All Forum Posts by: Mick Hofmann

@Elijah Bryant For comps, I use Airbnb to find homes in that area. You can search address and then find homes around it. Then I use Airdna, mashvisor, and Rabbu to get a good idea of what it could gross as a STR. You can find both historical numbers and projected numbers on these sites. Factor in your expenses and then you will arrive at your number. In seasonal markets, like here in Phoenix, it is better to have a yearly number rather than a monthly number because it will fluctuate so much.

@Ryan Swan @Melanie Johnston

@Mark Andrew Deidiker the best investment you can make is an investment in yourself. There are a million ways to make money. Invest in yourself by reading books, taking courses, attended seminars and never stop learning. Sorry to hear about your dad. Best of luck. 

@Eric Kelly It is easy enough to create an LLC. Just create a new one in AZ for the AZ property.

@Ryan Stumbo It sounds like you are on the right track. Phx is quickly becoming overpriced and hard to find deals as an investor. As others have stated, most realtors are small minded and are in it for a paycheck. You can still find deals around here but you have to be well connected. 

@Travis Heppe Sounds like a great opportunity 

Looks like a great opportunity! 

I attended a seminar back in August and they had a segment on water. The biggest concern brought up was what @Joshua Proper mentioned above about the CAP and AZ being in the junior position. 41% of greater Phx's water comes from the CAP. 30 % comes from groundwater, and 27% percent comes from the Salt-Verde rivers. The remaining 2% coming from effluent sources. There are safeguards in place, like the 100 year assured water supply for new subdivisions like what @Doug McVinua mentioned. Could there be more? Probably, when I moved here three years ago from the Midwest, I was shocked at how cheap water was. I am not too concerned about running out of water anytime soon. 

@Louise McEwen People who bought houses 15 years ago in the housing crisis when houses were peaking have seen the values come back. So as mentioned above, while it is scary to buy at a peak, if you hold onto it the values will come back. Most people are talking about a continued sellers market in 2021 along with homes appreciating, and continued low interest rates. So I would say go for it! 

It certainly is a crazy market right now, but since the housing crisis there has been a lot more regulation on the lending side as mentioned above. A lot of businesses have moved here which has created more jobs, and so more people. And now with Covid and work from home being the new norm, we are seeing a large inflow of people coming from all over because it is affordable and the weather is nice. Interest rates have also added to the large buyer demand. Although appreciation has been through the roof, people are more concerned about their monthly payment than the price tag.  

Having said that, most of what I have read and heard is that 2021 will be another strong year for sellers with such large buyer demand, low inventory, and interest rates will continue to be at historic lows.  However, all the stimulus packages will come with a cost and I think we will see inflation moving on past 2021, but what is the best hedge against inflation? Assets that have been locked into a low interest rates. So if you are wanting to buy, get busy, because the best time to buy was yesterday.