All Forum Posts by: Pamela Sandberg

There is a LOT of demand for small MF (2-4 doors) here in the greater Phoenix area, but it is still possible to find them. As Alan mentioned, ADUs are another great house hack option that many use here. Happy to answer any questions I can about the Phoenix area! 

If you end up staying here in Phoenix, I'm happy to answer any questions about the local market!

If you don't have cash available for improvements, you might not want to go the fixer-upper route right now. But house hacking is a great idea! Consider something that is in at least decent shape, then get enough roommates to cover your mortgage. There are great down payment assistance programs that can help you get into a house for very little cash down. And with interest rates at rock bottom, it's a pretty good time to take on a conventional mortgage (so long as your employment is secure in the midst of this COVID crisis). Happy to answer any questions I can about these or other options!

$110k-160k is reasonable in the outskirts, but it will be difficult (if not impossible) to find something at that price in the city/suburbs, other than mobile homes. But at that price in the outskirts (Coolidge, Casa Grande, Florence, AZ City) you could reasonably expect to cash flow a couple hundred a month. Be prepared for very slow appreciation in these outskirts. 

So far, the Phoenix real estate market has only had a little slowing due to COVID-19. We still have big growth projections in the coming years due to job growth. IMHO, there probably won't be any major drops in home values. I strongly suspect the market will stabilize and continue to grow once the crisis has passed in the coming months. Of course, real estate is hyper local, so it's important to see exactly what is happening in the particular area you are interested in. The outskirts tend to follow Phoenix trends on a much slower and less exaggerated basis. 

Happy to answer any questions you have about Phoenix and surrounding areas!

Phoenix has been a very popular destination with SoCal investors - manageable entry point, great growth projections, reasonable property taxes, etc. Most importability, it's close enough that you can pop over when needed without spending a fortune on plane tickets or spending 2 days flying back and forth across the country. 

Happy to answer any questions I can about the Phoenix market!

Phoenix has been a great option for many SoCal investors - close enough to drive over when you need to, and the entry point is still manageable. I work with many OOS clients, happy to answer any questions about our local market!

My advice to everyone in this scenario has been DON'T PANIC! All indications are that the market will correct itself fairly quickly after the immediate crisis has passed. Also, there are still people who need to rent, even in the midst of this. Many landlords here are panicking and selling all of their rental properties. These are people who will need places to rent - even in the midst of a statewide "stay home" order. 

These are bizarre times, and I certainly understand the concern over closing in the midst of the crisis. But be sure you are taking a step back to evaluate the whole picture, and aren't making a decision based on panic. Happy to answer any questions I can!

I'll make a plug for Phoenix here: the market has been experiencing healthy, sustainable appreciation for years now. This is expected to continue with massive job growth over the next few years. Even in the midst of this current outbreak, we are still seeing a busy market with lots of sales and houses that are holding their value. Lots of great opportunities here! 

I work with a lot of out-of-state investors. Happy to discuss the market, challenges managing from afar, etc.!

Yes, a CA resident can establish an AZ LLC. It is advisable to do that for an AZ property - that way, if you are sued for an issue occurring in AZ, you know that AZ will recognize your LLC protection. Even better: AZ has no annual fees for an LLC. (I think CA charges something like $800 per year?) I strongly recommend you establish an LLC here in AZ to protect an AZ property.

If you don't at least register the AZ LLC as a foreign entity in Ohio, the Ohio courts may not offer you the protection of an LLC. This means that an Ohio tenant could go after your personal assets if they got a judgment against you.

IMHO, it's worth it to either start an Ohio LLC or register the AZ LLC as a foreign entity in Ohio (see a local OH lawyer if you have questions about foreign registration).