All Forum Posts by: Noah Corwick

Hi Eskat!

Two very different markets in Detroit and PHX. 

I'm curious, what is drawing you to PHX overall?

Hey Trask. Welcome to BP!

You are already ahead of a lot of beginning investors by knowing the exact strategy that you want to start with. 

I personally believe that House hacking is an ideal beginning way to start your real estate journey, so great call. It kills so many birds with one stone. 

Cheers to a successful 2024!

Hi Cat. Welcome to BiggerPockets!

Those are awesome goals.  

BP is an amazing place for connecting with other like minded RE enthusiasts.   

Hey Blanca, great to meet you. 

Inventory on the duplex/triplex front is a bit low in the greater PHX area, but there are creative options (homes with casitas, homes zoned for multi family, etc.) that are out there. 

House hacking is always a safe bet, which should give you plenty of possibilities and allows you to put a much lower down payment. 

Hope to connect with you! 

Hey Robert!

Great to meet you. Way to get back in the BiggerPockets saddle.

I'd love to connect with you. I'll shoot you a DM. 

Quote from @Bonnie Low:

I want to second what @Noah Corwick said about knowing what your strategy is going to be. It's absolutely crucial for doing your underwriting. Ideally, you want a property that lends itself to more than one strategy because that gives you options should anything change. I don't know about Maricopa county or your city, but we've seen a lot of jurisdictions severely restricting STRs or eliminating them all together so if you think you're going to pursue STR and you're not in a key vacation market that relies heavily on vacation rentals, then you want to make sure the numbers work for other strategies. I always run my numbers as a long term rental just so I know that option is there as a fall back. Also, be very careful buying a condo as they are almost always in an HOA or governed by strict CC&Rs. This means the ruling body will set the rules about what you can and can't do with your property and that can change at any time. A lot of people get burned when their condo association decides to restrict rental options. SFRs can be in HOAs, as well. Generally speaking, I recommend you avoid HOAs all together if you can avoid them, though in some parts of the country that's hard to do.

Running your numbers as a long term rental so you know that option is there as a fall back is extremely well said and is something I do for myself and clients every single time. This is a great practice! 

Quote from @Adam Goff:

Quote from @Noah Corwick:

Hey Adam, 

If you are wanting to dive into purchasing a SFH under $250k, you would likely need to have some funds set aside for rehabbing the property. You will have better luck finding a condo for that price point.

If I am understanding your post correctly, are you looking more for a long term appreciation play? 

Yes, buy and hold long term while continuously adding to the portfolio over time.

Got it, that makes sense.

I would say hone in on what rental strategy you want (STR/MTR/LTR). I am a big believer in buying a property that is versatile. For example, you purchase a property near a major hospital. You initially can use it as a LTR, but if the MTR market is hot, you can always put it on furnished finder and rent it to nurses. This allows you to not put all your eggs in one basket and pivot based on the market. You will also need to understand the property's HOA restrictions as well to pull this off successfully.

Also like Mason mentioned above, decide if you want to manage it or use a property manager. Both have their obvious pros and cons, but knowing this will help you run numbers. I also agree with Mason that it likely is a good idea to manage the first one yourself just to get the learning experience. 

Have you targeted any specific areas in PHX? 

Hey Adam, 

If you are wanting to dive into purchasing a SFH under $250k, you would likely need to have some funds set aside for rehabbing the property. You will have better luck finding a condo for that price point.

If I am understanding your post correctly, are you looking more for a long term appreciation play? 

Hi Chad, 

How do you plan on purchasing this home? As an investment property? A second home? 

If it's a second home scenario, be sure to account for needing to live there legally and accounting wise for a short period of time each year. 

The only "con" is accounting for when you live there and that being reflected in your ROI each year, since it would affect profitability. So just make sure you run your numbers.

Hi Teena, 

I agree with Walter, and believe targeting North/Central PHX and the West valley is your safest bet. Plus the East valley is very heavy with HOA communities. I'm sure you can find decent pockets in Mesa or Tempe, but it won't be as easy as in the West valley.

As far as areas go, the safest answer is anywhere near a Mayo Clinic. So this would be North PHX, Central PHX, North Scottsdale, North Glendale and East Chandler. As far as the most economical area of these, North Glendale would likely be your winner.