Back in December, I wrote about a investment in Prescott Valley Az, click here to view that post, and told everybody how good it was and that they should pick it up for their investment portfolio. Well, I watched it for a couple of weeks and nobody touched this place. Yes, it was pretty ugly, but nothing a little paint and spackle couldn't fix. It had great bones and a great post modern look, nothing else like it in the area. So I took my own advice and bought the place. It close on February 10th and I started fixing it up immediately. I usually like to do these projects myself, but my real estate sale career was flourishing and I didn't have the time to do the fixes the duplex needed. I hired a friend that had experience managing apartments and knew how to get the work done and keep the costs down. It's finally finished and looks great. It took about $3000 more than I expected due to some electrical and plumbing issue. It has total investment is approx $61K. The rents are $500 each for a total of $1000/month. The gross CAP rate is 16.39%. My expenses are low because I only pay water and trash, no debt servicing because it was bought with cash. Insurance($305) and property taxes($907) are a total of $1212/year. My net CAP rate is 14.18%. Not to bad if I do say so myself. Yes I am here to pat myself on the back, but more importantly to make YOU, the investor, think differently about property. It may not always be the prettiest or newest, but with a little creative thinking and some elbow grease, you can have a great property and generate a fantastic income. I have more properties that are similar to this. If you want to see them, give me a call soon because they are going fast!!
Here are some before and after pictures.
Exterior Before, notice the boarded up holes in the wall!!
After, painted dark olive with black trim. I wasn't really confident about the colors, but I've learned to trust my designer, aka, my wife.
Before - old shag carpet and desperate need of paint
After with new flooring and fresh paint, smells alot better too. Give it another month and those roses outisde will be blooming looking and smelling great.
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