BRRRR vs. Flip: What is the PHX market?
Investor · Denver, CO · Member since 2016 · 14 posts · 7 votes
Looking into investing out of state and looking in the Phoenix area. I don't want to base everything on a "rule" or a test, but finding most deals so far struggle to meet the 1% rule, let alone come close to the 2% rule. I'm far more concerned with long term appreciation, but finding a deal that cash flows $200+ has proven difficult to date as I just dont see rents over $1200-1500 in most B/C+ neighborhoods.
Is this more of a reflection of a market to flip or just not having found the right deals yet? Are other having success rehabbing and renting in the Valley of the Sun?
Looking into investing out of state and looking in the Phoenix area. I don't want to base everything on a "rule" or a test, but finding most deals so far struggle to meet the 1% rule, let alone come close to the 2% rule. I'm far more concerned with long term appreciation, but finding a deal that cash flows $200+ has proven difficult to date as I just dont see rents over $1200-1500 in most B/C+ neighborhoods.
Is this more of a reflection of a market to flip or just not having found the right deals yet? Are other having success rehabbing and renting in the Valley of the Sun?
I'm doing fine in Phoenix. I bought a 4 bed 2 bath flip for $5,000 to the seller and taking over their $164,000 mortgage. I'm putting $60,000 into it and I have an offer in writing for $325,000 for when it's ready to close. I'll have a buyer's agent fee of 3% for a net somewhere in the area of $85,000
I bought a 3 bed 2 bath in Mesa for $31,000 cash to the seller and taking over their $121,000 loan. I have an offer on it for $255,000 "as is". I might let the new buyer do the rehab or I might fix it up and get the rest of the equity. I could end up selling it for a Turnkey for $80,000 and the investor taking over the mortgage and then put a Tenant Buyer in there for the investor who will get $25,000 Option fee from the new buyer along with a rent of $1,650 a month for a cash flow of about $650 a month.
I don't know if that meets the 1% rule but I'm happy with it and my California investors are happy with them.
Looking into investing out of state and looking in the Phoenix area. I don't want to base everything on a "rule" or a test, but finding most deals so far struggle to meet the 1% rule, let alone come close to the 2% rule. I'm far more concerned with long term appreciation, but finding a deal that cash flows $200+ has proven difficult to date as I just dont see rents over $1200-1500 in most B/C+ neighborhoods.
Is this more of a reflection of a market to flip or just not having found the right deals yet? Are other having success rehabbing and renting in the Valley of the Sun?
I'm doing fine in Phoenix. I bought a 4 bed 2 bath flip for $5,000 to the seller and taking over their $164,000 mortgage. I'm putting $60,000 into it and I have an offer in writing for $325,000 for when it's ready to close. I'll have a buyer's agent fee of 3% for a net somewhere in the area of $85,000
I bought a 3 bed 2 bath in Mesa for $31,000 cash to the seller and taking over their $121,000 loan. I have an offer on it for $255,000 "as is". I might let the new buyer do the rehab or I might fix it up and get the rest of the equity. I could end up selling it for a Turnkey for $80,000 and the investor taking over the mortgage and then put a Tenant Buyer in there for the investor who will get $25,000 Option fee from the new buyer along with a rent of $1,650 a month for a cash flow of about $650 a month.
I don't know if that meets the 1% rule but I'm happy with it and my California investors are happy with them.
@Mike M. definitely sounds like you're thriving! Are you utilizing a direct mail or another more aggressive tactic to find deals?
Looking into investing out of state and looking in the Phoenix area. I don't want to base everything on a "rule" or a test, but finding most deals so far struggle to meet the 1% rule, let alone come close to the 2% rule. I'm far more concerned with long term appreciation, but finding a deal that cash flows $200+ has proven difficult to date as I just dont see rents over $1200-1500 in most B/C+ neighborhoods.
Is this more of a reflection of a market to flip or just not having found the right deals yet? Are other having success rehabbing and renting in the Valley of the Sun?
I'm doing fine in Phoenix. I bought a 4 bed 2 bath flip for $5,000 to the seller and taking over their $164,000 mortgage. I'm putting $60,000 into it and I have an offer in writing for $325,000 for when it's ready to close. I'll have a buyer's agent fee of 3% for a net somewhere in the area of $85,000
I bought a 3 bed 2 bath in Mesa for $31,000 cash to the seller and taking over their $121,000 loan. I have an offer on it for $255,000 "as is". I might let the new buyer do the rehab or I might fix it up and get the rest of the equity. I could end up selling it for a Turnkey for $80,000 and the investor taking over the mortgage and then put a Tenant Buyer in there for the investor who will get $25,000 Option fee from the new buyer along with a rent of $1,650 a month for a cash flow of about $650 a month.
I don't know if that meets the 1% rule but I'm happy with it and my California investors are happy with them.
@Mike M. definitely sounds like you're thriving! Are you utilizing a direct mail or another more aggressive tactic to find deals?