All Forum Posts by: Pamela Sandberg

I don't have specific forms to send you, but I did want to make sure you had two important provisions. First, you'll want "joint and several liability" (meaning any of the roommates can be held liable for default of one), and also guarantors. Make sure to have a parent (or other adult with consistent income) co-sign. Ideally you'd have one co-signer for each of the renters. 

@Matt Dickens and @Lance Branford: Reiterating what's been said earlier in the thread - the numbers on MF just don't work out for most deals in the Phoenix area. There's not much inventory, which drives prices up, and the rental numbers are not great due to the location most of these properties are in. I strongly recommend considering house hacking, casita hacking, and the other creative options discussed above. In some cases, the numbers might even support picking up a cheap SF and building a casita/suite/ADU on the property.

It's also important to consider the legal issues associated with house hacking. Many areas of Phoenix are zoned ONLY single family, which means you can't (officially) put another livable unit on the property. And even in the areas where you can, HOAs generally restrict STR. These are not deal breakers, but they are issues that you have to address when house hacking.

Happy to answer any questions I can!

Have you considered Phoenix? There is a wider range of opportunities than in Tucson. Happy to answer any questions I can!

@Joshua Netzer: there’s a great meetup in Mesa hosted by @Shiloh Lundahl. 

How to evaluate the market will depend on what that market has to offer. For example: Phoenix MF inventory is almost entirely large apartment complexes. You don't find many duplex/tri/quads, and the ones that do exist are in rough areas with unreliable tenants. However, the SF inventory in Phoenix can offer even more opportunities than apartments. Our suburbs have some of the fastest-rising rents in the country, and you can count on raising rents every year to improve your cash flow significantly. 

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

Downtown Phoenix has some fantastic historical neighborhoods. Investors are doing big rehabs for big profits, but they are also house hacking with casitas. It's a very popular model here and it would be very close to your work downtown. Would love to discuss it in detail! 

Price per sf just isn't a realistic metric. The same sf in an apartment may be worth more to someone who wants the amenities of a complex, but worth less to someone who wants a yard and other features of a detached SF home. As @Allyssa McCleery said, look at the listings in your immediate area. Compare the apartments v. detached homes. See how long listings are sitting on the market. I can also help you pull rental numbers from MLS if you'd like. (Usually the MLS isn't the first place people go to list rentals, but there is some rental data there.)

Hope this helps!

@Jake Webb Did you file your s corp docs in California?

@Brian Gerlach: if you get into the right neighborhood at the right price, you don’t necessary need to put ALL cash down to cash flow. Of course all cash and refi is an option, but not the only one.

@Arturo Andres Lara: Phoenix can be expensive, but there are also some great opportunities if you know where to look for them! Downtown has several great historical districts where people are investing in big Reno’s with big returns. Rents are rising quickly across town, and there are other options too. Would love to discuss specifics!