So I finally got to the Phoenix area and got settled in a couple weeks back and have been trying to get a grasp on how the small MFR market promotes itself in the greater Phoenix area via the MLS. I was hoping some of the more seasoned local folks who own 4-plexes to duplexes wouldn't mind chipping in to enlighten me on the specifics for the area. I understand each property will be unique but i'd still like to hear based on what you've seen or done with your own properties in the Phoenix area.
The most important, is posted rent the actual rent paid or is that before sales tax, fees, etc? How about on the MLS?
If you tack other fees to the rent, what are typical fees to add on top of rent?
HOA and other fees; If there are any, are these typically included in rent, paid from rents collected, or added to rent?
Why isn't solar power on every MFR? Cost prohibitive? Not enough ROI? Looks?
I haven't priced property management places yet but, for the sake of analyzing a property, what percentage of rents should I be looking at paying towards management? Or is it flat rate regardless of rents taken in?
I know some of y'all are going to suggest AZREI but I have not, and likely will not, be able to make it to their meetings due to work location and schedule. Any groups more local to Peoria, Litchfield Park, or Surprise would be much easier to try to schedule around, if anyone knows any.
Thanks in advance for any help/info you can provide.
The utility companies out here have pushed legislation through that makes solar much less attractive (yay politicians, outstanding job yet again), and in my experience advertised rent is actual amount paid. Property taxes and HOA fees should be incorporated into that amount. Seperate bill-back for water or power isn't rare, nor is it common... though most rentals are set up for separate electrical billing. Water/trash/sewer can go either way, though most buildings I've seen aren't set up for seperate metering. Property management fees vary with the management company, and service quality varies widely even within the same fee range. Shop around... depending on the area, there are probably a few people here on BP with solid local management experience, and even a PM company themselves.
This guy is pretty popular, and I've heard him speak on at least one podcast recently... seems legit:
Good luck.... oh and join AZREIA :P
Welcome to the Valley of the Sun, @Brian Volland ! We work with a lot of investors like yourself. Please let me know if we can be of assistance to you.
@Robert Lorenz I'll see what I can do about adjusting my work schedule to be able to join and attend the AZREIA meetings. I've met two or three folks in PM and REI since I've been here just from chatting folks up around town and they all recommend it. Something tells me it'd be a good idea to go.
In terms of solar power being less attractive due to legislation, can you elaborate? I'm not looking to turn a profit from selling back to APS but I'd love to be able to offer free electric or at least cover common areas.
I spoke with Mr. Rosen and he was helpful but, unfortunately for me, he deals primarily in the East side of Phoenix whereas I'll be looking at West and Central Phoenix.
Thanks again for the help. Looks like I'll just need to pay close attention to the details for each property when it comes to who pays what. Those HOA fees can kill a good deal real quick.
The utility companies are trying to do away with net metering and charge additional fees or different rates to solar-equipped customers.
I am surprised I didn't see anything more about it on this years ballot... perhaps they're pushing it through without voter approval? Yay AZ Corporation Commission....
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