All Forum Posts by: Stone Jin

85225 is downtown Chandler.  A lot of older multi units surrounding downtown are in C class neighborhoods.  If you are thinking of purchasing one of those, rents are more like 600-750.  The buildings usually need a lot of work.  

DT Chandler is booming, but it may be awhile for those old neighborhoods to turn.  I would suggest driving the neighborhood to get a feel.  I drive it everyday when I leave my house.

I have several condos built in the late 90s near dt Chandler, I know I rent them for 1000-1100 all day long.  They are 2/1.5 about 1100 sqft.  

@Greg Tomita.  Good luck with your new adventure.  Are you planning on using property management or trying to manage remotely? 

We owned and operated 4 STR in Chandler for 7 years. Feel free to ask any questions you may have and I can try to help.

If you are using PM, then they will take care of the cleaning and maintenance, but they charge upwards of 25%.  If you plan on managing remotely, you may have a whole host of issues that may not have been considered, for example if a blender breaks how do you handle that situation.

Best success!

Stone

It depends on which asset class you are invested in. Low income will be fine as high end apartments aren't a threat to your potential base of renters. We focus on B class SFH, we do not feel that high end apartments are a threat. Our rents for a 3-4 bedroom is about the same as the rent on a 2 bedroom apartment in one of those communities.

If you are in high end condos, then maybe you should be a little worried.  However a lot of high end condo investors are short term rentals investors, so there is no threat.

In a growing market like Phoenix, I think there is still a high demand for housing.  So if you are offer a good product at a fair price, it'll get rented.  If that balance is misaligned, then you would have issue no matter the market climate.

@Surendra Chawla The question you need to be asking yourself is what kind of return you expect on your investment.  I assume you are doing a 30 year fixed 25% down conventional loan.  If you are looking for no cash on cash return and hoping for appreciation on price, then you can buy almost any house in Chandler and be roughly net 0.  If you are looking for 10% cash on cash return then you likely won't find any house in Chandler.   I would recommend you do some market research on Zillow and pull up the for sale and for rent listings on the same screen and then do the analysis to see what subdivision meets your criteria.  The Phoenix market is not what it was in 2011 where you can make double digit returns on basically everything on the market.  Today's market returns on retail/mls are very compressed.   

I would agree that certain renters are fine with the commute.  I have had people apply for one of my properties in Apache Junction/East Mesa and work at Intel.  It really depends on the price point, I wouldn't just focus on 1 group of people.  It all still boils down to price of purchase and market rents.  There are plenty of qualified tenants that do not work for Intel.

Hi Surendra, which Intel facility are you referring to as there are 2 in Chandler. The pickings are going to be really slim or non existent to find a SFH in the Ocotillio area. Generally under 200K market in East Valley is on fire. Currently I don't see a single SFH in Chandler under 190K on MLS. For that price range you may have to look further out in Mesa/East Mesa/Queen Creek, those are all about 25-30 min drive to Intel.

You may want to consider a condo if you want to be very close to Intel.  If you are paying all cash then you shouldn't be cashflow neutral, if you are going to leverage getting cashflow neutral isn't too difficult to find.

Good luck.

I don't know, give them a call and see.  

I use Bryant Pest Control for 90% of my bug issues. 

Hello all,

We are looking to start buying and holding residential SFH in Ohio. I have a question on the property tax and how it is calculated. Looking at the county assessor website, there is a top number then there are a number of deductions and then a final number. My question is that which of the deduction are still applicable to the investor. Column1 is 1st half and column 2 is second half.

I assume that house bill 920 is always in affect, non business credit will be applied if I don't purchase the propety in LLC otherwise if I do that that deduction will be removed, and I assume that owner occupied will be removed regardless how I take title as long as I use it as a rental. Thanks in advance

Example

Tough lesson to learn, those are the ones that you grow the most from.  I've had a few tough lessons in my investing career and the scars to prove it.  You just have to take the hits and keep moving forward.  <insert cutscene from Rocky 6 where he's telling his son to take the hits and move forward>

Stone