All Forum Posts by: Pamela Sandberg

For a primary residence, I always recommend buying rather than renting. Renting is guaranteed to get you no ROI at all. More importantly, you have to consider what will happen with the Phoenix market in the coming years. Job growth is huge. The projections are that so many people will be moving to Phoenix in the coming years that we won't have enough housing supply for all of them. Even though the market is hot now, the data indicates that it won't drop off any time soon.

Phoenix is a popular spot for California investors! It's close enough to pop over without spending a fortune on plane tickets or killing two days flying across the country. Happy to answer any questions I can!

Phoenix has been a popular destination for CA investors, because it's a relatively short trip to get out here when you need to. Happy to discuss the market or answer any questions!

@Brandon Wulff: these house hacks and STRs have generally performed very well here in Phoenix - especially near popular locations like the stadium! It’s a great idea, and I’m happy to answer any questions I can about the specifics.

Welcome to BP and the end of analysis by paralysis! :)

You are absolutely asking the right questions - what is a good, long term strategy that will get me where I need to go? The connections you make with other investors, contractors, vendors, Realtors, and everyone else here are valuable to us all. I'm happy to answer any questions about the Phoenix market, or meet up to discuss a long-term strategy that aligns with your goals and needs. 

There have definitely been a LOT of investors buying rental properties here! But there is a lot of job and population growth projected over the next few years, too. These are people who will need places to live. Many will buy, but many will rent, and this will keep the demand high. Because of this, I don't think we are at a point of being OVER saturated with rentals. But definitely a good point and an important metric to keep an eye on!

Check out the Phoenix market. Cash flow is a little tight, but appreciation has been healthy and sustainable. Our job growth projection indicate this will continue over the next several years. Phoenix is a popular location for SoCal investors as it is quick drive away. This makes it easier to come out occasionally without breaking your cash flow on plane tickets across the country.  

An LLC is a great way to protect your personal assets from being used to satisfy rental debts. You may not have to choose between LLC and house hacking, either. If your lender will allow you to put your primary residence in an LLC (or if you can refinance to the LLC), you can then house hack by renting to roommates under the LLC. Check with your lender and CPA to confirm this will work in your particular situation. There are some issues with claiming the Section 121 exclusion (for tax-free profits from the sale of a personal residence), but this can be avoided if you have a single-member LLC that is disregarded as an entity for tax purposes.

It is generally advisable to put rental properties in an LLC. This protects your personal assets from being used to satisfy rental debts (ie, mortgage defaults, lawsuits from tenants, etc.) This would be especially helpful for you and your girlfriend to clarify your ownership rights in the properties.

I believe CA has an annual fee to maintain an LLC, but Arizona does not. You would want to put each property in an LLC in the state where it is located.

Be sure you really understand the strategies that work in your market before putting all your chips on the table. For example: appreciation and cash flow are much different factors here in Phoenix than they are in other parts of the country. It is important to know how a particular property will perform in a particular market before committing to reselling it in 3-6 months.