All Forum Posts by: Melanie Johnston

@Varun Penmatsa if you live in the SE Valley you live in the center of some of the most attractive cities for investors. I was out scouting for a BP investor today in Gilbert and Chandler. Great places for newer built homes that attract qualified tenants. As @David Avery says, certain parts of Mesa can also generate healthy rents.

Most of the investors I work with want to stay under $350,000. And there are smaller properties available at or under $300,000...like the one I'm writing an offer on right now.

Of course the issue is, at that lower price point you are now competing with first-time homebuyers and move-down buyers, so that can make a tough market even tougher.

The other offer I wrote tonight is for an investor buying his first single-family property, a 2020 build, in Casa Grande.

True new builds are an interesting play because they are almost always worth more by the time you close on the home and get the keys. Instant appreciation.

Let me know if there is anything I can do to help!

Melanie

@Julie Hauser Yes, Julie, I have been fortunate to meet and assist several BP members in their purchases and sales of Metro Phoenix properties. I would love to help you! Feel free to message or call me and we can talk more about what you want to achieve.

Melanie

@Jhonathan Bituin I am not familiar with Mynd Property Management. When I search their name within BiggerPockets, some references to Mynd pop up. Maybe you'll get some helpful feedback there.

Melanie

@Julie Hauser I would like to recommend a property manager I met through AZREIA. Her name is Barbara Habbeshaw of AZ Residential Management. I have recommended her to BP investors who I've helped buy SFH in our market and they love her. You can google her company name to get her contact info. (BP sometimes gets cranky when I share links.) She runs a tight ship and is very careful in her tenant screening. I'm a big fan. Hope that helps!

Melanie

@Jeffrey Kay Congratulations on starting your investment journey! We all wish we had started at your age.

@Paul Welden is right. Duplexes sound like an awesome idea, but in our market they present challenges so they aren't often the best option.

There is always a demand for single-family homes to rent. And there is a demand for long-term furnished rentals or rentals by the month in destination cities like Scottsdale. These are much easier to manage (and are taxed at a lower rate) than properties renting for less than 30 days.

While I have helped several BP members buy and sell Airbnb properties in Scottsdale, those require constant management and are best for owner/operators who have the time to devote to them. STR management firms are an option...but charge strong fees.

Your budget will get you a nice starter single-family home in Mesa, Chandler, Gilbert and Queen Creek. Or a lovely condo in Scottsdale (that will most likely have an HOA requirement of 30-day rentals).

Be aware that we have a very competitive market right now, due to low interest rates, people moving here in record numbers and limited housing inventory. In a balance market we would have 25,000 active listings. We currently have 4,512 active listings--and that includes everything from mobile homes to mansions. 😳

Buying in today's market requires having your financing locked in and being comfortable enough to make a decision when a good property becomes available.

Feel free to ask me anything!

Melanie

Hi @Robin Custodio that's awesome that you have your financing ready to go! Let's find a time that's good for you to have a phone call and start exploring your options.

Melanie

@Austin Eberle

@Jake Kain

Jake is right when he says there are weird things going on with more than one person trying to wholesale the property. Someone who I think has a good reputation and emails properties he uncovers is Andrew Werner (known as WingmanWerner on Instagram).

A better bet for you, Austin, might be to connect with fellow investors at AZREIA. They have a large monthly (online) meeting and then they have separate subgroups on buy and hold and fix and flip. Connecting with people there, rather than trying to get lucky from a mass-blasted list, might yield what you're hoping to find.

I would also recommend following Steve Trang (steve.trang on IG), who has his own awesome podcast and a monthly meet-up that is back to in-person, I believe. That room is definitely filled with major wholesalers in our market, so it's a good place to meet potential sources.

It's great that you are local so you can take advantage of these resources.

Melanie

Hi @Robin Custodio let me be the first to welcome you to BiggerPockets!

As far as the best way to house hack, it depends on your budget. Househacking a nice condo or townhome could be a great option if the numbers work out.

Knowing your budget will also help you narrow down the areas of Metro Phoenix that would work best for you.

All types of properties have appreciated in our market, including townhomes and condos.

Speaking to a lender who works with investors will be the short track to knowing what you are looking for. If you need recommendations for local lenders (some who also invest) I would be happy to share that with you.

Our market is moves quickly, thanks to limited inventory, but there are always opportunities out there!

Melanie

@Young Hwang I love a challenge so I went to the MLS for the answers. There was a mention of Sun City condos being under $100,000. That is true, however they are age restricted (you have to be over a certain age to own there) and they have these HOA fees:

Total Monthly Fee Equiv: $1,586.33

Cap Imprv/Impact Fee: $2,000

Cap Impv/Impt Fee 2:$3,500

Not a great option for cash flow. And Valley wide there is nothing under $100,000 that is above C-/D+.

If you open your budget up to $135,000 or $150,000 you have some better options. But they would likely be B-/C+.

I actually saw 2 options with potential in that price range.

Wish I had better news to report, but that is what's available in our market today.

If you stalk the market for the least desirable condo in a better location, perhaps you could work with someone like @David Avery to add value.

Hope this helps,

Melanie

@Young Hwang Multifamily or single family? Do you have a budget in mind?

Melanie