Convenient Mesa location close to the Light Rail, shopping and plenty of restaurants. This spacious 2 story home with soaring vaulted ceilings and dramatic entry offers an oversized corner lot with RV gate and RV parking, recently updated flooring, paint, kitchen and baths. One bedroom is located on the first floor with double door entry and bathroom with stand up shower. Master Bedroom with walk-in closet and full bath with double sinks is located on the second floor along with another bedroom and full bath. Plenty of storage with HUGE under-the-stairs closet, linen closets and cabinets in laundry area. There’s even an exhaust fan in the attic. Storage shed conveys!
Adorable end unit in Casa La Mesa! The A/C unit is only a few days old and the farmhouse style interior with apron sink, laminate wood flooring and popular, custom ”griege” paint with tall baseboards and raised panel doors is 100% move-in ready. Gorgeous, bright white kitchen with plenty of cabinets, stainless appliances and subway tile backsplash offers a view of the garden area adorned with pavers. This unit has a separate storage shed, yard and 2 parking spaces. There is also a community pool! Close to Historic Downtown Mesa, the Light Rail, Pioneer Park, The Mesa Arts Center and many award winning restaurants.
All of the ingredients needed for making a sound, long-term, and lucrative real estate investment are in the bowl. If you are at a point in your life where there is more disposable income and words like retirement, 401k, defined benefits and IRA’s are becoming more common, then adding real estate to your portfolio should be strongly considered.
Many Millennials claim that they prefer renting to keep things fluid and flexible. This could also be partially PFSD. Post Financial Stress Disorder. Most of our generation was fresh out of college or just starting true adult life when the crash happened. If the crash did not affect your personal finances there is a good chance it did affect your parents, siblings or extended family. If this is the case, I encourage you to think again and address these fears with logic that can be found in data.
The crash was fueled by over-leveraging properties, non-existent underwriting, weak rental markets, higher interest rates, less focus on cash flow vs speculative appreciation and many other other things. The fact is the market ingredients needed to make a sound investment are here now. Couple that with your growing financial responsibility and it’s time to become a landlord.
Have no fear, it sounds daunting and like a big pain in the a**… But, trust me, once you get rolling you realize it is easy and an amazing way to make your money work for you in a passive way. Like the great Gary V says… passive income only exists in real estate. Anywhere else it is a fairy tale.
The fact is, a few extra hours of work a year will change your life and financial future forever.
The key factor is smart leverage. There are many different ways to approach this depending on your financial position. I am going to approach this from two different scenarios, first being a couple who owns a home and wants to buy a larger home. Second, being a single person who is deciding between owning and renting. To make this less complex, I am going to leave out any sales fees, taxes or penalties due upon liquidation of the investments. There are many different ways you could approach this from a tax standpoint, which is a conversation with a seasoned tax advisor.
First Scenario: Deciding Between Selling & Renting/Holding Existing Home:
Tim and Tina bought a home three years ago. They originally put down 10% ($20,000) on a $200,000 property.
Since then the property has appreciated enough to remove their PMI “Private mortgage insurance”. PMI is applied to mortgages with more than 80% loan-to-value at the close of escrow. Tim and Tina locked in a good rate of 4.2% and currently have a monthly mortgage payment of $938.91 + $66.67 for homeowners insurance + $125.00 for property taxes. The grand total monthly payment is $1,130.58, a principal balance of $173,000 and a value of $240,000.
Tim and Tina have decided they need a larger home and want to move. They have been saving money and are in a financial position to put up to $50,000 down. They could sell and pay taxes on gains and put money into other investments or keep the house and rent it out. Let’s take a look at the numbers.
Selling Home & Investing Money In Market.
Tim and Tina decide to sell their home and buy a new one.
They list their home with EVOAZ.COM for 5% and get it under contract for $240,000.
$240,000 x 5% = $12,000
Title Fees $2,000
Inspection repairs $1,000
Total fees $15,000
They Net $225,000
Total Proceeds $52,000
IF Tim and Tina Invested the entire $52k and they get 7% annually, it’s aggressive, but let’s roll with it for the sake of the example.
Beautiful, European charm home located on a 0.27 acre cul-de-sac lot in highly desirable Dobson Ranch neighborhood. Stunning solid hard wood floors and windows throughout bring character and a luxury touch. Vaulted ceilings in dining and living room accentuate the brightness and spaciousness of the home. The stairway continues the open feel to the upstairs, where french doors lead to a sun lit master bedroom and to a master bath with a walk-in closet. Two additional bedrooms and one more bathroom on second floor offer much separation from main living space. Bedrooms four and five and a family room with a fireplace all have doors to a gorgeous, green garden that for years was the pride of the homeowners.
The kitchen and windows all around the kitchen nook also overlook the wondrous outdoor space. The backyard features a large swimming pool (diving depth), which is surrounded by mature trees that make the garden your own oasis. A must see. Will go fast!
The striking uniqueness of the home still offers much opportunity to make it yours.
Other highlights: new roof (2020), jacuzzi bathtub ($20K value), gated area with outdoor storage shed, fence separation of garden space, boat / RV storage with dedicated gate entrance, 5th bedroom removed from the main house with separate entry and garden.
We still haven’t seen any affect to the real estate market from COVID and even the riots that are happening across the country do not faze it a bit. We are up a little in inventory since last month but, if you haven’t been living under a rock, you know that our market is moving swiftly and homes are selling within days of listing as long as the property is positioned correctly. We are still seeing For Sale By Owners, outlandishly priced properties and properties listed by discount Brokers sitting, however.
Here are the stats that the National Association of Realtors just released.