All Forum Posts by: Andrew McGuire

@Alex F chang-

I use @Jeremy Bottlinger of Somerset CPA's advisors. He knows real estate and is a local investor himself. Give him a shout. I think @Jake Wiley has some great advice on structure.

Good luck,

Andrew

Jocelyne, 

Congrats on the Tri! I am U.S. (Arizona) based, one thing I have learned is to not get to close/comfy with the tenant. Make sure to keep it business. When I began my journey as a investor/self manager I made the mistake of being friendly with my tenants. I believe they used it against me to get sympathy and made it hard to either get out or increase rents. I personally don't like doing either, what I have found works really well is have one of my work associates even pay someone to pose as the Property Manager and make them the bad guy. 

Could be different here but I think paid accounting software is too much for a tri. I like to use Stessa which is free for the time being. Easy to export to my CPA when needed. 

Congrats again, 

Andrew

Daniel, 

Happy to connect you with my friend and RE CPA Jeremy Bottlinger of Somerset CPA/Advisors. He works for a large firm but helps local investors on the side, he is based in Gilbert and is going to speak at our next meet up. 

Good luck, 

Andrew

@Jie Yu  

I think good advice on post of areas to stay away from. Truth is its hard not to find an area of Phoenix that is not seeing great appreciation right now but I believe the nicer areas (Certain parts of Phx, Tempe, Chandler, Gilbert) will be best. Going to be very hard to find something that is not borderline tear down for 300-400k in those areas. Might want to look at some of the outlying but growing areas like Buckeye, Surprise, Queen Creek and Santan. Could even go down to Maricopa/Casa Grande to make that budget work, Pinal county is fastest growing counties in AZ per capita. 

@Ashley Chris 

I use Jeremy Bottlinger w Somserset CPA's and Advisors, he does not do the bookkeeping but I believe they have internal. Happy to share contact

Akshay, 

That sucks, I'm sorry. I had this happen with a landscaper 2 years back. I was routed to small claims court but did not end up pursuing because the courts put the burden of serving and even if you end up winning a settlement collecting from the contractor. Is there any way to motivate him by saying you want to get him more work but need him to start or the threat of a bad review? Is he on any forums like facebook, Angie's list etc? Do you have address where he lives so you can serve a notice from claims court? Keep us posted. 

Phoenix Investors, 

As fast as prices are rising it appears market rents are rising even faster, here is what I see for the East Valley throwing out any major outliers on the low or high side. Most cities were consistent outside of Scottsdale which has several outliers on the high side, I'm guessing do to the demand in luxury rentals. 

From a deal analysis it is getting tough to make much work unless adding units, AirBnb or co-living all of which I am doing. 

What are you guys & gals Seeing? 

Brad, 

I do this with 2 of my properties and the demand is crazy, I have a few tricks like non HOA neighborhoods with ample parking and a good ratio of bedrooms to bathroom, for my next one I'm going to buy a larger house with 2 kitchens (this is not that hard to find in Mesa) and put at least 7 tenants charging 1k/month each including utilities. I have a few sites that other tenants referred me to that are tied to a church and seems to be an endless supply of good residents. I don't have a theme but like to keep all male or female add a couple of things in the lease to try to limit drama and label all shared spaces like fridge/pantry. I'm going to keep going to this over and over as I see heavy demand probably driven by crazy rent prices.

Hi Rebecca, I use this for now in the East Valley where I focus, I go through every 3 months and re eavaluate throwing out major outliers. For Short Term rental a lot of people use Airdna but I don't like paying for it and use Host Financial which is very simple and free, I have found it is very conservative compared to my actuals. Hope this helps! 

David, 

Can't speak for Tucson but I've BRRRR'd 3 properties in the last 2 years all in Mesa/Gilbert. Prices and rents are going up so fast its making BRRRR not that difficult, especially if you are open to buy small multi fam and combine strategies like STR and Co Living you can absolutely crush it right now. The more expensive mortgage because of PP is easily offset by how fast rents are increasing if your concerned about casfhflow post refi. #'s on one of the Mesa triplex: Of course we don't want to speculate that prices will keep coming up, I still try to find deals that are PP + Rehab Cost = or less than 85% ARV to help with BRRRR method