All Forum Posts by: Jana Crum

@Andrew Kleiner First, it's awesome that you are taking the time to educate yourself about real estate investing and how to optimize your investments! As a local Realtor, most of my investor clients are looking to capitalize on the rising market rents and maximize their cash flow. You're right, currently an upgraded rental in Mesa under 1,300sqft can rent for a little over $1,600/month, so you would almost double your gross monthly rental income. At the same time, your tenant will have to try to compete in that same market. If they are used to paying $850/month they most likely will not be very successful at getting a new place. Balance is key here, depending on the exact numbers it might be worth it to let her stay for 1 last year, put her on a 12-month lease, increase the rent and stipulate that rent increases will occur annually and if they are not able to pay the rent increases they will not be able to renew. This sets the expectations upfront and in writing so she cannot do this again next year and gets her used to paying closer to market rent. It also increases your cash flow and allows you 12 months to save for the necessary upgrades. Feel free to message me to discuss further!

@Steve Furst Great to meet you! It's always great to connect with local investors. Having been born and raised in The Valley it has been amazing to see the growth that our city has seen! I would love to meet you for coffee and talk about investing!

@James Lee Investing in a duplex in the Tempe/ASU area would be a great way to get started to build your portfolio. As a former SunDevil, I know from experience that there is about a 1-2 mile radius from campus that almost always is in high demand for rentals. Also, ASU is working with the Tempe government and private companies to transform the area around campus, so withstanding another pandemic that suspends on-campus activity, that area should continue to appreciate and see high rental demands. The main downside is marketing your rental to responsible college students so you don't end up with a "typical" college student as your neighbor.

Hey @Angelo Pana and @Bob Laskowski, welcome to the investing world here in Phoenix. I am a Realtor here in the Valley and I commend you guys for wanting to start off with a house hack! It's such a great way to build wealth and get your feet wet in the investing world! In areas like Tempe, Mesa, and Scottsdale, house hacking with small multifamily is definitely viable. The rental market in The Valley is still extremely hot, we are seeing rents continue to increase along with demand. Happy to help you guys in any way I can!

@Ryan Hoover I completely agree! I was just going over July's market update yesterday with my clients. In Maricopa County, 70% of the closings in July sold for over list price. We also saw that of the new listings that came onto the market in July, 60% of them were under contract within 30 days. This is down from 68% in June. Even though we are seeing buyer fatigue and lower than normal the market in the Phoenix Area is still a hot seller's market. There are still deals to be made for investors that are selling and buying in The Valley!

Here in Phoenix, we are seeing the brakes being lightly tapped- some buyer fatigue/trying to wait out the high-priced market. But in no way are we starting to see the market turn. Last month in Maricopa County 60% of the closings, went for over list price. And 60% of the new listings in July were under contract within 30 days. But we are also seeing 1 in 5.5 listings fall out of contract. Whether that be due to getting the inspection back, having multiple offers submitted/accepted, submitting blind offers, we are not sure. We are still in a solid seller's market here in Phoenix.

@Art Webb I agree that the best area for your strategy is the Scottsdale area. Plenty of snowbirds like to stay in that area and the rents for Scottsdale have been increasing due to high demand and low inventory. You will have fewer turnover costs by keeping one tenant in place for the 6 months that you don't use the property. On the other side, Scottsdale is always a hot vacation area with plenty of spas, golf courses, and shopping centers that attract visitors year-round. Airbnbs are always in high demand. Hope this helps!

@Caleb Rowe I would definitely agree that going for cash flow is the way to go! Right now we are seeing crazy amounts of appreciation (30.5% in July MoM, 24.3% 12months). The market cannot sustain this for the long term. With the end goal of attaining FI, cash flow is a much more reliable way to get there. Plus cash flow will enable you to stay FI and have income every month. You can also still find deals in Phoenix that cash flow, right now we are seeing rents steadily increasing and the demand for rentals here is just as high as those purchasing a home. 

Hello All!

I am a a Realtor and new investor located in Phoenix, AZ. I have family in Mobile, some of which are in construction and flip homes every once in a while. Currently, I am exploring the idea of investing in Mobile, possibly doing Airbnb's in Downtown or West Mobile. I would love to connect with experienced investors in the Mobile area to see if the Airbnb method is a feasible option. Please let me know your thoughts and what has worked best for you in this market.

Hey @Ryan Dunton! Personally I would say why not do both! That's what I'm doing. In the summer of 2022 I'll be starting medical school, but in the mean time I am building my real estate business. It allows me the opportunity to throw myself fully into real estate now and also build a great source of income and road to FIRE. Plus I'll be able to pay my way through medical school!! I used to think that I had to choose between the two and then I googled it and saw just how many med students either start or run a business while in med school. I thought, if they can do it why can't I?? So, that's my question to you, why not do both and get the best of both worlds?