All Forum Posts by: Zachary Yelder

Welcome Paul to BP. What investments are you working on in the Phoenix valley?

Thomas, just looking at the deal you have. So, is the purchase price $2.25M with a $5,900 PITI? I feel like there's a few numbers missing to truly estimate the buy & hold strategy here over the flip exit. Feel free to message or call me to discuss details.

Brandon. Would love to connect with you as well. I'm also active in the Phoenix metro area with new builds and rehabs. We can meet at any of my sites or yours. I have a new one coming in Troon and South Mountain I'd like to discuss. 

 Thanks John for your response. Yes, I learned the market doesn't do 30 days or under. I prefer more midterms if I furnish. The appraisal I had back in November last year came in at $1.97M and it's currently active for $1.7M at 40 days. If you see the front it's not done and the driveway I haven't completed and to why I listed it below. I'm afraid I'll have to finish the curb appeal and driveway but figured someone at this price point and area had $45k to do it. I assumed incorrectly as it's been made clear buyers here want a fully finished product to just move into. 

@Arn Cenedella Thanks for responding. So I actually lived out there starting end of 2020 and worked on this house starting in 2022. While I was out there the business in Phoenix continued so I was able to manage AZ while being in SC and learning your market. I've reached out to those companies and some businesses who work with them so, we'll see. 

I have a 5 bed, 4.5 bath, 4,445 sq ft home on the famous August Rd & Faris in the 05 of Greenville. I'm not having any luck selling it so I'm thinking of pivoting to a midterm and short term rental as a buddy of mine has had some success with his house in Paris Mountain and the 09 zip code in Greenville. I've looked at the AirDNA data and Rentometer but there isn't much data in my area for that size of a home, new construction that people are renting in the luxury space as it's nearly a $2M spec. If there is anyone with luxury rental experience in Greenville that can lend some advice or experience, I'm all ears. 

Miciah,

Phoenix market has changed drastically since 2020 and has made the cash flow market very tight if you're not walking around heavy in liquid. Your average cap rate in Maricopa county is 5%, which for the starting investor isn't anything worth doing as most people buying the rentals are doing it for write off purposes more-so than cash flow. My first step would be to grow your capital by investing in rehabs, partnering before purchasing your first buy & hold. Our purchase market is very strong so you'll be able to grow capital relatively quickly partnering with someone who's actively developing and rehabbing sites. Every partner I've had over the years starts there and when they're comfortable with the capital they have then they can branch and purchase some long term assetts. You're welcome to message or call me for more discussion but I hope that helps.  

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $425,000
Cash invested: $23,000
Sale price: $510,000

My first lipstick flip that just needed updating from my REO lender.

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

An REO lender I've known over the years calls me on deals he knows I can purchase quickly. At that time it was an area with homes that move relatively quickly and a low enough price point with the rates to make it appealing to buyers. As long as it was clean and in good shape it was going to move.

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

My REO lender. The foreclosure price is set.

How did you finance this deal?

Boomerang Capital

How did you add value to the deal?

Painted the entire home. Replaced doors, updated some of the light fixtures, refurbished the kitchen cabinets and countertops. The landscape wasn't in good shape so had that redone. The foundational items, roofing, HVAC, plumbing and electrical were newer and needed very minimal replacing and updating.

What was the outcome?

Sold it quickly within a week with multiple offers over ask.

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

Boomerang Capital is my favorite lender in the valley and Jennifer Bayless at Magnum Title is the best escrow officer

Investment Info:

Condo fix & flip investment.

Purchase price: $570,000
Cash invested: $175,000

Purchased this rehab property in April for a building that is widely overlooked if you don't know the area. Full on high end rehab with custom finishes top to bottom. ARV is over $1M when done.

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

I live in downtown and sold in the area for years so anything Central for me in the valley is ideal. I've also known about this building as I've sold in it before and know how rare it is to catch a unit at the price I purchased.

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

An agent I know.

How did you finance this deal?

Finance of America. Not a lender I recommend but it was to help a broker close a deal so we did it.

How did you add value to the deal?

Full gut and remodel with high end fixtures and finishes.

What was the outcome?

Still working on it but a couple of weeks out from finishing.