All Forum Posts by: Stone Jin

@Kusha Karvandi, the last 6 properties I bought were all in East Mesa and Apache Junction. I bought them all last year, I haven't bought any this year. I would say if you are buying for cashflow, you may have some luck with wholesalers as they tend to bring product a little better than straight MLS listings, the listings may not work for flippers but for buy and hold some are not terrible.

@Bob Okenwa@Martin Mondejar, I would agree with Bob that the rent to price ratio doesn't seem to align with the rest of the Phoenix market.  I would expect for a 160K house the rent would be around 1100 not 2100, however if you did the full rehab and the property is really 360K then 2100 would make more sense.  With that said, the brrr strategy may not offer much cashflow if you refi out at 75% of 360K, 270,000 mortgage would be covered by the 2100 rent but not by much.  

Did you get sent this property by a wholesaler?  I would check the comps again, most wholesales listings I've seen are not leaving 200K on the table.  Make sure you are certain on your values not just based on whoever is selling you the house.

Good luck and stay vigilant.

Stone

@Kusha Karvandi, I've stopped buying in Chandler for quite a few years as the returns are pretty sad. I would say SFH rent faster than condos as you are not competing against the thousands of new units they are bringing online every year.

@Paul Salmela I would just look at it as a math problem.  Lots of people are telling you to say no and plan for vacancy and turnover.  Based on your rents and what you think the turn over costs would be, just compare to see if it is worth the hassle.  like if I know i'm going to lose a month's rent and spend 2-3K in rehab, then it may be better to work out a deal with the current tenants.  Offer to pay 50% and say that's the best you can do as it was their choice to get the shots.

I provide fridges in most of my units and occasionally one goes out and the tenant's food spoil (shockingly all my tenants go and spending hundreds on meat the day before these things happen).  I just pay them out for food and inconvenience and move on with life.  

Hi Mary, the privilege tax for each city is now handled through the state of AZ.   The business license for each city is also handled through the state website.  

Get a HELOC on your current duplex and use that money to buy the next. You need to have some money in reserve, basically with only 25K after the down payment it's going to be dicey until you rebuild the reserves. 75% of 133 - 88k owed, you may be able to get a HELOC for 12K, maybe a little more. Good luck.

If the deal has a lot of meat I'm sure you can find hard money or private money.   I don't think anyone will just give you a blank check to go shopping.

You should have a roofing company go out and give you an estimate as well so you know exactly how much to ask for.   I guess your cash on cash return will be decent once you move out since you are in it for only 3.5%.  

on that recent pod cast with @Alexander Felice, he talked about deferred closing.  Can you use hard money to purchase and then rehab and then use deferred closing?  Just thinking out loud.

Hmm, how likely is that scenario?  Is the concern that all your buyers will just return your houses back to you because they can no longer afford it because their salary hasn't changed however eggs are now $40 a dozen or is it that the price you are selling to them is now way under market in terms of purchasing power?  

The concern that one should have with lease option is when the real estate markets starts going down and now you are underwater on every property and all your buyers just returned the houses back to you.  The rents no longer are strong enough to cover the mortgage.  I know investors who got wiped out in 2008 by doing this.