All Forum Posts by: Melanie Johnston

@Serge Pedroza Hi, Sergio. I am an agent in Metro Phoenix. Last year I helped several BiggerPockets members buy and sell properties around the Valley. There is a lot of interest in our market because rents are strong and we continue to attract more than 300 new residents per day, with the majority coming from Texas and California. If you'd like to learn more about our market and share more about your investment goals, feel free to reach out. I can also recommend an investor-friendly lender.

Melanie

@Jessica Du I have lived in Scottsdale for several years, so I'm happy to share my experience. You mention North Scottsdale. Most of the neighborhoods in North Scottsdale have HOAs that often require 30-day minimum rentals. However, the neighborhood of Grayhawk, which has several different communities from condos to golf course estates, has some communities (including where I live) that do not have minimum stay requirements. The HOA tried to get residents to vote on instituting a 30-day minimum, but they couldn't get the votes to pass it. They could make an attempt in the future.

South Scottsdale is attractive to STR operators because most of the single-family home neighborhoods do not have HOAs. Most of the successful STRs are older homes that have been nicely remodeled--and have a pool. Three zip codes that are most popular because they are close to Old Town and other attractions people come to Scottsdale for are 85257, 85351 and 85251.

And there are Scottsdale condo complexes that allow short-term rentals. There would always be the potential for the HOA to change their rules, of course.

I will add there is one other zip code to take note of: 85254. This zip code has a Scottsdale address, but is technically in Phoenix. I lived in 85254 for many years. There are pockets without HOAs and it is very close to the Phoenix Open golf tournament, other golf courses and shopping and nightlife at Scottsdale Quarter and Kierland Commons.

Hope this helps!

Melanie

@James Barnes here are those links to rental and sale comps for 85016:

Rental comps:

https://www.flexmls.com/share/4HE44/Selected

Sales comps:

https://www.flexmls.com/share/4HE6o/Selected

Melanie

@James Barnes It's smart of you to consider all your options before deciding what to do. I agree with the gentlemen above that a lot depends on your goals. Do you want to build a real estate portfolio? Does the property cash flow as rental? Would it be a profitable Airbnb? Lots of factors.

But having been in this real estate market for 15 years, I can't see how you are not sitting on a gold mine. You are in one of the most desirable zip codes in Phoenix. You have a single-family, 3/2 with a pool. I just comped both rentals and sales in your zip code. I will put those links in a response below, but they might get nixed by the BP reviewer. If so, I can private message them to you just for reference. Since I don't know your house's features, you'll have to see which of these might be more comparable. There were no 3/2 combos when I searched for active listings, so I pulled the closest I could find.

Airbnbs can be awesome, but they must be closely managed. You can talk with STR management companies to find out their fees, which can be 30% of revenue.

To explore the cost of a long-term PM, reach out to Barbara Habbeshaw of AZ Residential Management. I have connected her to BP members who I've helped by SF homes to rent. They are pleased with the cost and convenience of her services.

We are in a very strong market that is not predicted to slow anytime soon. I was on a 90-minute market update call from one of the most respected AZ RE market analysts and our market will continue to appreciate through 2021. If it hits a headwind, it will still appreciate, just at a slower growth rate.

Here's a chart that Tina Tamboer of The Cromford Report shared with agents today. I hope you find it useful. If the numbers work and you don't need to sell, holding on to your home might be a great wealth-building move.

Melanie

@Shiloh Lundahl thank you for the invitation. I wouldn’t mind getting the Zoom link to try to attend virtually. I’ll see if that’s available on your registration.

Melanie 

@Joseph Greer if you sign up for the meeting you will be sent a link to the recording, according to AZREIA, who I just reached out to. They say they stop recording before the "Haves and Wants" section when members share their deals, but record the main section, which includes a detailed market update.

You can pay $20 to register for a single monthly meeting or they have a special membership price now that lets you sign up for a year's membership for $60 and then pay $10 per meeting. Go to their site for a full breakdown of membership options.

Hope to see you at a future meeting!

Melanie

@Joseph Greer to answer your questions on REIAs, the big one in Phoenix is AZREIA, which just happens to be holding its monthly meeting Monday night, 12/14, virtually. You can learn more here: https://azreia.org/

Members include newbies and seasoned investors, so there is always someone to learn from and network with. And they have training programs to help new investors get started.

Tell them I sent you.

Having been to several PHXREIA meetings before the pandemic, that is comprised mostly of high-level wholesalers. Steve Trang's Real Estate Disruptors is another good group--and Facebook page.

Hope this helps,

Melanie

@Bubba Earnest Aloha!

What is your budget? That will very likely narrow down potential markets for you and simplify your search.

Melanie

@Austin Eberle

I just tried to post current listings for both condos and single-family homes in your price ranges, because I thought they might help you in your planning.

My message got nixed by the BP police.

So let me just say how smart it is of you to start building your own portfolio after seeing how your brother has started to build his.

Of course the more rooms in your house hack, the more people contributing to your mortgage.

Hopefully you could get the return you are looking for with a three- bedroom single-family home with a low or no HOA.

Best of luck!

Melanie

Those of you have invested in Metro Phoenix--or are posting "where to invest" questions--might want to read this article from today's Arizona Republic.

At the end of this excerpt there is a link you should be able to access without being a subscriber:

Metro Phoenix has finished at the top — again — in a national study that ranks counties by their ability to attract and retain high-quality workers and other economic-development factors.

Maricopa County finished first in the study by labor-analytics firm Emsi, beating out runner-up Clark County, Nevada, home of Las Vegas, and dozens of counties from Texas and Florida. The study evaluated counties in terms of migration, overall job growth, skilled-job growth, educational attainment, regional competitiveness and annual job openings per capita.

Maricopa County placed second overall last year but has finished first in three of the five years the study was conducted. The latest version analyzed 601 counties across the U.S., including nine of 15 in Arizona.

"Perhaps what is most striking about Maricopa’s economy is the breadth and depth of industries," the report said. "It’s reasonable to assume Maricopa is benefiting from a feedback loop: existing talent attracts firms and investment, which in turn attracts more talent."

Positive recent developments for metro Phoenix cited in the report include Intel's expansion of its Fab 42 factory in Chandler. Maricopa County's growth as a leader in advanced manufacturing and semiconductors has fueled a double-digit increase in skilled jobs, the Emsi researchers said.

Read the article here:

https://www.azcentral.com/stor...

Melanie