All Forum Posts by: Doug McVinua

@Keegan Darby The first step I would take is to obtain the services of an excellent real estate attorney. Cases have been won, but I think the pressure of an attorney taking action (calls and or a threatening letter) immediately might motivate the seller to complete the transaction.

Good luck!

@Moussa Koulbou Hello, Blue Sky Living, LLC would be pleased to provide Property Management for your Phoenix and Ocotillo properties. We are a smaller company that offers a bit more personal service but large enough to have great tools and systems in place to manage effectively.

@Rob Saxelby Another widespread path taken for small investors wanting the best possible loan options is to purchase the property as an individual and then, after closing, transfer the title into an LLC. As your portfolio grows your options expand and more lenders will want to work with you in the LLC. Not taking anything from the lenders on this issue, they gave great advice also, it's just that most first-timers don't start in an LLC.

@Martin Koch My experience on residential lending (up to 4 plex) would be that many, if not most, real estate agents that hold most of the listings would prefer an in-state lender. In-state lenders know the steps and understand the contracts used in 99% of the deals, and it is just easier. Out-of-state lenders almost always require coaching to understand the local nuances of paperwork, pre-qualification forms, Loan status updates, funding, etc.

Having done plenty of each, an excellent local lender is just smoother and will typically be the first choice. I have had plenty of out-of-state lender deals work out and close, but they nearly always require more effort to keep everything on track. I have seen a few out-of-state lenders become difficult and request the parties adjust to their process, and that generally turns out bad. When an out-of-state lender doesn't know the local contract and declares they will have legal review everything before they use the local paperwork, you know it won't be easy.

On commercial deals, it's prevalent that the lender is out of state. It's also expected that attornies are involved in all aspects. Residential in Arizona rarely need an attorney as the paperwork is boilerplate. 

Broker/Agent and Property Manager in Arizona

1. Thank you for your service!

2. Have you considered the Tax Credit (Capitol Gains) for selling as an owner-occupied property? In many scenarios, an owner-occupied will have a $250,000 capital gains exception or $500,000 as a married couple available.

3. Your current property doesn't sound like a great rental. Many/most tenants will not care for the grass like you do and will cut the water drastically once they get the first bill. The other issue is the HVAC; unless it's a large house, the tenants will be very unhappy and not likely to stay long term (beyond one year), causing you regular turnover expenses.

Given the above, you might be better off to sell this one and buy a better rental property.

@Jonathan Orr I need more information to understand the property better. What is it, who are the prospects, where is it, what are the rents, and many questions? 

I am not trying to pry. Just way too vague to offer any help to you.

@Brad Gross What you are essentially looking for is a Property manager. Property managers are set up to take the property over, complete any preparations, market the property, screen tenants, put a quality lease in place, complete the Move-in, collect the rent, manage repairs, do inspections, move-outs, etc., for an owner. (Full disclosure: I am one and live in Queen Creek).

Regarding the pool, the good news is demand is high for rentals with pools. The downside is you need to be more cautious to protect yourself and the pool. Protecting yourself starts with proper measures to safeguard someone from accidentally getting into the pool, fences, door locks, window locks, etc. (Safety measures). As an owner, you will also want a good insurance policy. Most have an umbrella policy to give you solid coverage. Placing the property in an LLC is another way to provide protection. I have all pools professionally maintained by a pool service. Yes, this is a cost to the owner but when you weigh the risk of having a tenant not properly care for a pool it's worth it. Pool service right now is $125-$150 a month. Of course, your house with a pool will draw higher rent to offset this cost.

Good questions!

Arizona Landlord Tenant law would generally recognize month-to-month leases as 30 days or more, renewing each month on the payment due date and being cancelable by either party if proper notice is given before the renewal date. The exact wording in the lease could also drive the details of all month-to-month terms. As an Arizona Property manager, my rents are all due on the 1st of the month, so that is the renewal. Arizona law also generally only recognizes certified mail and or hand-delivered notices unless you have another means of acknowledgment. 

@Juliet C. Fountain Hills is a great community, one of the most beautiful in the Valley. 

You are spot on to look for a Property Manager to assist you with pricing and managing your property. We have tools to help you price your property accurately and manage the property long-term.

Happy to answer any questions you might have.

@Austin Bull , The bottom of the market was December of 2022. Prices have been rising since that time in almost all cases. December would have been the best time to buy in the Phoenix, AZ, market. Demand was at its lowest at that time. Since then, demand has increased, and today we see multiple bids on many properties. I had one recently with nine offers on it in the first two days on the market.