and my only regret is taking so long until I was able to acquire the next property (4 years later) and now that I am in my early 30's I have owned over a dozen investment properties and learned from every single experience. I should have been looking for more off & on markets deals earlier in my career, but I now pick up the slack for the years I missed!