Brrrbnb - near Phoenix AZ - advice on financing

Brrrbnb - near Phoenix AZ - advice on financing

Realtor · Long Beach, CA · Member since 2020 · 17 posts · 2 votes

I am a new investor looking in the following areas: Tempe, Scottsdale, Mesa, chandler AZ

My goal is to purchase a second property, Airbnb the property and Using BRRR.

Budget is 150k : condo or SFH (my budget doesn't give me many options)

Questions:

How can I increase my budget without as much cash? What types of loans can I use to my advantage?

I have 26k cash to bring to the table for DP & closing (this number is growing as I save), but I was trying to get a large enough loan to finance the rehab (ideally cosmetic only)

Thanks in advance!

Also I live in Long Beach California, I have a team in AZ assisting me, but looking for more advice and experience.

If anyone needs any help in the so cal area I am here for you.

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Real Estate Agent · Tempe, AZ · Member since 2011 · 1k+ posts · 543 votes
5y

@Antoinette De la Espriella Your $150k budget will get you a 1bd/1ba condo in Tempe/Mesa or a property in need of serious rehab. 

For financing, you're looking at conventional loans min 10% down but for condos, down payment could be 20%-25%. 

There are currently on 3 properties listing in MLS that meet your criteria.

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  • Real Estate Agent · Tempe, AZ · Member since 2011 · 1k+ posts · 543 votes
    5y

    @Antoinette De la Espriella Your $150k budget will get you a 1bd/1ba condo in Tempe/Mesa or a property in need of serious rehab. 

    For financing, you're looking at conventional loans min 10% down but for condos, down payment could be 20%-25%. 

    There are currently on 3 properties listing in MLS that meet your criteria.

  • Real Estate Agent/Investor · Peoria, AZ · Member since 2016 · 2k+ posts · 2k+ votes
    5y

    @Antoinette De la Espriella

    Unfortunately, a budget of 150k won't get you much these days. A year or two ago and you would be in business. But with the market being bananas right now, you'd need to up your budget tens of thousands of dollars to find more properties that are in good areas and/or aren't in terrible shape.

  • Realtor · Long Beach, CA · Member since 2020 · 17 posts · 2 votes
    5y

    @Paul Welden

    Thanks for the info Paul! I am starting to search in the 200k and below range now, I was able to acquire a private loan.

  • Realtor · Long Beach, CA · Member since 2020 · 17 posts · 2 votes
    5y

    @Bob Okenwa

    Thanks Bob, where are you investing in AZ?

    Also, what areas do you recommend in a lower price range? That I can at least get my foot in the door?

  • Real Estate Agent · Tempe, AZ · Member since 2011 · 1k+ posts · 543 votes
    5y
    Originally posted by @Antoinette De la Espriella:

    @Paul Welden

    Thanks for the info Paul! I am starting to search in the 200k and below range now, I was able to acquire a private loan.

    Cool! Now there are 24 properties in the MLS to select from. There are a few off market properties that may work for you too.

  • Real Estate Agent/Investor · Peoria, AZ · Member since 2016 · 2k+ posts · 2k+ votes
    5y

    @Antoinette De la Espriella

    I currently have a flip on the market in Phoenix but keep my eyes open for anything that makes sense in just about any area in Metro Phoenix.

    200k gives you some more options. I'd look in Tempe, South Scottsdale, Central Phoenix near downtown. You can find a couple of 1 or 2 bedroom condos in those areas right around 200k.

  • Real Estate Agent · Phoenix, AZ · Member since 2012 · 640 posts · 457 votes
    5y

    Don't risk all your money on a condo to Airbnb if the CCRs prohibit short term rentals. General rule of thumb is that 90% of associations prohibit them, while maybe 10% explicitly allow them. If your whole model depends on the doing Airbnb, then it's always safer to buy a SFH without an HOA.

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