All Forum Posts by: Account Closed

Your best bet would be a change in family, like a parent needing to live with you.  Something that an actual need that causes the current home to not be suitable.

Best advice, get started young!  You are doing that, so well done.  I'd say definitely try to use your ability to move around and be flexible while investing.  If you can move into a place and work on it, saving yourself overhead, protecting your project, those can be good things and you'll also meet the neighbors and probably pick up more deals that way.  Don't get your real estate license, would be my other advice.  I'm a Broker of 20 years and the reality is that you become a target, you are considered an expert in your field (even if you haven't sold a thing, per the law in AZ) and you are held to a higher standard.  That can result in liability and having to make disclosures of being licensed etc, when you are really just looking for deals.  That said, study and read these forums and pay attention to everything, but make sure you don't just blindly swallow everything!  I'm from Chicago and know you are a smart guy or you wouldn't be going to Loyola (I got into Depaul, arch rivals!)... ended up at Northern thanks to finances.  Anyways, you can try hitting me up when you are in Phoenix and depending on how busy I am I might be able to meet up.

:) 

I'm going to disagree that your typical cap rate calculations are not in play on 1-4 unit multi-family.  Yes, it falls under Residential in financing and such, but the appraisal will still consider an income approach, as well as cost and comparable sales.  Typically income would be the strongest indicator they should rely on.  The key thing in AZ at least is that the zoning is MF, that will make all the difference on how they can use the income.  Example: sold a 3 plex, but really it wasn't zoned MH (even though we had proof the city approved another living space to be built at the back of the property via non-conforming use).  The appraiser (and I spent 2 hours on the phone with him) and I discussed this all in depth.  At the end of the day, the buyer's lender/appraiser looked at it as a SF with a guest house and could only take into consideration the SF rental income, as it's illegal to rent the guest house (everyone does it, though).  Ignore Zillow and the assessor value is not at all about market value.  You want to work with an agent who can pull good comps for you and help you know what is a good cap rate in your area, etc.  The question in your scenario is really what are the rents?  Mo-to-mo?  Is there value-add potential (you can improve the property and rent for more)?  Do you want a project or a turn key property?  Are there separately metered (do the tenants pay utilities or the landlord so you can calcute projected income/expenses more accurately)?

If you are strictly looking at investing, don't actually get your license.  Go to school if you want (although you can learn more with your time elsewhere), but once you are licensed you are considered an expert and held to a higher standard.  It's NOT a good thing to be an agent and investor, unless it's literally (the agent part) what you do fulltime (like me) and invest here and there.  I'm a Broker of 20 years in AZ and teach real estate school and continuing education here, as well.

I'd say buying for cash flow focus is a lot easier that finding flip deals, so just depends on your focus.  If you want cash flow, I have it!

I have a great off market property that is cash flowing over 8% cap rate and has VA guaranteed rents in 6 private (all have exterior entrances) spaces in a SF residence. It's in a developing area in the Valley and was mostly just rebuilt completely from stud up. This is a solid cash flowing deal perfect for an out of state investor. $330,000

I also have bank deals that are exclusive and all over the country I'm looking to put some packages together on. Lots in the Midwest, Texas, etc.

Title is down through escrow, but the benefit of an attorney on this type of deal is super valid. As a real estate broker I've done several of these, including for myself and the added layer of protection is worthwhile. I've saved a couple houses from foreclosure, one of which got some money out of the deal once I remodeled and flipped it (upon successful closing seller was paid). This one was a past client who died young and I wanted to get her daughter at least some money out of the deal. We netted $30k, which I split with a partner who did the work and put up the materials. I had about $18,500 into it reinstating the loan and paying utilities and payment.

Wow. 

I just closed on an improved lot South of Coimbra.  Interesting that there seems to be no title insurance there.

Be careful trusting Zillow, as there are huge issues on their information not being accurate. Your good agent can run rental comps for you based on MLS rentals. It will show what something ACTUALLY rented for vs what they asked for.