All Forum Posts by: Armando Carrera

We've decided to not rent to this large family. Wife and I are willing to risk paying another months worth of costs (but it was in our budget to begin with) than to rent to the one stated above. We have other parties interested and showings that we've somewhat "prescreened" and look forward to meeting them. Ideally, we'd want a single family tenant.

Will keep you guys posted as to which direction we go in the next 48-72 hours.

1 Vote

Phoenix, Arizona

Quote from @Account Closed:

Quote from @Armando Carrera:

Hi everyone,

Our rental unit is ready for a tenant move in. Its a 4 bedroom 2 bath nicely updated home. We've had a number of inquiries and a few visit the home. Our dilemma is who to rent it out to...

The most serious party is a very large family, 3 adult couples and 4 kids. Were very hesitant to rent it out to such a large party because we did such a great job updating the home and we feel that all that work may get damaged in a short period of time. They are willing to pay an additional $200 (from $2,300 to $2,500) if allowed to rent.

Do you guys think we should wait for another possible tenant or give this a shot?

In our budget, we have a contingency of 2 months' worth of mortgage and utilities accounted for.

We have another LTR thats been a breeze to manage for over 6 years buts its only 2 adults living in it they have really taken of the home for us...

Thank you!

Let's see, 6 adults, 4 kids, two bathrooms. Hmmm. Just curious why it takes the whole tribe to afford one rent payment.

I would make a site visit to where they live now and see how they treat the current property. You can drop by with a "document you need signed to further explore their application” and while on the porch, take a quick peek inside. It's best to do this around dinner time when life is the most chaotic.

If the kids are throwing salsa or spaghetti at each other (or better yet, the adults) then you have your answer. If it’s well run, kids are doing their homework and adults are helping with the homework, no problem.

Bob, Thanks for the reply! You gave me a great idea! Its something I will dive deeper.

1 Vote

Phoenix, Arizona

Hi everyone,

Our rental unit is ready for a tenant move in. Its a 4 bedroom 2 bath nicely updated home. We've had a number of inquiries and a few visit the home. Our dilemma is who to rent it out to...

Do you guys think we should wait for another possible tenant or give this a shot?

In our budget, we have a contingency of 2 months' worth of mortgage and utilities accounted for.

We have another LTR thats been a breeze to manage for over 6 years buts its only 2 adults living in it they have really taken of the home for us...

Thank you!

0 Votes

Phoenix, Arizona

Not sure if they do DSCR loans but here a couple of lenders we use for MH homes

Ryan Mills: Teamwork Mortgage

480-392-8086

21st Mortgage

800-955-0021

Hope this helps you

0 Votes

Quote from @Jeremy Holden:

Im an agent and investor in scottsdale who has used 10 down for myself and clients. 10 down used to be super popular before March of 2022. Rate were low, prices were cheaper and it was a great way to use a secondary home loan to buy a rental, long term or short term, especially in the phoenix / scottsdale / az market. The government saw the housing bubble and changed guidlines with fannie and freddie to make the 10 down / 2nd home loan product very expensive (about 4 points to close). Those points have now come down so we're seeing more folks in az using that program to buy from out of state.

Hey Jeremy,

Do you think we'll see 10% down again?

1 Vote

I was hoping to purchase another investment home with 10% down (since we did that years ago in AZ) but lender explained that is no longer possible. Basically why they did that was to deter investors from purchasing locally. Many investors were easily putting 10% down and taking up many of the homes for sale. Lenders (maybe even the state), wanted to give locals a chance to purchase their home.

I dont see a problem with investors needing to come in with 20% down. Less leverage for us.

1 Vote

Quote from @Dustin Tucker:

Hello Armando,

I would evaluate my equity position and see if there was additional equity I could pull out of one of my rental properties.

I would shoot for the Fix to Rent Strategy, I feel like it doesn't take a lot of effort to find a 70% or less property in the current market. Also rental rates are dropping, and we are already seeing rental loan rates in the 5% range, I would expect to see rental rates under 5% by January.

If you are going to be a real estate investor for the long term, why don't have your Real Estate License? You are losing up to 3% on each investment property purchase, also, you get a lot of great tools for evaluating properties, market research, etc.

Hi Dustin

Thanks for the reply! We’ve always been cautious (scared actually) about pulling equity out of our homes.
Getting my RE license is a good idea. Not sure how much it would benefit me in the long run? Paying brokerage fees etc to really only use it once or twice in the next few years?

0 Votes

Hi everyone,

I'd like some advice if you wouldnt mind chiming in.

After closing on our third home, where would you suggest we focus our future on? Work on paying off a home or maybe save for another home in the future?

Here are our mortgages and a snapshot of each one

1) Primary residence: 6.2%, $2,240/month (29 years left)

2)First rental: 3.2%, $1,440/month ($500 CF, 10 years left)

3) Second rental: 7.2%, $2,100/month ($300 CF, 30 years left)

4) Save another 20% for another investment home. This would take us about 30 months

5) Other ideas/ suggestions.

Im all ears.

Thanks for your time everyone!

0 Votes

Quote from @Noah Corwick:

Way to go Armando! Better to buy now before rates go down, price go up even more and crazy bidding wars return.

The buyers who couldn't buy during Covid will come back with vengeance.

Well said Noah!

0 Votes

Quote from @Nicholas L.:

@Armando Carrera

congrats. just remember though that there are lots of expenses on top of PITI. are you self managing this property or hiring a PM?

Hi Nick!

Thank you, we are self-managing the property. We've had our other one for over 7 years and luckily no tenant issues etc. minor handyman things my wife and I typically take care of it.

1 Vote

All Forum Posts by: Armando Carrera

Armando Carrera has started 21 posts and replied 73 times.

Post: What would you do?

Post: What would you do?

Post: What would you do?

Post: Who does DSCR loans on Manufactured homes

Post: 2nd home/vacation mortgages available at 10%?

Post: 2nd home/vacation mortgages available at 10%?

Post: Where to focus on next?

Post: Where to focus on next?

Post: About to close on our second investment property

Post: About to close on our second investment property