All Forum Posts by: Christian Solinski

Hello BP!

Does anybody have experience with Airbnb properties here in Phoenix? Could you elaborate on your experiences ... good, bad, profitable, non-profitable, wish you did something else, etc.? 

Any and all comments are appreciated!

Thanks,

Christian

@Jaysen Medhurst, I'm assuming interest rate will be higher with a FHA loan than conventional financing, something I will want to consider as well. Also, I want to pay as little in closing costs as possible as well, so the percentage, 3%, 4%, 5% or 6% will have to determined (FHA loans allow up to 6% on closing costs). Correct me if I'm wrong in any way

Mostly, what do you focus on when purchasing a property, ROI, Cash-on-Cash Return, etc.? Every time I think I have all costs accounted for, something else comes up lol

Hello BP,

What are your experiences/opinions about using a FHA loan over conventional financing? Which scenario is better, in your opinion: (1) waiting a couple years to come up with 10-20% for a down payment or (2) getting in right now with as little cash invested on my end?

My goal is to buy a duplex, triplex or fourplex using a FHA loan. Cash flow is very important; that said, at a minimum, I would like to live there for free. I have been having trouble figuring out Cash-on-Cash Return and Cash Flow with this extra level of complexity aside from conventional lending. There are all these additional costs with going the FHA loan route.

I have two main questions:

• Is Mortgage Insurance (MIP) determined by the down payment or is it fixed? If the down payment is higher, does that mean the MIP will tend to be lower?
• Will it be more difficult to find a duplex, triplex or fourplex using a FHA loan for financing if all the units have tenants in them, given the fact that FHA loan requires the owner to live in the property for a certain amount of time

Feel free to ask questions back in order to help me better understand the process and benefits/drawbacks...

Thanks Y'all!

Currently, I have a full time job in the fenestration business, and I was legitimately curious if the whole concept of "indoor/outdoor living" had a major effect on home values. 

For those that may not know, the fenestration business is simply know as the window/door market. "Indoor/outdoor living" is the concept of putting in a huge sliding glass door (the size of a whole wall), for instance, that would, when open, combine a backyard and living room into one free flowing state. Obviously, you would not do this if you did not have a good backyard.

Market research indicates that renovations, and subsequently, "indoor/outdoor living", are very popular right now.

For a personal perspective, would it be worth it to put these types of products in a Class B home, in a Class A or Class B neighborhood? Only downside ... most of these types of products are incredibly expensive (I would obviously account for the cost when calculating cash flow).

This would be a visual example of what I am talking about...

Personally, I would go with any firm that has been referred to you from other investors. In my opinion, finding a CPA is similar to finding a great general practice doctor. It is always a good idea to shop around and find the firm that you think will foster a great, long-lasting relationship with. Price is important too, but I would be willing to pay a little more for someone that knows my business and is always looking out for my best interests. 

Not getting a call back would scare me a little bit. It could mean a bunch of things but, at the least, shows a lack of initiative on their part. There are a lot of really great small firms that you could look into.

For instance, Hunter Hagan and Company, LTD., located out of Scottsdale. 

^backyard and living room

Currently, I have a full time job in the fenestration business, and I was legitimately curious if the whole concept of "indoor/outdoor living" had a major effect on home values in the Phoenix market. The weather here in Phoenix is usually very consistent and enjoyable, which makes me think that this may be a great market for it.

For those that may not know, the fenestration business is simply know as the window/door market. "Indoor/outdoor living" is the concept of putting in a huge sliding glass door (the size of a whole wall), for instance, that would, when open, combine a background and living room into one free flowing state.

Market research indicates that renovations, and subsequently, "indoor/outdoor living", are very popular right now.

For a personal perspective, would it be worth it to put these types of products in a Class B home, in a Class A or Class B neighborhood? Only downside ... most of these types of products are incredibly expensive (I would obviously account for the cost when calculating cash flow)

This would be a visual example of what I am talking about...

This is from a fenestration company located here in Phoenix.

@Timur Salikov

Personally, Gilbert would be a great area to look into first. First off, Gilbert is approximately ~$150,000 cheaper in median home value compared to its Scottsdale counterpart.

Downtown Gilbert has changed dramatically in the last couple years. The downtown area has added some very popular AZ specific restaurant/food chains like Dutch Bros, Postino East, OHSO (brewery), Joyride Tacos & Tequila, Whiskey Row, Culinary Dropout (to open soon), and more. 

Tempe and Scottsdale are within reasonable Uber/Lyft distance. We are talking <$15-20 range or cheaper. 

Mill ave, Tempe's very popular downtown, is about 15 min drive.

Old town Scottsdale, Scottsdale's very popular downtown, is about 20-25 min drive.

The best part of Phoenix is how easily accessible everything is...does not take very long to get places, especially in Gilbert since the town is right off the 60 and 202. Plus, Gilbert is centrally located in the "East Valley". 

As for hiking destinations, Gilbert is super close to South Mountain and closer to the Superstition Mountains than Tempe or Scottsdale.

Thanks,

Christian