All Forum Posts by: Ryan Swan

Definitely don't add panels on a rental...there's no benefit to either party and it just complicates the lease and marketing. 

Adding them to a long term primary residence could make sense. I would try to buy them outright and then calculate my CoC return based on the monthly average savings vs my cash invested. Keep in mind there is a small YoY diminishing return because the panels generate less electricity each year that they age, although this can be greatly offset by rising utility costs (which our local utility seems to do every year).

@Connor Ong welcome to BP!

Encanto is a very high demand historic neighborhood and definitely not C class. In fact, Palmcraft and West Encanto are two of the most updated and best preserved pockets of historic homes (they look like old Hollywood in LA). 

I think @Bob Okenwa might have a typo because the best areas are East of 19th ave

I've been using Buildium forever, so I haven't formally tried Zillow Rental Manager. I do post all listings on Zillow and get the most listing hits from them. Cozy is probably the most cost effective solution if you're looking to "Step up" but don't want to pay Buildium prices. 

1) Good agents know to point out whether a home has N/S or E/W exposure. Not all buyers care, but I always point it out just so they understand the implications. I can be indifferent to E/W exposure depending on the orientation of the windows, and how many shade trees there are on either side. 

2) Power lines can be a deal breaker. I've had at least half a dozen clients tell me to skip a house on a tour because it had large power lines near the back yard. 

3) Proximity to apartments, condos, or commercial buildings that back up to the back yard can also be a deal breaker for many buyers. I'd say deal breaker for 7/10 buyers and maybe not for the other 3. 

Comparing Anthem to Grayhawk/Scottsdale is pretty apples to oranges. 

I'm biased to Scottsdale in terms of future price appreciation, job stability, and the class of tenants you would get. 

The key thing with FHA is that any 3 or 4 unit property has to be self sufficient (duplexes do not) 

The basic formula is: (Total monthly gross rent x 75%) must be > the total monthly housing payment (P+I+T+I + MIP + HOA).

You almost certainly need a fourplex to be self sufficient, as the rent from just two units will not be greater than your housing payment when only putting 3.5% down. I don't believe the FHA appraiser will consider "by the room" rent in their calculations. 

You also need to factor in the upfront mortgage insurance premium (UFMIP), which in this case would be 85 basis points (.85%) of the loan amount. So that would be an additional $2,534 up front for closing costs (this is not interest or down payment...it's money down the drain).

Breakdown of my investor clients by their professions (this is roughly from memory)

1) Doctors / medical profession

2) Sales (technology and payment processing two big ones)

3) Software engineers

4) General engineers (have quite a few clients in this space....mechanical, electrical, even one optical specialist)

5) Everything else - I love talking to people and learning the interesting ways they make money. 

The block walls would almost certainly be load bearing, so you'd need an engineer and contractor to make a plan to carry the load with beams or posts. Plus the time/cost of a permit. 

The open concept could be the difference between it selling at the price you need to make a profit, or not selling at all. 

8% is about average, although I've seen lower. At 8% you can expect to pay 1/2 first month's collected rent for a vacant turnover. Some offer a "full service" agreement for 10% that doesn't have re-leasing fees. 

There's also monthly fixed cost plans around $65/month/unit that are collected regardless of if it's occupied or vacant. 

1/1s are always in really high demand in Tempe (possibly the most requested unit type).

If I'm looking for a 3/2 with my friends, wouldn't we rather just get a free standing house in the Maple Ash Farmer Wilson district then rent a smaller 3/2 apartment with no covered parking or yard space?

Are you sure your math is right? Assume 1/1s rent for minimum $800/month, and a 3/2 rents for $1500-$1900. How are you getting an extra $9k/year out of a 3/2 vs renting 2x 1/1s?