All Forum Posts by: Noah Corwick

One thing to consider is how you intend to Property Manage the home. Will you be doing it yourself or will you be hiring a company to do this? You'll need to factor this when you're running your numbers. 

For example, if you're hiring a Property Manager, does the LTR rent enough give you enough margin to be happy with the cash flow (8-10% goes to the PM each month)? If not, you should probably consider MTR.

Like Greg had mentioned, it is an imperfect science especially in PHX where MFH's are patchy.  

In addition to this, I would also start with what knowing what the units are being rented for currently to establish a baseline. Then based on the condition of the property and looking at the closet comps that you can find, you can extrapolate some of the projections out. 

Also in my experience, there are usually some MFH's near the subject that you're able to comp the rent out for to further establish the baseline. I'll shoot you a DM .  

 

Hi @Jeffrey McGrew! I have a property in PHX that might be a strong fit. I just shot you a DM. 

Hi @Deserey Templeton. I'd really recommend Brandon Turner's book called, "The Book on Investing in Real Estate with No (and Low) Money Down."

It will hit this topic right on the head for you. 

Best of luck! 

Quote from @Chase Wiles:

@Noah Corwick nice to meet you! I've heard and read a bit about house hacking.

I'd be happy to discuss further! Looking forward to connecting.

 Just shot you a DM! 

Quote from @Clayton Silva:

I'd recommend connecting with 

Noah Corwick | BiggerPockets

He's pretty well connected in the PHX market and might be able to assist!

Thanks Clayton. 

Hi Chase!

My team and I work with a ton of first time investors around PHX to demystify running the numbers and what is fully required to accomplish adding a door and becoming an investor. 

For example, house hacking is typically a great place to start if you haven't looked into it already.  

I'd love to connect with you more and dive in. 

The dreaded condo questionnaire is becoming such a sticking point here in the valley. I've worked with many condo/townhouse buyers and it's becoming a nuisance. So I feel your friend's pain. 

@Clayton Silva might be able to help or advise on what his options are. 

Hi Kyle, 

Is there a particular reason you are set on the next property being an Airbnb? The STR market in PHX has dried up a ton and for $325k, you might have to settle for a Townhouse/Condo in a so so area.

Another concern is if you do purchase a Townhouse/Condo, most have 30 day minimums. So this would force you to shift to a MTR strategy. 

I think the play here for you could be to purchase the home in a future appreciation area. So it might be a C area now, but in +5 year it's projected to become a C+/B. Then possible LTR one of the rooms and MTR the other (assuming you don't get a SFH). You might not get the cashflow you want right away, but if you are in it for the long haul, it would pay off.

Also if you do end up STR'ing, are you prepared to be in the hospitality business? It's a whole other ballgame to deal with.

Quote from @David Gillette:

Quote from @Noah Corwick:

Hi David, 

This could be for a plethora of reasons, as every scenario in real estate is completely different. 

Maybe they don't have funding anymore or can't afford their holding costs. Average Days on Market has gone down a tad from last month, but is still at around 80 days. 

Maybe their contractor can't perform the work and is too busy with jobs.

Did you bake yourself an inspection period? I'd recommend touring the property with your Contractor.

Every scenario is different so more context about the property is needed. I also might ask them what changed and see if you can sense a BS sort of answer and feel them out a bit. 

Noah, 

I really appreciate your feedback. You're absolutely correct, I figured it was a bit of a loaded question. I could only imagine how many different things it could be. My wife is also a realtor. I'm going to have her call the agent with a laundry list of questions. Maybe she'll be able to pull out some more useful information. I was thinking of doing a 14 day close and get my GC in there with me tomorrow. I haven't seen the property in person yet. When I asked why they were selling, she just said the investors decided to move on from the project. I should have dug deeper. Great learning experience though. Thanks again man! I'll let you all know if I go under contract. 

My pleasure! 

That's awesome that your wife is a Realtor (better spread for you). I would definitely have her call the Listing Agent with your laundry list of questions and just try to sniff it out.

Let me know how it goes. I'm invested now. 

Hi David, 

This could be for a plethora of reasons, as every scenario in real estate is completely different. 

Maybe they don't have funding anymore or can't afford their holding costs. Average Days on Market has gone down a tad from last month, but is still at around 80 days. 

Maybe their contractor can't perform the work and is too busy with jobs.

Did you bake yourself an inspection period? I'd recommend touring the property with your Contractor.

Every scenario is different so more context about the property is needed. I also might ask them what changed and see if you can sense a BS sort of answer and feel them out a bit.