Phoenix Live-in Flip

[Jana Crum]

Hi everyone!

Any input on this would be greatly appreciated! I am considering buying a live-in flip with my parents and sister before the end of the year in the Phoenix area. The main thing I am nervous about is how the market is shifting in Phoenix. We are starting to see prices decline and sellers are providing concessions again (sidebar, happy to see the market normalizing!). However, my concern is even if we find a great property with a great margin in relation to today's comps, by the time two years comes around and we are ready to sell will the market have stabilized to a level where we can still make a profit? By no means am I asking anyone to predict the future market. I am just trying to understand how best to position myself for a successful exit of a live-in flip in twoish years. 

Thanks in advance for your thoughts, Jana

[Bob E.]

@Jana Crum  If you have not done so Join AZREIA.  The have a great market update that they do at their monthly meeting.  I was nat able to make this months so I just pulled up the slide deck.  It took me over an hour to go through all the slides and really understand what they are representing but the market is CLEARLY slowing.  I would not look to start a new fix and flip right now.  Days on market is increasing, prices are softening, labor and materials have not dropped to offset either of those.  

Join the REIA, review the slides, attend the next meeting, and wait for an better time.