All Forum Posts by: Doug McVinua

@Tyler Duffin Rentals in SanTan Valley can and do perform very well if they are in the correct location. 

Traffic/drive distance seems to be a huge factor in tenant preference for the area. Some of the areas may only be a mile or two further but with the current roads it can add 15 minutes to a commute. Commute time isn't the decision impacting everyone but it's generally better to be in the area with highest demand.

Vacancy for properties we manage in San Tan Valley has been very low as they often meet a price point that can't be matched in Gilbert, Mesa. Most of the vacants I see are either bad locations or have deferred maintenance that make them less attractive. Good tenants are attracted to maintained properties.

The other side of the conversation is on the purchase/acquisition cost. The properties outside of the current high demand area tend to also be the better value so if you are a long-term investor maybe you buy a little further out with the mindset that the roads will be built.

I'm a Real Estate Broker that lives and offices in Gilbert, AZ. 18 years full-time real estate in Arizona, all in the SE Valley (Gilbert, Chandler).

Gilbert is a very healthy upper middle-class suburbia community. Its a little hard to make the numbers work many times and many investors end up in surrounding communities like Queen Creek, San Tan Valley, Mesa, Maricopa etc.

Gilbert is fantastic, rentals are in high demand, vacancy is very low, lots of great factors other than the purchase price makes the numbers more challenging. Appreciation has been strong since 2010.

Glad to answer more/other questions for you anytime.

@Devan J. Sounds like a perfect fit for a 4-Plex! you could buy as an owner occupant of 1 unit and utilize low downpayment owner occupant financing with great terms.

Rent the other 3 out and live for free essentially allowing you to save for your next purchase! While you live there you get good control of the building, bring the maintenance up to tip top etc

Don't wait too long to start your investments! Sounds like you are the perfect candidate since a 4 plex unit would be close to your apartment living and you could do it for a year or so. Live in it for a year and you can move on to another.

@Josh Oaten Most of the 1st-time buyer programs are aimed at owner-occupied homes.

Using a 1st-time buyer program designed for owner occupancy as a tool to purchase an investment property could easily be construed as mortgage fraud.

1st-time buyer programs can be very beneficial if your desire is to reduce capital outlay at the time of purchase. You are correct in that most have a price/premium to pay for that reward. Often times the initial costs of financing are higher and often at a higher interest rate also.

Some of the grants available are forgivable if you occupy the home for a period of years!

Now using a low down owner occupant program, living in the home and then eventually turning it into a rental can be very favorable! Most are going to want approximately 1 year of occupancy unless you have some sort of extenuating circumstances that compel you to move out of the property sooner. Banks/Lenders have gotten pretty good at identifying the occupant of a property and will engage.

Not trying to burst your bubble by being negative on this subject. Glad to refer you to actual mortgage lenders for review regarding programs that might fit as I'm not a lender. Just an Arizona Broker for 18 years.

Great question and always/almost always glad to help out!!!

@Hakeem Valles  

Most of them experience low vacancy as the demand has been high enough that while some may not be occupied completely during the summer most of them are still under lease. Many keep the homes for multiple years, get local jobs that keep them around, players report early, a few take some classes in the summer etc. Others go vacant in the spring but are generally picked up pretty quick because the students learn pretty quick that if you wait they won't find anything right before school starts.

I also tend to prefer more mature students, stay away from the freshman, lol. Grad students have worked out pretty well for a couple.

@Hakeem Valles Welcome to Arizona and the world of Real Estate!

Tempe does well with rentals, geat location in the valley being close to ASU, the Airport, freeway access etc. Lots of great choices to make in the area!

Not everyone has the fortitude to deal with student housing, not sure how you feel about that topic? 

Smart young man to be thinking of investing now so later in life you are a real estate magnate with many properties cash flowing that you can live a great life off!

Glad to answer any and all questions you have regarding AZ real estate, rentals in AZ etc.

@Diane G.

The Islands and Sierra Tempe are both generally considered good neighborhoods to this day. Part of the Islands is sliding some just due to age and other parts look great. Sierra Tempe is very desirable because of location to the I-10 and also the school etc.

The greatest cause of pain is related to the timing of your purchase, better stated as your bad timing. You purchased both as the market was declining unfortunately. The market bottomed in 2010 and has generally been on a recovery since. Many parts have now recovered to near peak levels and some are still trailing a little.

Jobs are healthy, the state is doing great and expectations are for continued strength in the area.

Always happy to run some actual comparable for your property if you want to know very close what the value really is. That offer applies to rental and sale prices.

@Michael Johnson

Would welcome the opportunity as a candidate for Property Management in the greater Phoenix area. 

@Wes Blackwell

The agent population in the greater Phoenix MLS is in excess of 30,000. Phoenix has 4 local boards of Realtors the own the MLS as stated by @Justin Owens above. The total active license population in Arizona is over 50,0000.

Phoenix is a great market, reasonable affordable housing, job growth is on a great path, property taxes are low, abundant sunshine, very fair with investors and landlords!

Come join the fun!

@Jack Brown

Lenders watch this area pretty close so as not to be involved in mortgage fraud. Mortgage fraud is not a good place to go.

I have had a number of 2nd home/vacation homes become rental properties. It has almost always been stated that if the original purpose was truly as a 2nd home but due to circumstances the purpose gets changed things are generally OK. Circumstances should be something real like health, financial change, divorce, death etc.

The properties I have seen change purpose have never had a loan called due etc that I know of but you don't want to be that one case someone decides to chase.

Lenders seem to have lots of data anymore, we see them watching utility billing etc to determine occupancy.