All Forum Posts by: Spencer Wagner

Quote from @Allie Pfannenstiel:

Hi @Spencer Wagner

The draw to the Queen Creek market is it's proximity to the Mesa Gateway airport and it's affordability compared to the traditional areas for short term rentals like Scottsdale, Tempe, and Central Phoenix. 

The Mesa Gateway airport draws in many budget travelers primarily through Allegiant airlines. They have direct flights from popular destinations like Vegas, Houston, San Diego, and more. Staying nearby the airport and renting a car on turo.com is a very popular choice to be budget friendly. Many people are willing to drive a little further if it means saving thousands of dollars for their week long vacation in valley of the sun! 

The price to stay in Scottsdale per night can be almost double the price to stay in Queen Creek with the same amenities. Lets face it, majority of the time people just want a nice home with a pool to enjoy our sunshine. 

In conclusion, Queen Creek is a place where people can still have a great holiday in Arizona without the price tag of Phoenix airport & Scottsdale airbnbs.

The difficulty for potential investors is that Queen Creek really started to be developed in the early 2000's when master planned communities were already very popular. Finding a home in Queen Creek that doesn't have an HOA or has an HOA that allows short term rentals is not easy. Majority of them have a 30 day minimum rental requirement.

Please reach out if you'd like to discuss further :)

Thanks for sharing your thoughts here. We are looking at the potential market for travelers like ourselves. Maybe we’re coming to hit up different parts of the city, but mostly we want to visit a new town, be close to our kids, and convenience to shopping and dining. So, we are catering to the budget conscious family that needs more than 2 queen beds (aka two hotel rooms). Traveling teams are also a really nice opportunity that doesn’t seem to be seasonal in the valley. Every time we have stayed at a hotel, we have bumped into multiple teams and players. 

I also think the proximity to family friendly amenities like Schnepf farms is really cool.

I really appreciate the heads up about the hoa. I wonder if I can request a copy of the hoa documents before making an offer. Is that a thing?

Hello! My wife and I are researching opportunities to invest in the Queen Creek, AZ market. We are from the area and have seen the major improvements and enhancements that enable both STR and LTR rental success. Several operators of STRs in the area are maxing out occupancy at 60%+ still and have some months of almost 90% occupancy. Anyone have thoughts about STR in queen creek?

@Melanie Siegel I think it’s great that you have found a large multi that you can invest in. The “love” word makes me a bit nervous reading about it. The real question is do the numbers shake out? From my recent research, evaluating a larger multi is similar, except the amounts needed for down payment and other costs can be increased. There are some potential cost savings that can be duplicated across multiple properties, but it’s important to understand what the rental history is and has been before making any offers or signing letters of intent. Just my two cents, but I hope the numbers shake out for you.

Asking Price	215000
Primary Inputs
Purchase Price($)	$ 190,000.00
Downpayment(%)	3.5%
Units(#)	2
Monthly Rent($)	$ 1,150
Occupancy Rate	75%
30 Year Loan Rate(%)	4.50%
15 Year Loan Rate(%)	3.90%
Secondary Inputs
Closing Costs(%)	6.0%
Property Tax(%)	1.8%
Insurance(%)	0.8%
Maintenance(%)	10.0%
Property Management(%)	10.0%
Improvements($)	$ 20,000.00
Closing Costs($)	$ 11,400.00
Inspections/Misc($)	$ 600.00

Value (30-Year Mortgage Scenario)
Monthly Rent	$ 1,725
Annual Rent	$ 20,700.00
Value Per 2% Rule	$ 86,250
Value Difference (2% Rule)	$ (103,750)
Annual NOI	$ 13,800
ROI (Pre-Tax)	8.36%
ROI (Post-Tax)	8.1%
CAP Rate (50% Rule)	7.3%
CAP Rate (Assumed Expenses)	6.0%
Annual Expenses
Annual Property Taxes	$ 3,420
Annual Maintenance	$ 2,070
Annual Insurance	$ 1,520
Property Upkeep/Other	$ 200
Property Management	$ 2,070
Total:	$ 9,280

30-Year Mortgage Results
Money Down	$ 38,650.00
Monthly Gross Rent	$ 1,725.00
Monthly Loan Pmnt	$ 929.01
Effective Rental Income	$ 20,700.00
Annual Loan Pmnts	$ 11,148.09
Annual Expenses	$ 9,280.00
Total Expenses + Loans	$ 20,428.09
Annual Cash-Flow (Pre-Tax)	$ 271.91
Annual Return (Cash-Flow + Equity, Pre-Tax)	$ 3,229.76
Annual Post-Tax Cash-Flow (Pre-Tax)	$ 190.34

Hello BP Members!

I'm trying to analyze a deal on a duplex 3/2 unit and 2/2 unit. The home was built in 1974 and needs some exterior work (not the kind that adds value to renting). It looks like it needs a new roof or significant roof repair as well as wood siding repair. What's the best way to estimate the cost? We are house hacking, so our return won't come from our renters alone, we will be fronting the cash. 

The list price is $215k and rents in the area range from $900-$1300 I crunched the numbers and was thinking of presenting two different offers. One at full list with the roof repairs completed, and the other for 20k less and I would take care of the repairs myself. 

Any thoughts? Have I analyzed this the wrong way?

@Meghan Billings My wife and I are looking to relocate to the area and want to either house hack by living in part of a multi we own or by purchasing a cheaper single family and using our extra dollars to invest with someone else. Sounds like the meet up would be cool, but we are limited on time until I get a finalized job offer. Any pointers for the magic valley, specifically twin, that we should know?

@Don Spafford That's exactly why we are looking to move. We purchased a short sale as our first home and have roughly $100k in equity after two years. We're just past the cut off for capital gains, so it's a great time to move.

@brannan beasley Thanks! We're new to this, but I have found a couple places in idaho falls and pocatello that are close to campus. I've got an application in with ISU for a position, so if we purchased we could move in and rent out the basement unit in the fall.

@Jennifer love I am in the same boat. My situation is a little unique because we are looking to relocate back to east Idaho (slower paced life) and want to start investing in a duplex or 4 plex.  

I’m jumping on this thread as well. My wife and I went to school in the area and after spending 10 years away in scorching Las Vegas, we are looking to return to the area. Since home prices are so high in Las Vegas, we will have cash proceeds from selling our home. We are then looking to buy a multi family unit in Idaho falls or rexburg. The plan is to find a 9-5 gig first, then sell our current home and buy a multi in the IF/rexburg area.