All Forum Posts by: Robert Leitner

Thanks @Bob Okenwa, appreciate the info

Thanks @Bob Okenwa. I've been looking in south phoenix and near east valley. I've focussed on 3br homes / condo's under $450k, which crept up from $300k in last year. Long haul would be at least a 3-5 years.  

I'm struggling with what you get for $450k in these areas now. Are the other areas in the valley the same? If supply comes back by end of 2022 and rates climb with these prices hold? 

I spent the last year trying to buy more single family properties in Phoenix. I put in a lot offers, won 4, and ended up having to walk away from for one reason. The prices have been skyrocketing with no end in site, supply problems, growing economy, etc, and I'm not seeing an end or even cooling off. Some say end of 2022. 

I would really like to buy more property there but I'm starting to question whether this is a bubble. I understand the factors driving it are different that the last Phoenix bubble, but are these prices sustainable over the long haul? 

I'd like to hear others thoughts...

@Bryan Balducki maybe it's me but I can't seem to tell from the calendar if it's blocked or reserved. I also don't see any historical data to determine rates or occupancy, is it there and I'm not finding it? I also noticed that is it's occupied, or not available even though I chose "I'm flexible" for dates, I don't see it or know that it's there. I only have a standard account if that matters? 

Are there better tools / resources out there to use? Should I expect some of this data from a realtor? 
 

I'm a newer investor with 3 out of state long term rental properties that I've acquired over the last year and half. Those properties are in Phoenix and I've relied on my agent and typical tools like Zillow to help me determine expected rents to help calculate cash flow. The market there has been crazy and it's become tough to find a LTR with positive cash flow. I'm starting to look into short term rentals as the next investment as it seems that the cash flow opportunity is greater. My agent is also an investor, both short and long term, and I'm wondering what kind of information I should expect related to short term rentals, like rate and occupancy? 

I'd prefer to have the tools myself to find all the information to determine viability, but I'm finding that data to be incomplete and expensive (airdna), what are some of the tools you use to help determine if a STR is a good investment?

Thanks,

Robert

@Patrick Britton, thanks for the response. My assumption, clearly wrong, was that the low supply of houses means low amount of selling, leading to appraisers sitting around. Either way, this was the fourth house I was buying in the last year, using the same broker, agent, and in 2 of the 3 other cases the same appraisal company. The prices was the same, the market wasn't that much different, so I expected the same level of appraisal - or to be told / given the option up front. Maybe, my broker knew and failed to mention for whatever reason. He's served me well so I'll give him the benefit of the doubt and take it as a lesson learned. 

@Caroline Gerardo, thank you for the reply. The lender didn't send me a link, in this case the broker ordered the appraisal and paid for it, then planned to recoup the cost at closing. I don't believe it was rushed, if it was then I wasn't told or asked, only knew that the cost was $585 because of closing estimates. I didn't see pictures, but asked my broker and am waiting to hear back. He did mention that if I had intended on moving forward he would have asked for an appraisal reconsideration. I actually didn't bid higher than everyone, but did have the strongest offer, which did include a clause that I would only pay $10k over appraised value. But that's besides the point, and you're right it is a hot market, but it has been for a while and there are comps to support something considerably higher that the $312k that this unit was appraised. I expected that it might not make $370k, which is what I offered and only $5k higher than asking, but there was plenty to easily justify $350k not taking into account that it was fully remodeled. At least one lesson learned in this is to not let the broker pay, and if possible, request that it's not table top. 

@Alan Lacey, thanks for the response. I'm not getting an appraisal with an operating income statement. I've also had three prior appraisals in last year, 2 of which were from the same company and were the same price, but they were full appraisals.

When questioning it, my broker mentioned that investment properties are usually more. Seems the work is the same regardless of the reason someone is buying the property, is this legit? 

Thanks @Joe Splitrock, good suggestions