All Forum Posts by: Doug McVinua

The Arizona Landlord Tenant laws are written such that a Tenant can offer to pre-pay rent but also has the right to request the pre-paid rent be returned to them upon request. Yes, you could move a tenant in under the context of pre-paid rent and then the tenant could request a refund of the pre-paid rent and you would be lawfully required to refund the pre-paid rent. This is not predicated on the property condition changing etc, the tenant can request for any reason, hence it is not a practice I recommend or conduct in Arizona. #RiskReductionforLandlords

Don't deviate from normal screening, it will bite you!!!

@Vincent Treola Jr. It would be a coordinated effort between the City of Mesa and your plumber to split the metering. It sounds like it should be pretty easy to do since you already have shutoffs in place to each unit.

The high water bill is a little concerning! Do you have a leak at the property? With everything off in each unit does the Meter still run?

@Jennifer Conti We manage a number of rentals in San Tan Valley and they are performing very well. Vacancies are low and demand is always high when one turns over. 

Many of your tenants have also renewed and that really improves the numbers for a property when turnover is reduced.

@Kurt Granroth You are correct that Gilbert is generally hard to make the numbers work but the surrounding areas still offer opportunity and don't require you drive an hour or more just to do a quick checkup.

Let's connect and I can send you a few that have potential.

@Kurt Granroth Welcome to BP and all that it offers from a Gilbert, AZ based Broker. Love Gilbert, AZ, great place to live!

Buy and Hold opportunities exist and I would be glad to explore some of the different types and areas of the east valley that might be a fit for you. The skills you have will be great and offer you an advantage.

BTW: Love the "You don't know what you don't know", one of my favorites also!

@Lynn Harper   The tenant is very likely in Breach of the Lease terms if you are using the standard Arizona lease and it is written in a common manner.

I would first service written notice via certified mail that the issue be cured.

The tenant is damaging your property outside the normal wear and tear and it could result in eviction if the tenant continues the practice.

TIme to get tough on this one!

@Ronald Chandler Welcome to BP and Real Estate in Arizona!

The opportunities are plentiful!! Your background will serve you well.

@Ben F. The Phoenix market has been on an overall positive swing since 2010. The down cycle started in 2006 and ended in 2009/2010. 2010 is the recognized bottom for most areas of Phoenix, at least in the typical investment portfolio range.

Appreciation was in double digits for a few years and has, for the most part, settled into a single digit appreciation cycle. Inventory is low at the moment, current active residential listings sets at 21,813. The market could easily handle 30,000 active listings and still, be balanced. Decent properties are selling quickly.

Buying for one year will depend on what he is looking for, where he wants to be etc. The Phoenix metro area is over 100 miles diagonally so most buyers choose an area that fits their needs regarding commute time, area, social activity, schools, price, etc depending on the buyer.

Buying for 1 year does come with some element of risk if appreciation is 6% for a property and the overall selling costs (Title, Realtor etc) is 8% it may not look so good! Many areas have exceeded 10% year over year and continue to do well.

Rentals are renting very quickly, most vacancies I have experienced multiple applications in the first few days. Canadians have sold a lot of investment properties and taken the money back to Canada causing a shortage of decent rentals.

Lot's of factors to consider for your friend! Happy to answer any further questions.

@Allison Spencer I'm somewhat curious as to the mention that you are 5 years in and still at a negative $200 per month?

Assuming 5 years ago (2012) was for the most part still near (2010) the low end of the Mesa market. That most likely explains the equity position, congratulations!

Have you increased the rents for this unit over 5 years to improve your cash flow? Are you maximizing the rent potential?

Are you in a crazy high HOA?

The 10-year note is aggressive and of course, has short-term pain, you know all too well! lol

@Hunter Johnston Welcome to BP and thank you for serving our great Country!

Investing starts with one property, you could House hack the first one with a VA loan and have very minimal out of pocket expenses.

God Bless the USA!