All Forum Posts by: Pamela Sandberg

@Laurie Hatfield: First, take a deep breath! Just because one neighbor is "THAT neighbor" doesn't mean the HOA will amend their bylaws or come down hard on STRs. It's been an ongoing issue here in AZ, and it will continue to be. There will be battles. That doesn't mean you'll never be able to STR your property!

At the HOA meeting, I would be prepared to counter "that one neighbor's" allegations with evidence. It appears she is the only one who complained. There doesn't appear to have been any police intervention. (This is an important fact that proves her 10:03 call to police was absolutely uncalled for.) She has little - if any - ACTUAL evidence that this is a party house. She will come into the HOA meeting foaming at the mouth. This will only prove just how unreasonable she is. Let her rant and rave. You will then calmly present evidence that there is not, in fact, a problem.

I can't promise what the HOA board will do. But don't freak out or let one neighbor get you down!

I, too, am an attorney (not real estate). I left the FT law practice to go into real estate full time and I love it! The fact is that there are lots of ways to make money in real estate: flipping, short term rentals, long term rentals, development, assignments ... the list goes on. It's important to look into all of these to see which will actually make money and meet your other investment goals.

Also: real estate is very, very local. The strategies that work in your market won't necessary work in other parts of the country. Be sure that you are choosing strategies that work in your particular area. Like an any investment, it's good to diversify your portfolio. Consider using multiple strategies to mitigate the risk of loss. 

I don't know why self-showings would generate any more interest in your property. Given the demand for rentals here in the Phoenix area, I'm not sure why you're having such a hard time renting. I would find out more about your PM's strategy for listing your place and why that strategy hasn't worked. 

Re: highest and best use ... small MF (2-5 doors) are hard to come by in Phoenix right now. They tend to command a premium - especially if they are in a decent area and have decent finishes. Of course you'd need to run the numbers to see what a SFR goes for on that particular block, but the small MF numbers might surprise you!

B to C+ neighborhoods will cost you a little more, but definitely command more in rent. There is high rental demand here for properties in decent areas! Here's the other thing you need to be prepared for in the Phoenix market: we aren't seeing a huge amount of cash flow right now. You're doing pretty well if you can flow $200-$300 per month. BUT ... we are seeing very robust appreciation. So the principal of your investment grows nicely even if you aren't seeing huge monthly dividends. That's still a good investment, you just have to have realistic expectations about what you're going to see in cash flow. 

Consider South Tempe or Ahwatukee. I've also seen the occasional great one-off deal in Chandler (which is very hot and has high prices right now). There are pockets in West Mesa worth considering, but you have to be very careful. The neighborhoods change quickly. 

Happy to answer and questions I can!

The Phoenix real estate market is CRAZY right now! I will warn you that cash flow is a little tight. That said - appreciation is going bonkers, and people are creating a LOT of equity that way. Happy to discuss any specifics!

Get a great local team together! Local Realtors will know the area inside and out. Having a local handyman means you have someone on call for repairs, etc. Property management will protect your financial interests. With a team in place, the idea of out of state investing doesn't have to be overwhelming!

Zillow (and Offerpad, and Opendoor, and the other iBuyers) have taken a big bite out the apple here in the Phoenix market. To my surprise, individual investors are still going about their business relatively unaffected. There seems to be plenty of room in the sandbox for everyone to play. Maybe that's just because Phoenix, specifically, is such a massive market. (I can't speak to the other geo areas.) Just what I've noticed here.  

Sober living is WAY more regulated, both by the city and the state. You might be able to command a premium to offset that, but the question is - will it be enough? Even if the numbers work out, will the added work and hassle make it worth your time? 

Student housing is pretty cut and dry. Get each student on a separate lease with a separate guarantor and healthy security deposit, and you'll probably have a nice, steady flow of income indefinitely. 

Duplexes and ADUS, on the other hand, are a hot commodity in Phoenix right now. There just aren't enough of them to satisfy the demand. By converting to either a duplex or a in-law suite, you could either sell right away at a nice premium OR rent out both units. (SFR and ADUs have both been doing very well in the rental market.)

Hope this helps! Happy to answer any specific questions. 

I don't know about ratings, but I do have the name of a great brokerage that does a lot of PM work. Let me know if you'd like a referral!