All Forum Posts by: Armando Carrera

Hi everyone, 

My wife and I are two weeks away from closing on our second investment property in the Phoenix area. It may or may not be the best time to purchase due to rates and high prices. But since we both have decent W2 jobs we decided to take the plunge. We are in it for the long game, so we felt it was right for us. 

Putting 20% down really puts a dent on our liquid money but better (we think) than it just losing value in the bank. 

Just for reference, our interest rate is 7.2% with an all-in mortgage (PITI) of $2,040. We will be doing a long-term rental for $2,400/month. We're extremely excited to grow our portfolio!

Thanks to everyone on these forums for giving us courage and insight.

Hi everyone,

Wife and I visited Flagstaff over the weekend and loved it. Now are considering purchasing out there to become part time "snowbirds". We have about $100k to put down which is about 20% in the market we are looking at. With high interest rates, we'd be looking at around $3800 PITI. How successful have any of you been in that market? We can cover that monthly but would be happy with a 50% occupancy to help offset those costs. Recommend any tips (for STRs), any guidance etc.

We live in the Phoenix metro area..

Thanks everyone.

Hi Farooq,

Ive also asked that myself. Im on the west valley and prices are still out of this world. 400k for a decent home that rents for $2200.

What Ive gathered is that these investors have/are in:

Syndicates 

Partnerships

Refi their appreciating home to purchase another one

Either way, a lot of these people own a small percentage of that home and/or are very over leveraged

Hi Tia,

I think a little more information is needed for you to get better answers.

1) Is this going on a property?

2)Do you need permits?

Does this jurisdiction require a block foundation? I ask because there are approved foundations plans that call out specific requirements (like strapping) and may qualify it as a permanent home. This would be a much more affordable route, again this would depend where the home is being installed. If not block is required you just need to cover the exposed home with hardi panel or vinyl siding. Ask questions where the home is going to be installed...

Wherever you are buying the home from should have approved foundation plans. They should be able to get them for you so you can get a few bids. 

Hope this helps!

Hi everyone,

Need some advice.

Will be purchasing another investment property but stuck on which route to go.

Purchase price being the same

Do:

15% down w/ 8% interest 

Or

25% down w/ 7% interest. 

I’m leaning towards one over the other but would like some feedback.

thanks everyone 

 HI Bretton!

Thanks for your feedback. We're still undecided as to which direction to go, but leaning towards LTR as we are thinking about this as a long term investment. Quite frankly, doing a STR or MTR does come with more hands on from us.

Like you mentioned, Ive also heard that STRs have taken a dip as well.

Thanks again!

Hey Stuart,

As someone whos worked in the MH industry for over 6 years, I can tell you it takes a lot of time and money to develop even a small parcel into a park. I currently work for a MH resort and the owner has 19 parks across the nation and always looking to expand. Hes got well over 8 figures, investors, contractors, engineers, an entire team, and still it takes years to hit the finish line. Making multiple trips to the city/county for approvals, to hearings, and countless other things I am not aware of. I dont want to discourage in your venture, but please be very careful and get more knowledge/mentors/investors/partners etc.

Good luck!

 Hi Walter,

Thanks for your response. I agree, with high prices and interest rates, it does make it tougher to cash flow. I have found a few homes where the numbers work and were in the positive (barely). My gut is telling to stick with LTR because here in the West Valley, rents are still high (surprisingly). For my wife and I, its about the long game. Were thinking in the next 5 years our other rental is paid off with some extra effort on our end, then that money helps us pay the next purchase much quicker etc.

Regarding home quality, we would only purchase a home that we could live in if necessary. If its ok for us it would definitely be great for renters since were so demanding.

Thanks again!

Hi Everyone,

Wife and I will be purchasing another investment home here in the Phoenix area. Id like some feedback on personal experience dealing with STR or MTRs in this market.

We have another investment home in the area that is a LTR and so far been superb. So were a bit nervous switching the game plan. We hear that a lot of investors in the area make a killing in that segment but were just not confident pulling the trigger and going that route.

How has dealing with Airbnb or furnished finders been?

Any advice would be appreciated.

Thanks for your time!