All Forum Posts by: Noah Corwick

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. 

You should be fine as long as you don't need to drive through or along the cemetery to get to the property or have any graves that are in eyesight. 

Quote from @Nathan Gesner:

Quote from @Joe Leming:

There are a lot of holes in your plan. 

1. Multi-year tenants are liars. They will sign a 5-year lease and then leave after two years, or maybe after three months. Even if they do stick around, they are more likely to become a pain in your backside, develop a sense of ownership, etc. It's better to stick to a one-year lease with renewals if they decide to stay. This also gives you the flexibility to increase rates.

2. Why are you afraid to make a profit? Property requires maintenance, taxes increase, insurance increases, things wear out, etc. You need money on hand to take care of the property, so don't short yourself. Rent it for market rate.

3. Home warranties are a money maker for the home warranty company. Do some research and you'll see they aren't worth the money.

4. I recommend you hire a professional property manager. Your friend may not know what he's doing and it could cause a lot more problems. Give it to a professional with a legal and financial interest to see you succeed.

I echo what Nathan said. 

You definitely will need a Property Manager. Even with a Home Warranty company, the likelihood of anyone answering or doing anything in the middle of the night is extremely low. A PM will be the middle person for all of this and make your life so much easier. 

I also would not lock yourself into a tenant for longer than 1 year. What if you get a horrible tenant? You'd be stuck with them for a long time and might have trouble collecting rent. You always have to think about your exit plan. 

Quote from @William Whitley:

Good evening, Deborah,

Like for most questions, the answer is it depends. One thing I would look at is the cost of debt. Compare the interest rate on the primary residence with the investment property. That isn’t necessarily the deciding factor, but it is something worth analyzing. All other things being equal, I would probably cash out refinance on the investment property; however, I wouldn’t want to take so much out that it leaves little margin between cash flow in and cash flow out. Ideally you would have positive cash flow even with a cash out refinance, and enough left over to continue to build up a cash reserve. The reason why I suggest using the investment property is hopefully you have a tenant paying that mortgage compared to you personally paying the mortgage on your primary residence. Additionally, you may be able to expense out the interest on the investment property, whereas you may not be able to do so on your primary residence. As always, I recommend having a conversation with your tax advisor to discuss the tax implications of one option versus the other.

I hope that helps. 

Nothing to add except that Williams summarized it perfectly. 

Obviously it's a numbers game so do the math on the interest rates for both scenarios. But because your tenant is paying the investment property's mortgage, that one might make sense (as long as the numbers work). 

Best of luck! 

Hi BP!

I have a client who is looking for a Buyer for his STR located in Uptown/Midtown PHX. It's a 5 bed / 3 bath, has a mother-in-law suite, a nicely sized pool & extended patio, and the home comes fully furnished.

A few incentives that we're offering include:

-If my client is used as the Loan Officer in the deal, he will do the loan at cost. This would save a buyer a few grand in closing costs + he has fantastic rates 

-Willing to do a leaseback for up to 6 months 

Shoot me a DM if you are interested!