All Forum Posts by: Melanie Johnston

@Louise McEwen congratulations on asking smart questions. I listen to the leading housing analysts talk about our market now, our continued appreciation and how many people are moving here for our lifestyle and, for at least the next year, appreciation will continue to rise. Even if we were to have a Black Swan event (pandemic?) our appreciation is projected to slow but not decline and just be more in line with traditional years.

I was talking to a couple today while showing houses and they asked the same question. I think it all comes down to this: Every month you are paying someone's mortgage, either your landlord's or your own. Wouldn't you rather get the tax credit and have a property to launch your portfolio? The analysts are suggesting you not wait any longer. (Tina Tamboer of The Cromford Report). But everyone should do what they feel is best for them.

Here's some data Tamboer shared at Monday night's AZREIA Meeting:

And, as you know, Phoenix rental rates keep going up as well. Pretty strong jump in 2020.

Hope this helps you in your decision making.

Melanie

@Frank Mendez a new build can be a great option for all the reasons you said. I helped a BP investor from Texas 1031 exchange into a new build in Goodyear. He paid $323,000 for a 3/2 in a small KB Home community, waited 4 months to close and immediately rented it out on an 18-month lease. Won't have to worry about the AC, etc., for a while as 1) it's new and 2) it's under warranty. New builds can be competitive, I learned recently. I was showing a couple homes near Norterra in North Phoenix. The sales agent said they had a 200+ person interest list. And this was in a higher price point. All those people won't remain on that list when it comes time to contact them, but still. West Valley is the way to go.

At the AZREIA meeting on Monday night they showed the map of future development for Metro Phoenix (you should be able to find it on the Maricopa Association of Governments website). Development will be occurring so far West and Southeast that Goodyear and Avondale will be the "center of town."

Best of luck!

Melanie

@Austin G. You are very welcome. Best of luck!

Melanie

@Miguel Bautista Hello! Congratulations on your first BP post.

If you are going to live in one of the units, I would consider looking in Phoenix (central/north/east) and Mesa. They are most likely to be in neighborhoods you would like to live in. The best way to judge what's on the market is to set up an MLS search in your price range and sort through the options and get to know the neighborhoods. Let me know if you need assistance with that.

Melanie

@Jason Clark My pleasure!

@Jason Clark Yes, this is allowed. I always pay a referral fee to any agent who refers a buyer or seller to me. I get many referrals from California agents, which is awesome. No reputable agent would ever stiff a referral partner. I gleefully pay the referral fee for helping clients I would not have met otherwise.

Feel free to send clients my way for the greater Metro Phoenix area, including Scottsdale!

Melanie

@Gayan Wijeratne You will probably want to talk to a few lenders. I can connect you with a lender who is also an investor. He enjoys working with people who are getting started, so message me and I'll happily share his info.

Hi @Leilani L.. Congrats on being enthusiastic about investing and wanting to get started. Arizona is attracting a lot of Californians who are looking to move here and/or invest.

Besides being a strong market with a diversified economy, Metro Phoenix is a fun place to live with lots of outdoor activities and opportunities to enjoy the sun. With your investment budget of $20,000, you might want to get started doing a househack.

Moving here and buying a place, where you can rent out one or two rooms, would help you build equity and potentially cover your complete mortgage payment. Having lived here since 1981, I know a lot of great areas and pocket neighborhoods that offer value for your investment. 

Melanie

@Gayan Wijeratne you are right that Scottsdale is more expensive than other areas of Metro Phoenix, but there are opportunities that pop up from time to time. And rents are very strong in Scottsdale. Other areas that are very attractive to renters are Mesa, Chandler, Gilbert and potentially San Tan Valley, although that is a bit further out. There is a 3bed/2bath in Chandler that was just listed at $305,000 and went under contract quickly. A property manager I know believes it will rent from $1850-$1950. Most SF homes that are recently built (so they have neweer mechanical systems) are averaging $350,000 sales prices, and those are going up, as others have commented.

But there is a reason prices are continuing to climb. We have a well-diversified economy, weather and proximity that attracts business creation and 300+ people moving here every day. Inventory is low, so when you have your financing worked out, be ready to move when a good opportunity hits the market! I know a lender who is also an investor and likes working with investors.

Melanie

Hi @Joel Gonzalez Welcome to investing in Arizona! Metro Phoenix is made up of many cities. Within those there are many communities, each offering their own pros and cons, from an investment standpoint.

Knowing your budget is key to sharpening your search. Are you hoping to find a small multi-family property, or do you prefer investing in single-family homes? 

If you're able to share your budget and the type of property that interests you, I can offer some options to help you get started.

Melanie