how are you finding semi move in ready single family homes at prices to profit

Question

Im currently looking at single family homes in Phoenix,az , im a first time homebuyer and looking to live in the house some time, then rent it out, buy another house rinse wash repeat, having no experience at all in REA im looking at single family houses in average areas of Phx and vicinity, 3bdr, 1br +, 1000sft min, max $300k, i am working with a realtor and loan lender (broker and bank), already put offers in the range of $275 and got accepted but sadly at the moment i had issues with my loan docs and deal fell through, but that is fixed now, I just use zillow and redfin to search for homes within my range and recently asked my realtor to search homes with my criteria, but they are really and needle in a hay stack.

Aiden Avtgis · Answer

One thing I'd keep in mind is that what we look for in a house for ourselves isn't always what we should look for in a rental.

Since your plan is to live there for a while and then rent it out, I'd try to look at every house from the beginning as a rental. Will it cash flow at the price you're paying?

It can be easy to find a house you really like personally, but if the rental numbers don't work when you buy it, you could end up in a bind when you go to rent it out.

I'd run the numbers on every house you're seriously considering — rent, taxes, insurance, repairs, vacancy, and your mortgage — even though you're going to live there first.

That might help narrow down the "needle in a haystack" a little. Try looking at it first from the perspective of looking for a house that works as a rental when you're ready to move on that you are satisfied to live in now.

Good luck!

Jules Aton · Answer

If it makes you feel any better even decades ago when comparing price to earnings finding a starter home that was "move in ready" was difficult for the average person who wasn't loaded. Then again our idea of a starter home was far more modest back then. It has also generally not been easy to find a property that will be quickly profitable for someone who doesn't have good contacts. Sacrifice will likely be the name of the game that can pay off handsomely.