All Forum Posts by: Pamela Sandberg

I do! We've been doing some creative things in this crazy Phoenix market - there are lots of opportunities if you're not afraid to get a little adventurous :)

As discussed, the situation really depends on the addition. Little "add ons" (shed, porch, etc.) might just need a contractor - or if its already up to code, a city inspection to formally approve it. If the addition is actually a separate unit, though, you're going to run into issues with SF v. MF zoning. Keep in mind there are still requirements for setbacks, lot size, etc. All this needs to be considered when you're looking into whether the space can be permitted or not.  

I saw you were under contract, congrats! The rehab looks beautiful!

The assessor's website will tell you the legal owner of each unit and the address where their tax bills are sent. It's a bit of a pain to search unit by unit, but worth the trouble if you really love this complex. In the current Phoenix market people are getting approached by all kinds of investors. You can stand out by writing a personalized letter (not "Dear Owner") to each individual owner, and explaining how much you love their complex. 

Good luck!

Welcome! Happy to answer any questions I can about VA loans, the local market, etc.

Might be HIPAA issues, too. If you have information about their health conditions because of your job, this is protected. You can't share it with your realtor/lender/wholesaler buddy/etc. 

Something to consider: your strategies will vary depending on the market conditions. Phoenix is in a really unique position right now. Our sales tanked in April and May after COVID, but then June and July were record months. Now, there is less than half the inventory it takes to have a balanced market (one that favors neither buyer nor seller). So that means that there are very few properties on the market, they go under contract ridiculously fast, and the prices are high. None of this favors buyers. 

However: this seems to be a predictable uptick after the market effects of COVID in April and May. So we might see things slow down and even out a bit in the next couple months. As the market gets closer to balance, you will see more properties coming on the market. This will create better opportunities on your wholesale lists, on the MLS, for FSBOs, and across all other ways of getting deals. Don't limit yourself to one method of finding deals. Try a few to see what works, then focus your efforts on the methods with the best returns.

Phoenix is rough for cash flow, but we've been appreciating really nicely! If you're interested in holding, it's a great market to consider. 

If you give notice of non-renewal and the tenant leaves, no eviction is required. If the tenant stays past the notice, you would still have to get a formal eviction order in order to have them physically removed from the property. The executive order prohibits enforcement of such an order IF the tenant can prove that he or she has been impacted (medically or financially) by COVID. So it might be possible to get the tenant out by simply giving notice of non-renewal, but if they refuse to leave and can document COVID hardship, you're SOL. In either event, I do not see where you can be penalized simply for giving notice of non-renewal. The executive order even allows you to get the formal eviction order, it just cannot be ENFORCED (ie, tenant removed by law enforcement) until the moratorium is lifted. Of course, the safer route for landlords is simply to keep tenants in place and not risk litigation at a time when everything is so unclear.

Now, the practical realities are a different matter. Are the courts hearing eviction cases on their reduced dockets? Probably not many. What are sheriff's offices doing with all these confusing housing orders right now? No idea. Will tenants scream about "their rights" without proving the COVID hardship that is required under the AZ moratorium? Absolutely. You will have to overcome these (and other) barriers to actually get a new tenant into the property. 

AZ has some great spots for STR returns! We also have a lower entry point and lower property taxes than many of the other places you mentioned. Happy to answer any questions I can about the Phoenix market!

Knowledge, knowledge, knowledge! Ask detailed questions about the local market, the neighborhood where a particular property is located, deal analysis, future projections ... anything you can think of. If the Realtor doesn't have detailed answers, their advice isn't going to be very helpful.