Loan Amount: $70,000
Loan term: 6 Months
Property Type: Single Family Residential
Loan Type: Fix and Flip
Our new borrowers from Flagstaff found themselves a great fix and flip in the Kachina Village area. They bought the home at $100,000 and have budgeted nearly $27,000 into their rehab budget to make this little cabin more comparable to the neighboring homes. Items on the budget include new flooring, new kitchen appliances, and a new roof, which will be fantastic for our borrowers when they plan to sell closer to Winter 2017.
Flagstaff’s real estate market isn’t known for being the most affordable when searching in the city, but just outside of the city there are a number of properties that are at more affordable prices waiting for both new homeowners and real estate investors to come and bring more value to the property. Some Northern Arizona real estate investors have even opted for a fix and hold position where they will buy the property while it is inexpensive, fix it up, and then make it into an income producing property.
The surrounding area of Flagstaff has become a popular alternative for home buyer’s looking to find their new home, but without prices as steep as the mountains. Our borrower followed the same mindset of those buyers, and saw the opportunity for improvement in the home to make it a turnkey property.
Flagstaff is seeing some more activity as they work towards creating enough residential properties to keep up with its growing population. As student population continues growing year after year the market is squeezed from both sides of students looking for affordable rentals as well as working families searching for the same thing. This puts a strain on both ends, as well as people stuck in the middle who are unable to move due to short supply on the market.