All Forum Posts by: Doug McVinua

@Anna Smith

We manage properties with pools and I agree with @JD Martin above and would add:

1. We maintain professional pool service provided by the landlord that includes weekly service of chemicals etc. (average $95 per month)
2. Expenses will be higher as pools require pumps, filters, valves etc that require periodic repair/replacement. You should also factor in the cost of resurfacing a pool in AZ every 12-15 years. We don't winterize pools in the Phoenix market but obviously that would apply in other markets.
3. Pools in Arizona are in demand and command higher rent so vacancy is generally very low.

@Josh Oaten

HOA's in the Phoenix market are extremely common for most property developed after the mid 80's. HOA fees tend to run from approximately $40 - $300 per month. Most single family neighborhoods are in the $65 per month range on average. The highest fee's are typically for Condo's etc where significant amenities and maintenance are provided.

The basis for HOA is that the plat of land when developed leaves development and maintenance of the common area a responsibility of the HOA. Of course this includes Rules, Regulations and Enforcement up to the HOA. The common areas, greenbelts, parks, border areas etc are generally HOA responsibility as well so the City ends up maintaining the streets, water and sewer etc but the rest is HOA. It is one area that contributes to lower tax collections as the HOA's maintain the common ground, parks, in some cases pools etc.

Are HOA's good for rentals? I tend to say yes they are fine unless someone desires to not maintain the property well. The HOA will send us notices of weeds, trees that need trimmed, paint as needed etc and for most of the owners we represent they are fine with those items most of the time as they also relate to the property value over time. Once in awhile I get aggravated by an overzealous HOA enforcement of an issue but for the most part they are pretty decent to work with.

Some HOA's offer community pools, multiple playgrounds etc that is an attractive amenity for attracting tenants and for us the maintenance is shared with the other owners versus having a private pool that we are required to maintain. Pools are popular as it tends to get a little warm in the summer in Phoenix. (attempt at humor)

Good question!!

@Stephen Adams

Mesa has some good spots that are solid and rent well but also has some higher crime spots to avoid. Probably could say the same re Glendale.

I manage a number of Mesa properties and thankfully all are rented. One Condo complex near AZ Ave and Guadalupe is starting to slide and I think the investor may bail on those in the next year or two. Might still buy in Mesa just different area, also a southern CA investor.

Don't be afraid of the extreme suburbs like San Tan Valley, those are renting well also if chosen correctly. Maricopa is OK as well, preferably north of the tracks for higher demand.

Admittedly I'm more of a fan of East Valley, it's where I choose to live, crime is very reasonable and housing is still reasonable.

@Stephen Adams

Where in Arizona have you looked at? Trying to actually be on target and helpful for your purpose.

Arizona in general is pretty balanced, friendly towards landlords and we are having great success in finding good quality long term tenants for the properties we manage in the Phoenix market.

@Cody Lambson

Solar Panels are not contributing significantly to resale value outside of a niche of individuals that really want solar. 

I don't believe the investors I work with and or manage properties for would be willing to pay much of a premium at all and the panels would be a negative for many. The negative would come from potential maintenance issues, replacement costs etc.

Tenants might like them if a case could be made for lower electrical bills as you have found out.

Just my 2 cents!!

@Domin Car A few areas to consider in the Phoenix, AZ market would be Queen Creek, San Tan Valley and Maricopa. The areas are affordable suburbia that rent well. Maricopa is going to be the most affordable at this time out of the bunch.

@Sippy Hira Arizona is very Landlord friendly and expected to stay that way for some time. The Arizona Association of Realtors works closely with the Department of Real Estate, Legislature and Governor to maintain a good balance between Landlord and Tenant. 

We have found some nice 4 -Plex units for clients in Tempe, Mesa, Chandler and Phoenix.

Job growth is high and the economy looks solid in the Phoenix market.

@Michol Murray

How painful is the monthly negative cash flow? If you have good income/cash flow and the pain is manageable then maybe you consider another property since your objective is long term hold.

The negative cash flow/value property should recover in time as Chandler is such a good area. Buying the 2nd property will help offset the cash flow issue and in the end you are closer to your long term goal.

Disposing of the current property would either deplete cash or damage your credit via the short sale path. The short sale path would also eliminate a new conventional loan for years.

I manage a few properties in Arizona as a result of owners being upside down and electing to keep the property at least until they are whole. The market took a brutal correction!

@Richard Lai

Eric Wright with Amerifirst Financial  is a great choice if we are talking traditional mortgage broker. Eric has almost 20 years of Arizona Lending experience and has done a number of 4-Plex's for clients of mine.

We have also done some hard money purchases with repairs that we refinanced into traditional financing after the major repairs were completed.

Welcome to BiggerPockets @Dennis Dougherty! 

This is a great site with lots of quality information and also experienced investors willing to share the lessons they have learned.

Plug in and learn, dont be afraid to ask questions!

Welcome!