Looking for Advice - Sell, Rent, or Airbnb in Phoenix, AZ

[James Barnes]

Looking

for some advice. I live in a 3bed/2bath in the Biltmore area of

Phoenix, AZ w/pool. Owe 347k on the loan, 30 year, 2.875% fixed rate,

which right now is a decent position. Family and I are needing to move

back to our hometown in the midwest by June, and would like to ride out

living here until May. Due to the looming clouds of the market forecast,

not sure whether or not to sell, rent this place out (would have to pay

a PM as I would be completely hands off and out of town) or possibly

leave our furnishings and Airbnb the place. Any advice greatly

appreciated. Thanks!

[Melanie Johnston]

@James Barnes It's smart of you to consider all your options before deciding what to do. I agree with the gentlemen above that a lot depends on your goals. Do you want to build a real estate portfolio? Does the property cash flow as rental? Would it be a profitable Airbnb? Lots of factors.

But having been in this real estate market for 15 years, I can't see how you are not sitting on a gold mine. You are in one of the most desirable zip codes in Phoenix. You have a single-family, 3/2 with a pool. I just comped both rentals and sales in your zip code. I will put those links in a response below, but they might get nixed by the BP reviewer. If so, I can private message them to you just for reference. Since I don't know your house's features, you'll have to see which of these might be more comparable. There were no 3/2 combos when I searched for active listings, so I pulled the closest I could find.

Airbnbs can be awesome, but they must be closely managed. You can talk with STR management companies to find out their fees, which can be 30% of revenue.

To explore the cost of a long-term PM, reach out to Barbara Habbeshaw of AZ Residential Management. I have connected her to BP members who I've helped by SF homes to rent. They are pleased with the cost and convenience of her services.

We are in a very strong market that is not predicted to slow anytime soon. I was on a 90-minute market update call from one of the most respected AZ RE market analysts and our market will continue to appreciate through 2021. If it hits a headwind, it will still appreciate, just at a slower growth rate.

Here's a chart that Tina Tamboer of The Cromford Report shared with agents today. I hope you find it useful. If the numbers work and you don't need to sell, holding on to your home might be a great wealth-building move.

Melanie