All Forum Posts by: Doug McVinua

We don't accept rent paid months in advance. In Arizona, a tenant can pre-pay rent, move in, and request a refund of the pre-paid rent. Not a good situation if the reason you approved the move-in was due to the pre-paid rent. Multiple other issues can arise, such as eviction can be more difficult, what if the property becomes uninhabitable, and on and on. Just don't do it.

Arizona has a healthy rental market. Vacancies are very low. Why take the risk?

Arizona does not have rent caps. It's market-driven, with the exception of section 8, which offers scaled rent. You don't have to accept the rent Section 8 offers if you don't want to. In Phoenix and Tuscon, you can not consider source of income, which means you must be willing to accept Section 8 programs. However, accepting Section 8 programs still allows you to screen tenants properly. Please further clarify your question if that isn't the area you were asking about.

I will take a free market any day! Let the market determine prices. If the rents become unaffordable to the masses, the vacancy will increase, and the rent will drop. If the numbers work, investors will purchase, will develop, and units will increase.

A free market will find its balance of supply and demand.

As President of the Phoenix Chapter of the National Association of Property Managers, I can confidently recommend checking out the Phoenix NARPM Chapter website. We have many professional members, including my company, that might be a good fit for your needs. NARPM members commit to excellence and are known to stay abreast of changes, best practices, etc in the industry.

@Peter J Struck The MLS, Crexi, and I get a few from wholesalers now and then.

@Samantha Griffin Your 2nd question regarding long-term financing is a very good one and one you should go into with eyes wide open. Some properties are difficult to finance, some are not possible with traditional lenders. I was working on a 13 plex recently, and no one wanted to lend on it, so we never executed a purchase offer on the property. Yes, we might have found hard money, but very few of these work long-term with hard money.

Manufactured homes, especially older ones, are very difficult to finance. Sometimes, they are cash only. Please do your homework on this property before pulling the trigger. Find out how old the units are, when they were manufactured, whether they have HUD plates, etc.

I'm a huge proponent of BRRRR and have seen it used to significant advantage and reward with the right property. This one may not be the right one, you need to find that out as soon as possible to protect yourself.

Good luck, and congratulations on having the courage to take the steps! Many investors never pull the trigger, and you are well on your way, that is clear.

@Samantha Griffin The first question you posted was about the Non-Renewal of a Month-Month tenant. Arizona Landlord-tenant law allows Non-Renewal of a Month to Month tenant. If Notice is given prior to the renewal date (generally payment due date), then the tenant is to be out at the end of that subsequent period. For example, I gave Notice to a Month to Month in September (Certified Mail or in Person), October rent is due, and they are to be out by the end of October. This is predicated on the lease in place, which could have a different notice period than my example. My example is based on the most commonly used lease in Arizona. 

@Bjorn Ahlblad , I run the same way, one year at a time. Always plan for the best, plan for renewal, and plan long term but leave yourself an out just in case something changes.

@Cory Rickard Location is generally extremely important in the Short Term Rental world. You want to be near entertainment, restaurants, etc. that draw.

Chandler downtown has done very well the last ten years or so, attracting restaurants, a new theater, coffee shops, etc that would make that area attractive. I happen to have a condo/townhouse for sale in downtown Chandler that would make a great short-term rental. It's a short walk to downtown and all that is offered. The property has a nice two-car garage, three bedrooms, 2 1/2 baths, a community pool, and more. It's an easy lock and leave as the HOA maintains the exterior. It has a long-term tenant in it right now.

@Bei He Many of our investors that own property in Arizona and manage properties have had good luck with:

Clear Choice Insurance LLC

20261 E Ocotillo Rd #118 Queen Creek, Arizona 85142

Office Phone: (480) 719-2812