All Forum Posts by: George Mevawala

@JP K. I currently own/ self manage a handful of very lucrative vacation rentals in the Scottsdale market and must say 2017 continues to blow me away as I am now booked all the way until the end of May- July with all my units. 

If you follow the strategy correctly, you can make an extremely good “cash on cash” return (27-42% depending on debt services). Which in return can bring strong annual returns. I have represented several buyers and helped them in acquiring, furnishing, getting their platform started, and creating their very own rockstar vacation rental. It brings me lots of happiness, as I am a “pride of ownership “ kind of guy, and like to see everybody be happy with their investments. I am currently a super host with over 90 (4.9 star reviews on AIRBNB), and this all started with just an idea to try and make some seasonal income.

My two most recent has maintained 91% occupancy since going live in November 2017 and brought in over 20k each gross in just under 6 months. Not too shabby for under 200k investments. 

Not to mention seen over 11% appreciation each with no rehab costs. If you have any interest in taking a look at the Phoenix market, any questions about how to successfully run/ manage a short term rental ( in any city), or just want to pick my brain, feel free to reach out. I love hearing other investor perspectives. Hence why bigger pockets has been such a value add to my life! I have multiple properties that meet my criteria currently on the market, breakdown of expenses ( cleaning fees, furnishings, operating expenses, etc.) I’m more than happy to chat! Thank you, George

Check-in 3:00pm/ Check-out 11AM . I self manage a handful so it gives my maids enough time to clean the entire premises during the same day check-in bookings ( however do not be surprised if you get multiple requests from your next guest to check in earlier).

I like to make it as easy and painless as possible for my guests, so my only instructions are to lock up on the way out,  PLEASE do not forget the pool key, and have a safe flight/ travels back home. 

All my units have keypad door entrance, so it makes it very easy for them to get in and out at their own convenience.  I do not like the idea of giving checkout instructions (such as removing sheets, stocking washer/dryer,etc). Guests are already paying a rate that includes the cleaning fee, and should be treated with 5 star service the entire stay. 

I treat each and every one of my units as its own mini resort. The idea is to get the best possible review, as every review brings several more bookings ( I use multiple platforms, but have had great success on VRBO as well).

Then my maids have a system down, they change the sheets ( always keep several spare sets at the unit). Start the dishwasher, restock the unit, mop the floors, clean all countertops, bathrooms,  throw away leftover condiments in fridge, vacuum, leave my customized thank you package for the next guest and leave). Usually can be out within 2 hours.

I hope this helps!

Thanks

@Bob E. I would be honored!

And for strictly investors investing in an investment property, everybody has a number in mind before they acquire the property and sometimes have unrealistic expectations. I would say the biggest issue is making sure they can be flow positive. I have been continuously growing/ working on a STR platform that yields 14-16% annual returns. However, I am also a "hands on" owner/operator.

Lots of investors are looking for a particular return, and sometimes need to be realistic based on where the market is currently at ( everybody wants 2012 pricing with 2018 rents). That just is not a realistic goal unless you are strictly cash buyer and manage to hit a home run every time you go to auction.

Investors also sometimes are scared of value add opportunities as they tend to think the rehab budget may go over the price they had in mind ( I have always been over rather than under when it comes to remodeling properties). However, I believe that the quality of the property is very important, and no short cuts can be taken.

Tenant turnover and property management are both two very prevalent fears as well. If somebody is debating in investing in a in state/ or out of state property the first thoughts that come to mind are "what if we run into a bad tenant" and can we find a trustworthy manager to oversee the asset ( especially with buying multiple properties and having limited experience).

These are a few more thoughts that come to mind.

Thanks,
George

Hey Mike,

I think that is a GREAT question! I can tell you with most of my first time home buyers I work with it seems to be the "fear" and "uncertainty" that comes with investing in a property. Also, the feeling of "being stuck" or being locked into an investment that may sink rather than swim within the first 24-48 months of owning.

I invested in my first property when I was 23 years old ( right when the market had bottomed out in my Phoenix market). You could have bought just about anything and be up over 50% YTD based on how the market has stabilized. 9 years later I now have successfully invested in multiple properties and have followed a simple code on "How can I add value to this situation" and acquiring properties near popular attractions ( a university, stadium, entertainment district, etc..).  However, lots of prospective buyers on the fence are afraid that the market is "overheated" or just "bound to crash". When in fact, it is the complete opposite. 

As interest rates are rising, I still believe that it is a great time to buy, and most people unfortunately turn a blind eye to all the long term benefits to owning real estate ( tax deductions, equity build up, cheaper to own versus rent and appreciation).   Not to mention the DPA (down payment assist) programs available out there for first time buyers.

Education is KEY to getting more people on board to buying, and it is just a prevalent issue that some people just put it in their head that they "could never own real estate" or it is not a "stable investment", when they are shutting the door to something that could potentially change their life. 

I am not a beginner investor, but wanted to chime in based on feedback I have received with working with several first time home buyers ( within last 120 days). I would say uncertainty is definitely a key component!

Hope this helps a bit!

Thanks,

George

@Account Closed well said sir! well said!

Hi All, I was just spending my Sunday evening doing what I normally do ( searching high and low on MLS for any new investment opportunities that get me excited ). I thought I would start a post to talk about the success that my newest venture has been experiencing in the Phoenix/ Scottsdale market. I currently own/ self manage a handful of very lucrative vacation rentals in the Scottsdale market and must say 2017 continues to blow me away as I am now booked all the way until the end of May- July with all my units. If you follow the strategy correctly, you can make an extremely good “cash on cash” return (27-42% depending on debt services). Which in return can bring strong annual returns. I have represented several buyers and helped them in acquiring, furnishing, getting their platform started, and creating their very own rockstar vacation rental. It brings me lots of happiness, as I am a “pride of ownership “ kind of guy, and like to see everybody be happy with their investments. I am currently a super host with over 90 (4.9 star reviews on AIRBNB), and this all started with just an idea to try and make some seasonal income. My two most recent has maintained 91% occupancy since going live in November 2017 and brought in over 20k each gross in just under 6 months. Not too shabby for under 200k investments. Not to mention seen over 11% appreciation each with no rehab costs. If you have any interest in taking a look at the Phoenix market, any questions about how to successfully run/ manage a short term rental ( in any city), or just want to pick my brain, feel free to reach out. I love hearing other investor perspectives. Hence why bigger pockets has been such a value add to my life! I have multiple properties that meet my criteria currently on the market, breakdown of expenses ( cleaning fees, furnishings, operating expenses, etc.) I’m more than happy to chat! Thank you, George

In Phoenix you cannot go wrong in just about any area ( however doing research is optimal to yielding the best possible return). I currently have a very successful short term platform for rental properties in the Old Town Scottsdale market that yield 14-16% annual ROI. However, with that said, it’s not an “easy return”. I am a hands on owner/ manager. I represent a wide range of out of state/ counter buyers where I have found them successful long term rental investments as well. I LOVE ocotillo lakes area of Chandler (85248). Nestled roughly 1-2 miles away from Intel, I sold a house here for 324k where we had multiple offers to rent it $1,900 plus. This low- mid 300 price point is very attraction considering all you get out of the buy. I also love Tempe (85281,85282,85283 due to proximity to ASU) and no shortage of renters. My favorite gem is Gilbert which is seeing lots of growth, especially with the growth of the entertainment district area. It is a spinning replica of Old Town Scottsdale and will continue to see healthy appreciation. Just wanted to chime in and give my two cents, and any further questions feel free to reach out! I know the market very well. Thanks, George

Phoenix market is a great area to do future projects. We are seeing extremely healthy appreciation and at the price point you cannot go wrong. My favorite areas at this price point would be a small 3/2 in Gilbert (85233 & 85234) some areas of Chandler, and Tempe (85282& 85283). I am very vested in the East Valley. I have several investments in the Scottsdale market, but unfortunately at this price point you will not be able to find any single family dwelling projects unless you were to get a home at auction (cash needed) or from a wholesaler who would be willing to sell with a small fee on top of what they paid. In south Scottsdale near Tempe. Hope this helps and good luck! Thanks,

@Dee Bowers I wanted to reach out and introduce myself. This is my speciality, as I have a few full time vacation rentals in Old Town Scottsdale that do very well for me, and I would be more than happy to assist you with any questions.

It is extremely exciting to see others want to be apart of the growing niche of investing in vacation rentals, especially in a market like Phoenix where we have no shortage of events ( Spring Training baseball games, Barret Jackson auction, The Phoenix Open, are just a few of the popular events that tourists flood Scottsdale in the Spring time). 

 I gross roughly 30-35k on the year for my units.  During peak season, you can expect to gross between 12-15k (Jan-April(. Not bad considering all expenses are covered, and you would get the perks of using it at your own leisure during the off season. The key is a good manager and making sure to furnish the unit properly and COMMUNICATION with all your guests. 

George