All Forum Posts by: Melanie Johnston

@Evan Anderson Be sure your agent has you set up on a Coming Soon MLS search for your target area and property features. In the Arizona Regional Multiple Listing Service (ARMLS), agents can list homes as Coming Soon and these homes usually can be shown while in this status and offers can be written. The advantage is that Coming Soon listings do not appear on Zillow or any of the other RE websites. So you can get a jump on listings before they hit the open market.

Also, my buyer clients have been successful by making "clean" offers. Don't ask for any seller concessions, including a home warranty. You can always buy your own. And before you craft your offer, have your agent reach out to the listing agent to find out what is important to the sellers so you can be sure you address that in your terms.

Make your offer as early--and as frictionless--as possible.

Good luck!

Melanie

Congratulations @Joey Shanahan on prepping to launch your investment career! Wanted to share some thoughts on Metro Phoenix and Arizona, as you consider investment markets.

You've probably heard that we are one of those hot markets with appreciation that keeps rising. Last week one of our top real estate market analysts, Tina Tamboer, predicted appreciation would continue at it's current pace (6%-9% depending on the submarket and asset class) through Q3 of 2021.

Then, barring ANOTHER Black Swan event, Tamboer expects appreciation growth to slow slightly in Q4, but to continue at or above the rate of inflation. Our economic diversity, attraction of new residents (Hello, Californians) and favored-status with expanding companies are all contributing to a strong economy and an even stronger housing market.

This is no fun for real estate investors trying to uncover bargains, but investors are buying properties here every day to build their buy and hold portfolios. The last 3 BiggerPockets investors I helped (2 from California) chose to go the SFR route. MF is very competitive here because our supply is limited and more individuals have awoken to the idea of MF investing, thanks to "The BiggerPockets Effect."

According to The Cromford Report, run by Tamboer, here are the buyer breakdowns for homes sold through the Arizona Regional Multiple Listing Service:

During October the intended use for single-family and condo/townhouse properties in Maricopa and Pinal counties was as follows:

1. Owner-occupied primary residence - 77.3%
2. Investment - 12.2%
3. Owner-occupied secondary residence - 8.6%
4. iBuyer for re-sale - 1.6%
5. Unknown - 0.3%

The entry-level price point for SFR in neighborhoods with well-rated schools is about $350,000. Can you buy a little lower and add value? Probably, but there will be multiple offers on those deals from owner-occupied buyers and local investors looking to BRRRR.

If you want to invest in Arizona, the trick is to be one of the first ones in the door--or to buy it before it hits the active market--and have your financing ready to go. Our rental market remains strong and BP members are renting their SFRs within a few days of them hitting the market.

Best of luck wherever you go! If you have any questions about our market, feel free to reach out.

Melanie

@Tanner Ramsay Good job! Wishing you and your partner the best of luck!

Melanie

@Brandon Seyer You are very welcome! Maybe I'll see you at an event in the future.

Melanie

@Brandon Seyer looks like in December AZREIA is starting up with in-person events again.

@Brandon Seyer be sure to check in with AZREIA. This is the largest group of investors in Arizona. They are holding their monthly meetings virtually now, and also their sub-group meetings for fix-and-flip and buy-and-hold investors.

Lots of great ways to learn from people who have been in your position. Also great to connect with investors at all levels. Sometimes learning alongside people who are also starting out builds a strong network that will serve you for years to come!

Melanie

Hi @Molly Bustamante. Congratulations on purchasing your first home!

I will DM you to continue our conversation.

Melanie

@Pete Winslow Congratulations on your second acquisition! If your are wanting to know what people are buying or renting in Old Town, depending on your exit strategy, a great place to start is the sold comps. Looking at the photos to check on the finishes and features that are getting top dollar (again for either strategy) will provide you a Look Book that could inspire you.

As a money-saving idea, visit Stardust Building Materials, which is like a Goodwill version of Home Depot. Contractors and homeowners often donate their oversupplies, or things they've had removed for their own remodels. Sometimes these are like-new items. Sometimes they are truly "vintage", so you never know what you'll find.

Can't wait to see your before and after photos on BiggerPockets!

Melanie

@J Creed It's great that you've made several visits to Phoenix to check out neighborhoods that appeal to you and that you feel have potential. The neighborhoods you mention are very cool and do attract people who appreciate a historic vibe. Also worth considering are neighborhoods in 85016 and 85018. I ran an MLS search of the areas you are considering, plus the zip codes I've mentioned above. Here is the current inventory: https://www.flexmls.com/share/...

Right now I am reaching out to MF owners to find a very specific property type for a BiggerPockets member, also from the Bay Area. If you DM me what you are looking for, when I reach an off-market owner who fits your property profile, I can share that with you.

Melanie

@Wilson Pun I look forward to talking with you!

Melanie