Today we’re going to walk another property that I just contracted. The reason why I’m doing this YouTube is I want to talk to yoiu about how to determine which exit strategy to use… l
𝐉𝐨𝐢𝐧 𝐎𝐮𝐫 𝐏𝐫𝐢𝐯𝐚𝐭𝐞 𝐅𝐚𝐜𝐞𝐛𝐨𝐨𝐤 𝐆𝐫𝐨𝐮𝐩
Today we’re going to walk another property that I just contracted. The reason why I’m doing this YouTube is I actually might need some of your help. It’s a great condo here in Mesa, Arizona, and I’m trying to figure out what kind of exit strategy do I want to use for it, you guys have watched enough of my YouTube videos to know, the expert investors always have options, right, you have the option to wholesale it, you have the option to rehab with it, you have the option to wholesale it for the properties that are super clean, don’t need a lot of work. And then you have the option to keep it in your portfolio. And so this property why I’m so excited about this property and so excited to do this video with you guys is because I have all four options on this property. I’m really kind of uncertain what to do and what exit strategy I should use on this property. So I wanted to record this video, I want you guys to walk through the property with me. And I want some feedback. In all honesty, I want you guys to write in the comments about what you think is going to be the best Avenue. I’ll give you some rough numbers here on this video. And then we’ll do kind of a part two to this video in the future as I start to make my decision but recently contracted this incredible condo here in Mesa, Arizona. So let’s go check it out. Alright guys, so welcome to this great condo. As you can see, I started this video by saying that you can have multiple exit strategies, one of them is wholesale. And this would fit a perfect hotel. The reason why this fits perfect hotel is because it’s totally clean. I don’t actually have to do anything in here. Now, if you look at the tile, and if you look, the fact that there’s mismatch tile in between the living room and the kitchen, and it’s a mismatch look, and then you look at the the cabinets and the countertops. Yeah, could you make the argument that is completely dated and not totally up to date? And what I would want to live in a property or maybe you know what you would want 100%? Right? Would I maybe change the paint? Would I take the popcorn ceiling? down? Would I do all of that in a rehab 100%. But this is why when you’re at the level as an expert or myself, you can actually wholesale this, you can list this immediately. And wholesale it you can rehab it. And then the next question is, do I want to keep this as a rental. And the numbers actually makes sense that the number we’re buying you that and where it rents at. And so we are right on the verge of that being a 1% return. And so when you think about a rental, you really want to get 1% back, so all your cash in a property. Essentially, the rent every single month should be about 1% of your all in cost of the home. So let’s just use the example if I’m all in on this for 150 grand as this condo, I want my rent to be roughly 15 $100 we’re very close to that on this property. We’re not exactly there. But we’re very close. So it gives me another thought of what should I be doing with this property. Now, I do like my cash. But I also like building wealth. And this is an incredible property right here in Mesa, Arizona. And so let’s take a further look at the property to see if anything sways me one way or another on what decision we’re going to make. So as we just said, here’s the kitchen, completely traditional normal kitchen. Nothing of massive value. My assumption is this is just a water heater in a pantry, which is absolutely correct. Nothing special here. And then as we take a look. So as we look, here’s just kind of a great room obviously has a great balcony that has a nice little beltway, I guess if you will, we’re actually on a golf course and here’s some whole couldn’t tell you what hold that is. But it’s a beautiful property this. This is starting to make me think this could be a great rental. So this is a great property so far. Great little community. You see here you have a little 48 some sort of hot tub action going on here. I really like that great neighborhood really quiet. So I’m leaning towards this. This is very unique. I think this is a door to the master bedroom.
So that way, you know you don’t have to go Through the house in case you have guests, you actually can come out to the master I really like that here is well. So here’s where it all goes down to the master bedroom, they did a great purple. If you guys can see this, this is just unbelievable. But very classic in the sense that people want to do something. So they throw some color up. This one was purple, the bathroom is completely original. Again, you know, could I remodel this and make this a beautiful bathroom? Absolutely. But as you see, this is just an original bathroom very, very clean. And then you have a walk in a walk in closet, quite literally can walk right through it, too, that’s definitely different. So you have a walking closet, which leads right into your laundry room. And then leads so you have like a jack and jill slash like it’s just a hallway, essentially, now you have another closet for the guest bedroom. So it’s a two bedroom, and you have the guest bedroom here little darker. And then the guest bedroom also has its own bathroom, which again, totally original.
Alright, so I’m sitting here now I’m actually at the table here in this condo. And I’m starting to do a little bit of math right because the property is not very big, but it does have two master suites, meaning both bedrooms is a two to both bedrooms actually has its own full bathroom. And so that provides a lot of value, especially in the rental market. So I’m leaning towards keeping this as a rental. But when I look at the remodel cost of something like this and the cost of remodeling a property these days versus what it was even just a year ago the cost of materials knowing the size of this home is just over 1000 square feet. I know I’m gonna have to put more money than I probably want to give in the price point I bought this at I bought this probably a little high for doing a full full blown remodel with intentions to sell. Now if I remodel this and make this like up to date and super modern and cool and whites and grays and white cabinets and new tile and then kept it the math for that rental doesn’t perform as good as it does if I just actually keep this the way it is right now with all the current materials. I don’t believe my location right now we’re in Mesa, Arizona. There is some cool things in Mesa, Arizona, but it does it’s not like a hotbed for like Airbnb, per se. So keeping this as an Airbnb, I’d have to do some more research on Is there a viability of this being an Airbnb does Hoa have rules against Airbnb, those are some things you want to think through. And then lastly, I love the idea of a whole tale. Now if you guys don’t know, I truly believe I coined the term wholesale back in 2010. I was buying all of my homes down at the auction courthouse steps. And some of those homes were very similar to this in the sense of like, super clean, didn’t need any work at all. And I could just literally buy it and list it. And so I believe I coined the term hotel, check that out. And I love the concept. I’ve bought it right enough to wholesale it. Now the things that I’m going to think through on whether I want to wholesale this or not is going to be how many days on market? What are the comps look like? And you know, at the end of the day with all the closing costs and holding costs for capital? Does the money still make sense? versus if I was going to turn it like that? I would also be comparing it to wholesaling it right? Can I make a chunk of money wholesaling it and not have to take the time of listing it, putting it on the market waiting for the buyer to get their loan, having an inspect inspection, contingency getting an appraisal, and then funding, which typically is taking anywhere from 30 to 45 days in between those numbers. So then I just do a cost analysis like can I make a big enough chunk wholesaling this property that it makes more sense to just turn that over and wholesale it versus wholesaling it. And the way I would look at that is if I can essentially double my money, right? So let’s just say I can make $20,000 on a wholesale fee, if I can get a $40,000 wholesale profit, I would highly, highly consider that right? Especially at this price point. This condo just over 1000 square feet is not a big capital investment. Right? I’m not talking about a $600,000 home. So the two models I’m looking at the closest right now will be keep it as a rental portfolio long term, not Airbnb, and then keep it in whole tail it and then not do anything again. It looks like I’m not doing any rehab on this at all. So I’m taking rehab out. I’m also taking like a rehab to rent out, so I’m not going to burn it, if you will, right? Buy it, rehab it, rent it, I’m not going to do that I would just buy it and rent it. And so I’m going to keep you posted. This is part one of this video, I’m going to keep you posted on where I go with this property, what my decisions were in making the decision or what were the reasons and making the decisions I made. And hopefully you guys find this value. If you guys have an opinion on this, if you think I should do long term hold at birth, rehab, flip it wholesale it wholesale. If you have an opinion on this, I want you to comment below. I’m interested in your opinion here. In fact, if you want to share this video with some other people that you might think have a good piece of advice. I’m always open, I’m always at yours. So go ahead and share the video. And if this is your first time to my YouTube channel, like this video, hit the subscribe button. I do all things real estate, business and entrepreneurship. Make sure you like this video, make sure you’re subscribed to my YouTube and I will see you guys on the next video. And by the way before you go. 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