All Forum Posts by: Matt Greer

I have to agree. I have worked in two different markets. One had a high cashflow rate with minimal appreciation and the other had minimal cashflow with higher appreciation. A lot of investors have been lured in by the high cashflow but the investors who purchased in the higher appreciating area have had much more of a gain so much so that it's offset the lower cashflow. 

You're not the first investor I have ran into with this situation in AZ. I generally like to look at the market with my investors in this situation and decide if it would be better to refi at the higher rates out there right now, and for this you should talk to mortgage broker with lots of refi options. I have other investors who based off the equity they have have found it better to sell and use the money to make down payments on multiple investment properties and increase the size of their portfolio. I think both are viable options but you should talk to a mortgage broker and look at what is available and the type of cashflow you would have with those new properties.  

I have brother who does lots of real estate investing in the San Diego area and I've been able to show some of his clients and network what the real estate market is like here in Arizona and they're always blown away by how low are property taxes are. I think when investing out of state you have to go through the same fundamental analysis but take into account that it's a completely different market. The taxes and insurance will be different when figuring out your numbers. The growth rate will be different and most of all the laws governing landlord and tenant relations and rights will be different. It's important to keep that in mind when deciding where to buy in an area you might be unfamiliar with.

Scottsdale has a ton of STR's and they have new rules governing them.

@Melanie Johnston I absolutely love how every time you post you include hard statistics and analysis. I agree with what you have to say. I'm also very upset with the Goldman Sachs projections. I feel like they were very misleading and not completely founded in facts or logic.

Awesome find! Good job!

I love it! Cash is king right now! Good job. Is there a certain area of Mesa that you prefer?

I absolutely love this! This is the type of analysis I live for! AZ is doing so well.

A lot of investors will buy a house without an inspection, but they usually have enough knowledge or experience to see things when they walk the property. I'd at minimum get your contractor to look at the house before you go through with the purchase. Another thing that worries me is when a seller doesn't want you to perform an inspection. That's always a red flag for me. I'm fine with taking risk but when that risk can't be mitigated due to someone's outside influence I can't calculate that into my numbers.

I would absolutely target cashflow first. I would look for an area with stable home prices where you don't have to worry about a drop in value but you can cashflow enough to pay your mortgage and any other expenses incurred by the property and have some left over. I have seen too many new investors overlook cashflow and then become motivated sellers themselves. The gains from appreciation are only realized once you sell the property or refinance which could negatively impact cashflow. Focus on short term stability before you do something riskier.