All Forum Posts by: Susan Thelen

The Phoenix Metropolitan area has a diverse economy with key industries such as healthcare, education, finance, manufacturing, technology, tourism and professional services. It is home to several Fortune 500 companies and has seen steady job growth over the years. So overall the Phoenix Metropolitan area has a strong LTR market. Some areas to consider are NW Phoenix where Taiwan Semiconductor is being built (this area is expected to grow exponentially over the next 10 years), Scottsdale, Chandler, Gilbert & Tempe. ASU is in Tempe and there is always lots of demand in that area for rentals.
 

Hi Danya, I do not believe there is an app at this time. That would definitely be helpful if there was.

Hey there! Congratulations on taking the first step towards pursuing your flipping goals. It's great that you've started making calls and are ready to devote your time to this venture.

Regarding your choice between Vegas, Dallas, and Phoenix, it's important to consider various factors before making a decision. While proximity and transportation costs are certainly valid concerns, it's crucial to also assess the overall market conditions and potential profitability in each location.

You mentioned that the market in Vegas doesn't seem to be doing well at the moment. It's wise to take this into account, as a sluggish market could impact your ability to find suitable properties and sell them at a desirable price. However, real estate markets can be cyclical, and what might be true today may not necessarily hold true in the future. It could be worth researching further to see if there are any indicators of improvement or potential opportunities in the Vegas market.

On the other hand, Phoenix might be worth considering as well. While it may require a longer drive compared to Vegas, if the market conditions in Phoenix are more favorable, it could potentially offer better investment opportunities and higher returns on your flips. Researching market trends, supply and demand dynamics, and economic factors in Phoenix can help you gain a clearer understanding of its potential for success. We only have about 7,000 SFH's on the market right now and a lot of the investors I work with are having a hard time making the numbers work.

As for Dallas, although flying back and forth can incur costs, it could still be worth exploring if the market conditions are strong and the potential profit outweighs the travel expenses. Dallas has experienced growth in recent years and has a robust real estate market, which could present enticing opportunities for flipping properties.

Ultimately, it's crucial to conduct thorough research, gather local market insights, and consult with real estate professionals in each of the locations you're considering. They can provide you with valuable advice and help you make an informed decision based on your budget, goals, and the specific conditions of each market.

Best of luck with your flipping journey, and I hope you find the ideal location to kickstart your real estate endeavors!

Hey there! It sounds like you've stumbled upon an interesting variation of house hacking with your oceanfront rental in Florida. Living in your property during the off-season when bookings are minimal is a clever way to make the most of your investment. Now you're looking for suggestions on other locations in the USA or Canada that could serve a similar purpose with different off-season periods.

Your idea of finding a property near a ski resort is a good one. Ski resorts often experience a surge in bookings during the winter months, which means the off-season could be a great time for you to enjoy the property without affecting your rental income. Additionally, as you mentioned, you could potentially leave in the summer when mountain bikers start booking.

Here are a few other suggestions for locations that might fit your criteria:

1. 1. Coastal California: Consider looking for properties along the California coast. The off-season in coastal areas like Santa Cruz or Monterey tends to be during the winter months, while the summer months are popular for beachgoers and tourists.
2. 2. Mountainous regions: Look for properties in areas like the Rocky Mountains or the Sierra Nevada range. The off-season in these regions typically occurs during the shoulder seasons (spring and fall), while winter and summer attract outdoor enthusiasts, skiers, and hikers.
3. 3. Coastal New England: Explore properties along the coast of New England, such as Maine, Massachusetts, or Rhode Island. The off-season in these areas usually falls outside the summer months when beach tourism is at its peak.

Remember to thoroughly research the local rental markets, tourism patterns, and property regulations in these areas before making any decisions. It's important to ensure that your investment aligns with your goals and that you comply with any legal requirements.

Best of luck with your house hacking adventure, and I hope you find the perfect location to replicate your successful strategy!

Hi Austin,

Thanks for sharing your situation and seeking advice. As an aspiring real estate investor, it's important to carefully consider your options and make informed decisions. Let's discuss a few points to help you make a decision.

1. 1. Local Market Assessment: You believe that the Arizona market still has growth potential, which is a positive sign. It's crucial to research and analyze the market trends, including factors like job growth, population influx, and infrastructure development. If you have confidence in the long-term prospects of the Arizona market, it may be worth pursuing properties there.
2. 2. Budget Constraints: Your pre-approval limit of around $300k may pose a challenge in finding a suitable property within the desired price range of $350-450k. However, your plan of house hacking with roommates could potentially bridge that gap. While it may lead to a higher debt-to-income ratio (DTI), it's essential to carefully evaluate the associated risks and consider whether you can comfortably manage the financial responsibilities.
3. 3. Financing and Loan Options: Banks generally assess the borrower's creditworthiness and evaluate the risks associated with the loan. As a first-time property buyer, there may be some hesitancy from lenders due to the higher DTI. However, it's not impossible to secure financing. You can explore different lenders and loan programs that may be more flexible or cater specifically to investors. Consulting with a mortgage broker or loan officer can provide valuable insights and help you find suitable options.
4. 4. Co-signing with Parents: While it's understandable that you'd like to avoid co-signing with your parents, it could be an option worth considering if they are willing and financially capable. Co-signing can strengthen your loan application and potentially increase your borrowing capacity. However, it's essential to have an open discussion with your parents about the implications and ensure everyone is comfortable with the arrangement.
5. 5. Exploring Out-of-State Opportunities: If you find it challenging to meet your investment goals in Arizona's current market, exploring opportunities in other states could be an alternative. Look for areas with strong rental demand, positive economic indicators, and potentially more affordable properties. Conduct thorough research on the out-of-state market, local regulations, and property management considerations before making a decision.

Ultimately, the decision depends on your specific circumstances, risk tolerance, and long-term goals. It's recommended to consult with a real estate professional, financial advisor, or mentor who can provide personalized guidance based on your situation. They can help you evaluate the pros and cons of each option and make an informed choice.

Best of luck with your real estate journey! 

Hi Fahria, this is a great idea. I had a client that was trying to do this and no one would rent to him. He would even offer more rent than the asking price. Group home rentals are in demand. I have not heard of anyone getting double the rental price but maybe 1.5xs the rental price. But definitely try for double. Put it up on Zillow and see what happens. A colleague of mine put hers on ZIllow and 90% of the inquiries she received were from people wanting to rent it as a group home. Hers was a 5 bed, one story, no pool. Make sure you collect all/max deposits you can. Charge 1.5xs the rent for a deposit, get 1st and last months rent (technically they can ask for last months rent back when they move in just FYI), cleaning deposit, etc . Homes that are 4+ bedroom, one story do well for group homes. If you have an HOA make sure they allow them, although if it is for older people they are in a protected class and your HOA probably can not do anything about it. Best of luck!

Hello Cathy and Max,

Welcome to the Biggerpockets community! Investing in multifamily rental units can be a great way to expand your real estate portfolio. Let's address your questions:

1. 1. What long-term city would you invest in today? Choosing a city for long-term investment depends on various factors such as job growth, population trends, rental demand, and economic stability. Some cities that have historically shown strong real estate performance include Phoenix, Arizona; Austin, Texas; Denver, Colorado; Nashville, Tennessee; and Charlotte, North Carolina. However, it's important to conduct thorough research and analyze the specific market conditions and opportunities in each city before making a decision.
2. 2. Are there any untapped markets left? Or is everything in all of the USA just too crazy and expensive to get into right now? While some real estate markets may appear saturated or competitive, there are often untapped opportunities if you dig deeper. Consider exploring secondary or tertiary markets that have shown signs of growth but may not be on the radar of every investor. These markets can offer relatively lower prices and potentially higher returns. Conducting thorough market research and staying up to date with emerging trends can help you identify these opportunities.
3. 3. Should we hold our cash and wait? The decision to hold cash or invest depends on your risk tolerance, financial goals, and market conditions. While it's true that real estate markets can experience fluctuations, trying to time the market perfectly is challenging. Instead, focus on acquiring properties that align with your investment strategy, offer positive cash flow, and have the potential for long-term appreciation. If you have the financial means and find a suitable investment opportunity, it may be worthwhile to proceed rather than waiting indefinitely.

Remember to consult with real estate professionals, conduct due diligence, and evaluate your investment goals before making any decisions. Best of luck with your multifamily investments!

It's great to hear that you're interested in exploring the medium-term rental strategy and considering the potential benefits it can bring. Gilbert, AZ, being close to the Banner Medical Center, sounds like a promising location for this type of rental arrangement, given the potential demand from traveling or relocating doctors and nurses.

While I don't have access to specific real-time data on the success of this strategy in Gilbert or the surrounding areas, it's worth noting that medium-term rentals have gained popularity in recent years. Many people find this approach appealing because it offers higher rental income compared to traditional long-term rentals while providing more stability and less turnover compared to short-term rentals.

By completely furnishing your home and offering 3-6 month rentals, you can attract a specific demographic, such as professionals in the medical field, who may appreciate the convenience and comfort of a fully equipped home during their temporary stay. Your home's proximity to the Banner Medical Center and its attractive features, like the stunning resort-style backyard, could be significant selling points for potential tenants.

To gather more insights and determine the viability of this strategy in your specific area, I recommend reaching out to local real estate agents or property management companies who have experience with medium-term rentals in Gilbert or nearby. They can provide you with market analysis, rental rates, and advice on how to effectively market your property to potential tenants.

Hey there! Welcome to BiggerPockets, and congratulations on your move to Phoenix! It's great to see that you're interested in supplementing your W2 income with real estate.

Considering your background as a mechanical engineer with steady income, you have a solid foundation to explore real estate investing. It's wise of you to start brainstorming side hustles to bridge any capital gaps you may have. Having an additional source of income can provide more financial stability as you embark on your real estate journey.

Setting a goal of $1000-1500 of gross cash flow per month is a realistic and achievable target. It's important to have a clear objective in mind when investing in real estate. Keep in mind that the actual cash flow will depend on various factors such as property type, location, rental rates, expenses, and financing.

You mentioned considering whether to purchase your first home or invest in a rental property first. This decision ultimately depends on your long-term goals and priorities. If your primary focus is supplementing your income sooner, acquiring a rental property could be a smart move. Rental income can provide a consistent stream of cash flow, which can help you reach your financial goals faster.

On the other hand, if buying a home for your personal use aligns better with your current lifestyle or if you're planning to settle down in Phoenix for the long term, purchasing your first home could be a good option. This way, you'll be building equity and potentially benefiting from appreciation over time. However, it's important to carefully analyze the financial implications and determine if this aligns with your timeline and investment objectives.

Before making any decisions, it's highly recommended to conduct thorough market research and analysis. Explore different neighborhoods in Phoenix to identify areas with strong rental demand and potential for cash flow. Additionally, educate yourself about real estate investing strategies such as buy-and-hold, house hacking, or even exploring creative financing options.

Remember to network and engage with the BiggerPockets community as well. There are plenty of experienced investors who can offer valuable insights and guidance based on their own experiences in the Phoenix market.

Best of luck on your real estate journey! Feel free to ask any specific questions you may have, and we'll be here to help you along the way.

It would just depend on the area. It is not really black or white. I would suggest getting connected with local realtors, wholesalers to help you find something.