All Forum Posts by: Andrew McGuire

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

Sean I've been thinking about this as well, I just did a rental analysis for each city in the East Valley, from Studio all the way to 4BR. I noticed immediately that rents have risen even quicker than I realized and I am way under market on a couple properties. Sadly one of my biggest problems right now is how I am going to raise rents and also how am I going to get good paying tenants out so I can renovate....rents have gone up so fast that they are having a hard time finding somewhere else. My plan is to let any leases coming up that I am planning a rent hike to give them time to start looking....3 months is what I'm doing right now. I do have a couple of leases in place that have 3% yearly rent hike built in, I am not going to renew those leases because it will still leave me way under market. 

Lots a good stuff here, thank you for the input guys! . I'm going to go the structural engineering route on this one to educate myself before calling the foundation companies to evaluate bid. I will let you know how it goes. 

Phoenix investors,

A lot of the good looking deals I come across either have known foundation issues or signs that point to that ex. lateral cracks internal/external, slight sag in roof, garage slab rising or sinking to driveway slab. Is there a way to have the issue diagnosed and bid on by foundation companies? I watched a few videos and one recommended having a 3rd party come out for $500-1000 and inspect before calling the companies to bid on. Any advice? 

Andrew

Can't say for all Phoenix but East Valley older parts of Tempe or N of the US60, Mesa within a couple miles of downtown on either side. 1-2 mile radius of downtown Gilbert or Chandler you will find pockets with no HOA's. Lots of small Mf's in older Tempe in Mesa. A few in Gilbert/Chandler but hard to come by.

I would say area within each city for attracting good long residents. Tempe is hit or miss, tons of development but still a few pockets I would stay away from, Mesa same. Gilbert or Chandler are hard to miss on but Chandler has a few small pockets I would stay away from. SFH and Condo are both good options, I live in condo here in Chandler and rents have gone up from 1700 to 2500 in the last 18 months, I get request all the time to help others find a place in here (McQueen/Ocotillo)

Jarvis, I like to look for SFH w built casita or SFH that has separate entrance. Small mf's will works as well, just saw a duplex in Chandler that needs a little work, Mesa and Tempe are littered with them. If you want to go newer Lennar has 2nd gen homes, you could live in the guest or main house and STR other. Good luck!!

I'm going to assume you don't want to live in the same house as the renters, meaning no separate entrance? If that is the case I don't think its an area of town as much as typically homes built before 1980, I've seen homes before 1980 typically can have more creative options to convert a garage with sep entrance, have a casita or 1 single family house that can be converted to a duplex with separate entrance. I'm East Valley so I typically see these in older parts of Tempe, downtown Chandler, downtown Gilbert or all over in Mesa. The exception is Lennar and I think one other builder is constructing multi gen homes, I saw a cool one from Lennar we almost purchased to move in and Airbnb the casita, I ran #'s and saw that we could be within 300-500/mo of having our mortgage/tax/insurance paid. There would be in HOA if you did that but have heard from others who do it that they are more forgiving if you live in the premises. Lennar calls them Next Gen.