All Forum Posts by: Edward Derosa

@Steve LeBlanc: I'm just curious, I went out of my way to invest in Phoenix and have done well there. I'm still buying in the area. Why would you need to go to other locations since you are in Phoenix? As I said, just curious.

Anyway, 1st Bank in Phoenix is doing 70% LTV on a cash out refi with a 15 year fixed, 1.5% origination, at 3.375%

Great question, and my assessment is based on my strategy. I invest for cash flow. There is no cash flow in Phoenix. There is plenty of value adds or decent flips (neither are my core strategy). I imagine you may respond in disagreement, I’d ask that you share your numbers just so we can take a look.

And when I say cash flow, I mean something like the following which I pick up in the eastern part of the country fairly frequently:

$130k purchase price

Monthly rent collected: $2000

Insurance: $1200

Taxes: $1500

PM: 8%
mx/vac: 10%
Financed 30 years at 5.5% ish with 70 to 80% LTV (timing dependent). We're talking over 20% cash on cash.

It just does not exist in today’s Phoenix market where Californians are driving costs up, up and up.

If you are comfortable, can you tell the name of the city/cities("which I pick up in the eastern part of the country"). I am from Los Angeles and investing in phoenix currently

Thanks

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I have lived in California, West Virginia, Texas, Illinois, Indiana.

One place i would live -- Phoenix Area, Arizona. Cant stand cold weather. Like hot and dry weather

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somebody mentioned on youtube -- "Annual gross income" minus "cost of goods sold" divided by 2

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I love Arizona. Has rental properties there. People are nice. Great cash flow. Low property taxes . Low supply of houses and high demand . Population growing at a rapid pace .Great weather (I like hot weather. cant stand cold weather at all)

2 Votes

All Forum Posts by: Edward Derosa

Edward Derosa has started 0 posts and replied 4 times.

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