Phoenix Arizona newbie

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Phoenix Arizona newbie

Brian Stark
Surprise, AZ · Member since 2016 · 11 posts · 1 vote

Hello,

New to this whole notion of real estate here and trying to learn. Lurked around this site for a few days and absorbed a ton of information (only time will tell if any of it really stuck) but I liked what I saw and created an account. A little about me. My name is Brian and I'm still trying to figure out what kind of real estate I'm really interested in. Right now I'm liking the idea of buy-and-hold rentals, maybe some small multi-family duplex or 4 plex housing. I currently work a full time 9-5 and I hope to supplement some income on the side and maybe use this as a future retirement option. And from the little I know and have been able to read so far buy and hold rentals look like the best way to go about that. But I really know very very little about flipping and other real estate strategies maybe they would be better for me. Thoughts? Advise? Rentals vs flipping for more passive supplemental income? Something else I hadn't really considered?

I have already started to read the Beginners guide from this site and I'm liking the information so far. I know I have a lot more the read and learn but I'm ready to learn.

I've looked into the local meetups but right now I can't find any that I can attend with my current schedule. I'm still looking and hoping that one will pan out and I can make it. But I've only been looking for about 2 days for a meetup on a date and time I'm not already set with a prior engagement. I'm sure I'll find one soon enough to attend.

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Michael Hacker
Investor · Phoenix, AZ · Member since 2013 · 167 posts · 127 votes
10y

I believe that rentals are great long term strategy to build wealth and passive income.  This might be a matter of opinion, but flipping and wholesaling are more of a business.  Many people have had great success with both, but it's not really passive.  If you are looking for local meetups, make sure to check azreia.org.  Good luck!

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  • Michael Hacker
    Investor · Phoenix, AZ · Member since 2013 · 167 posts · 127 votes
    10y

    I believe that rentals are great long term strategy to build wealth and passive income.  This might be a matter of opinion, but flipping and wholesaling are more of a business.  Many people have had great success with both, but it's not really passive.  If you are looking for local meetups, make sure to check azreia.org.  Good luck!

    3Reply
  • Ciro Affronti
    Investor · Scottsdale, AZ · Member since 2014 · 52 posts · 23 votes
    10y

    Good luck with your new found real estate interest Brian! If you're working a 9 to 5 and just looking to gain some passive income on the side rentals are a solid way to go. I personally like to go for small multi family (1-4 units). I find in AZ we get a higher ROI vs single family residential, and are able to utilize economies of scale to get more income out of our properties. It's a bit more work than just purchasing a turnkey SFR however, so if you want to be really hands off I know a few colleagues who bought rentals from turnkey property companies and seemed to do well on them. Good luck!

    0Reply
  • Drew Cameron
    Lender · Peabody, MA · Member since 2015 · 82 posts · 49 votes
    10y
    It kinda depends on what you want. There are many different niches to choose from to make money in real estate. But and hold is a great strategy for long term wealth, but is kinda slow developing. For example, after your down payment you may only cash flow 1-200 a month off your initial investment. Part of this every month should be put aside for repairs as they come up. Wholesaling is really difficult and takes some money up front to buy lists, put up bandit signs, and send direct mail, but can offer big fast pay days of 5-20,000 per deal. Flipping is the riskiest strategy, but offers the biggest potential reward. To start with I would pick one niche and get really good at it then branch out if you like. I just did my first direct mail campaign because the quick pay day that wholesaling potentially offers attracted me. My goal is to do a few wholesale deals and eventually get into buy and holds once I have accumulated some cash of my own. There is plenty of good information on the blogs and podcasts here, and the BP community is happy to answer questions with whatever strategy you choose. Welcome to BP and good luck investing.
    2Reply
  • Charles McClure
    Investor · Raleigh, NC · Member since 2016 · 37 posts · 7 votes
    10y

    @Ciro Affronti, what kind of cash-on-cash returns are you seeing on your multi-units in AZ?

    0Reply
  • Chuck Crouthamel
    Contractor · Phoenix, AZ · Member since 2014 · 13 posts · 5 votes
    10y
    I would suggest joining some local meet-ups. I think azreia is good but the meet ups are smaller groups and easier in my opinion to ask and learn.
    1Reply
  • Account Closed
    Phoenix, AZ · Member since 2015 · 43 posts · 11 votes
    10y

    Welcome to BP! You are definitely in the right place to learn about all aspects of real estate investing. The podcasts and webinars are a great source of information along with the forums. 

    Good luck and happy investing!

    0Reply
  • Alex Franks
    Rock Hill, SC · Member since 2015 · 1k+ posts · 597 votes
    10y
    Originally posted by @Michael Hacker:

    I believe that rentals are great long term strategy to build wealth and passive income.  This might be a matter of opinion, but flipping and wholesaling are more of a business.  Many people have had great success with both, but it's not really passive.  If you are looking for local meetups, make sure to check azreia.org.  Good luck!

    Michael you said it best

    Rentals = Long term wealth , personal I like to pay them off as fast as possible. 

    Flipping, wholesaling is a  business. At the same time when you have goals. Much easier to set a plan of attack. Some thing like flipping 4 properties  a year. Then using the funds as down payments on two future rentals.  

    just my two cents....

    0Reply
  • Brian Stark
    OP
    Surprise, AZ · Member since 2016 · 11 posts · 1 vote
    10y

    Thanks for the welcomes and opinions.  Defiantly feel better looking at rentals over flips and wholesales.

    0Reply
  • Ciro Affronti
    Investor · Scottsdale, AZ · Member since 2014 · 52 posts · 23 votes
    10y
    Originally posted by @Charles McClure:

    @Ciro Affronti, what kind of cash-on-cash returns are you seeing on your multi-units in AZ?

    On the two multi family properties we purchased in 2015, (a 6 and a 3 unit), our CAP rate is about 10% and 11.8% respectively. We paid cash though so not sure what our cash on cash return would have been had we financed. We target value add properties in Phoenix, and look for properties we can either add additional units onto or do a total rehab. A lot of the properties we look at or our investor colleagues buy however typically come with between a 7-9 CAP rate, this is just my experience however.

    0Reply
  • Charles McClure
    Investor · Raleigh, NC · Member since 2016 · 37 posts · 7 votes
    10y

    Thanks for sharing, @Ciro Affronti!

    0Reply
  • Ryan Moore
    Rental Property Investor · Phoenix, AZ · Member since 2015 · 224 posts · 50 votes
    10y

    @Brian Stark

    I also have a 9-5 job that does not allow me to accomplish anything else during the day.  I'm closing on my first multifamily 4-plex here in Phoenix and highly recommend that route as a path when you don't have the ability to devote much time due to a job.

    0Reply
  • Account Closed
    Oxnard, CA · Member since 2016 · 44 posts · 12 votes
    10y

    @Ryan Moore.  Did you go to pharmacy school in AZ?  

    0Reply
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