All Forum Posts by: Matt Morgan

I'm not familiar with the market in Long Beach but I'm questioning whether or not you'll be able to cash-flow if you're 100% leveraged. Can you post the numbers so we can evaluate the deal?

If you can find a deal within the next month or two, I think leveraging that $110,000 with hard money to pick up a flip is a pretty solid idea. Homes with ARV's under $300k are going to move fast and are probably your best bet.

I see more potential in the single family route. I think there is a lot of upward price pressure on homes between $150-200k and you're bound to see some appreciation. Plus you can rent out rooms in your house to generate some passive cashflow and help pay your mortgage.

I think multi-family is terribly overpriced and you may not want to live in the kind of area that a $200k duplex/triplex would afford you.

Hey Cameron, welcome to the site. 

The market in Phoenix is very competitive, at least in the lower price ranges and especially among investors. 

Are there any specific questions we can answer?

PRICE: $22,000

POTENTIAL RENT: $775

Great potential here in a 3 bed/1 bath all brick townhouse. Units are separately owned with no HOA or condo fees.

Roof, hot water heater and furnace all new within the last 3 years.

Low taxes of just over $1,000/year

*Unit next door available as well. Would prefer to find a buyer interested in both. Will sell as a package for a discount.

$2,000 non-refundable earnest money to accompany all offers. 

House is on a lock-box and can be seen any time. 

There's really not a good reason NOT to get your license. It's cheap, classes are  flexible, and it gives you an extremely useful tool to use if you're going to wholesale. A very small percentage of sellers that you come in contact with are going to fall into the motivated and distressed category. Having your license enables you to take advantage of that desire to sell by listing their home as an agent. 

There are currently 10 multi family properties on the Phoenix MLS under $125k. I personally would not want to own a rental in any of the areas those areas but if you are up for that kind of investment, you're probably going to have to be a little more hands on than a being a state away will allow.

I just sold 4 properties out there in a package. All were rented and cash-flowing. I was getting hit with a lot of maintenance costs and I was suspect that my properties weren't being managed properly. Because I'm 2000 miles away, this caused a lot of anxiety and stress that I would just prefer to avoid. I was also able to make a healthy profit even though I only owned them for a year to a year and a half...had I not been able to cash out at the prices I did, I probably wouldn't have done it. 

The 2% rule is not a good metric by which to measure a rental's potential for cash-flow. 

Although Phoenix is not the greatest cash-flow market, it's better than the rent-to-price ratio would make it appear because of things like low insurance, low taxes, and not a whole lot of major capex to worry about. (especially if you buy a stucco'd home with a tile roof)

Add to that the fact that Phoenix typically has better than average annual appreciation and you've got a good mix of positive investment attributes. Recent Case-Schiller numbers have Phoenix at no. 3 on a MTM appreciation basis.

As far as Phoenix housing being overpriced, I would wholeheartedly say no. Phoenix has an extremely diverse and still VERY affordable housing stock that probably matches or beats nearly every other city it's size. Home prices are still well below 2007 levels, although there is a lot of upward pressure in the sub $250k range as inventory is becoming more limited. 

If you want a well-rounded investment, I'd say Phoenix is a great choice, and should be no. 1 considering it's where you live. If your only concern is cash-flow, look towards the Midwestern markets.

Welcome to the forums! I love it up in Prescott - are you planning on investing up there or down in Phoenix?