Newbie from Phoenix Arizona

[Jason Robles]

Hello My name is Jaysen from Phoenix Arizona. I've always have been interested in real estate but have never pulled the trigger on anything. Currently I have a rental property that does ok (never meant to be an investment). The home was purchased in 2008 so I have positive cash flow ($300/month). The reason I even bring this up is I now have equity in home and looking to pull out to start investing in other homes (about $60k). My long term goal is to buy and hold real estate but looking to use this money to flip homes at beginning and use profits to make down payments on real estate I plan to hold. I have a few questions that I was hoping local investors could answer. Does the 2% rental income rule of thumb work in Phoenix Arizona or is that completely out of the question. Meaning if I can purchase a home for $100k can I rent for $2000? Also what is the spread on a fix and flip in my area I've heard many different numbers. Some people I've spoken to say that the average money made in this area is $10k to $15k per flip. Is this true. Also I've found a hard money lender that loans 75% of home purchase price online. When speaking to them they said percentage rate would be depending on deal but In between 10% to 13%. Just wanted to know if there was any local hard money lenders? Again new at this and looking to get foot in the door. Thanks for all the advice a head of time.

[Robert Lorenz]

2% is not flipping likely here... Phx metro runs on avg about 81 cents per square ft for rents, higher if you're offering LO's.  With 60k, if you're looking for cheap cashflow properties, try mobiles.  Before you spend one red cent, you should absolutely positively join AZREIA and Phoenix Real Estate Club.   www.azreia.org 

Best $200 you'll ever spend IF you show up for subgroups. Last nights was OUTSTANDING, and I hooked up with a local old REI vet who wants to look at and maybe play a role in my fledgling operation as a partner/mentor. Seriously, you should come. There's a few other BP members there that I see regularly, as well. Next meeting is on the 28th.... $20 to attend for non-members, or $200 for annual membership in both (join both, trust me). Hope to see you there, and welcome to Bigger Pockets :)