All Forum Posts by: Ryan Swan

Don't risk all your money on a condo to Airbnb if the CCRs prohibit short term rentals. General rule of thumb is that 90% of associations prohibit them, while maybe 10% explicitly allow them. If your whole model depends on the doing Airbnb, then it's always safer to buy a SFH without an HOA.

The VA rules on termites can be a real pain in the butt. On a recent deal the appraiser called out some termite damage and "conditions conducive to termites". Seller agreed to repair all of it. Then the VA appraiser had to come back to certify the treatment/repairs were done. Apparently something was missed or there was a communication mix up and then the termite company had to come back and write a new report. Then the VA appraiser had to come back AGAIN. It was a real cluster$%^& and delayed closing by about a week. 

@Tatiana Conta The last time you could get 1%+ properties in phx was probably around 2011/2012. Since then it's been an upward price climb away from that metric. The 1% rule, while a good back of the napkin approach, completely ignores price appreciation which is the single biggest driver of returns in Metro Phoenix. Case in point, I helped some clients purchase a fourplex in Jan 2020 for $440k...just sold it for $550k less than 12 months later which is ~25% gain. 

@William T Stephens probably should contact an attorney to help you through this first tough tenant. There's extra legal hurdles to jump through right now due to state and federal moratoriums on evictions. 

@Andrew Der I can't imagine why a PM would ever pay the owner's HOA fee, which could be $150-$300+/month for a condo. If a PM is charging say $70/month for management, then they would be in the hole ($80) to ($230) per month. Maybe the PM was telling you they would pay the dues on your behalf and manage communication with the association, but then they would simply deduct the dues from your monthly rent revenue. 

@Andrew Der median valley home price is now ~$340k and rising steadily.

If it's not R3 it's almost impossible to get it zoned multi family in a predominantly single family neighborhood. That means you wouldn't be able to have separate metering or mailing addresses, so long term rental prospects become difficult. You could continue renting the whole property as STR units because you'd be paying all of the utilities any way.

@Reilly Carpenter Check the zoning to make sure it's R-3, because it sounds like you have multiple dwellings on one parcel. You'd "probably" be fine running the casitas on Airbnb even if the zoning is only single family residential. 

@Landon Moore thanks for the shoutout dude! @Sellen Wei feel free to reach out with any questions 

@Adrian Teng-Amnuay you can buy a "second home" with lower down payment and interest rate requirements. You can then use it yourself, while renting it on AirBnb/VRBO for the times you're not there. You could make it a long term rental, but technically that would violate the terms of the "second home" financing. If you want maximum flexibility, then classify it as an "investment property" and put 20%+ down. Then you can use or rent the property however you wish. I've helped out of state clients purchase a myriad of short/long term investment properties all over the Valley.