All Forum Posts by: Pamela Sandberg

There is a LOT of competition for small multis (2-4 doors) here in the Phoenix area. Many of them never even hit the MLS. A lot of investors are simply looking up owners and sending mailers/letters/etc. It's a tough niche to break into in PHX, but there are a lot of other strategies that work here, too!

@Dan Schwartz is right on with the law - if there are no written leases in place, they are month-to-month tenants. I would double-check that there isn't actually a more current written lease agreement in place. (This seller doesn't sound like the most reliable record keeper.) As long as there isn't, you can give notice to quit as they are MTM tenants. 

I've got a (non-salesperson) contact in the solar industry. Happy to put you in touch if you'd like to get some info from someone who isn't selling you something! :)

I work with a great lender who is well-versed on VA loans. Let me know if you'd like me to DM his contact info!

@Diane G.: 2005 was absolute insanity here in the Phoenix market. Nothing like that has happened before nor since! But the market is a lot more stable now, with a lot of sustainable growth. Happy to answer any questions or discuss the current strategies that are working here!

There's still plenty of competition to buy small MF (2-4 doors) throughout the Phoenix area. Are you wondering about the market for buying them or for renting them out? 

@Corey G.: you might have to funnel them through your personal accounts when going from one account to another. You do have to maintain separate accounting, but speak to an accountant about the best way to accomplish this. It will be complicated. You’re asking the right question - is the juice (legal protection) worth the squeeze (the hassle of separate accounting)?

The attorney had it right - you want each property in a separate LLC, because this protects the assets of each property from the liabilities for the other. (For example: if a tenant sues on one property, the equity in another property couldn't be used to satisfy a judgment.) Yes, 4 LLCs is a hassle, and yes, you do need to maintain separate bank accounts for each one, but this is still an important legal protection. Umbrella policies and mortgages only get you so far.

And yes, the cost to maintain separate entities is almost non-existent. Unlike other states, AZ does NOT charge an annual fee for each entity, and your banking fees will also be minimal if you go with a good, reliable bank. The biggest problem is simply the hassle of documenting everything and separating the accounts. I can't speak to other states, but I will say that here in AZ, having a separate LLC for each property is good legal advice.

Happy to answer any questions you have about the Phoenix market!

I'm on a variety of wholesale lists. I'm also watching for deals for several other investors, so I can easily send you what I find if I know your parameters. Let me know what you're looking for!