All Forum Posts by: Jay Norlund

No issue, but I don't like to operate in the grey. For our next home we were looking at renting an ADU like a Casita long term to offset costs and cash flow i.e. house hack. It's a bummer to learn that everyone who does so in our area is in violation of zoning. I agree there needs to be a middle ground.

Thanks Pamela, that's good info. Hard to believe cities aren't dealing with this amidst affordable housing debates.  Its hard to imagine how many people are technically in violation then

I've been researching the rules on guest houses, in-laws etc when it comes to building these.  Looking at the ordinance for guest houses from the City if Phoenix, (below) #2 seems to say you can't advertise them for rent?  Obviously there are a ton of sites that do just that.

Anyone have any experience in Phoenix renting an ADU for more than a few days with a lease? Is this allowed?

A guesthouse shall not: +5

(1) Provide more parking than the one required space; +5

(2) Be advertised for occupancy through any print or electronic media or through placement of signs on the property; +5

(3) Provide separate mail service or have a separate address from the primary dwelling unit; or +5

(4) Be separately metered for utilities. +5

Thanks for the comments. I am also seeing that Commercial lending seems to wildly vary.  Would love to hear more tales from those with 5+ units who tried/got financed.

Good stuff. I'm hoping we can get some Commercial brokers or lenders to chime in as well.

Calling all experienced mid range multifamily investors and especially lenders! I haven't been able to find a thread that discusses this in the detail that is as helpful as a few threads have been on 1-4 unit BRRRR strategies.

I had a deal negotiated for two triplexes on one parcel that ultimately fell through but had me doing enough research to realize most of the info out there is generic. So, what issues, rules and restrictions are there for the mid-range of multi-family (5 to say 12 units)?  I know a lot of people rely on cash out refinancing larger multifamily as a strategy but in trying to get financing for the deal and rehab, I came across a lot of issues.

Some questions to get us started (feel free to add your own questions and advice, I would love this thread to be a main place people can go for info on these types of properties):

What issues are there for getting cash out of a commercial loan with rehab costs (whether separate or rolled in)? Timing, LTV restrictions, etc?

When using seller financing, what terms apply for the refi? 12 month wait? Other issues?

How does using a bridge loan or interest only for the rehab portion affect the eventual refi?

Was just going to post about the S E "corridor" as I call it, CG, AZ City, Eloy & Coolidge.  IMHO a huge potential in 3-5 years between Lucid, Nikola and the data centers. When the ground breaking (finally) happens I think we will see it take off.  Where are my corridor investors?

Thanks for your responses. It's been about 8 years since we last rented and it wasn't in AZ. This is giving me a better perspective on what renters go through.

Having sold our home recently, we are currently renting. The landlord wrote into the lease that we are responsible for the deductible/service fee ($60 per) for calling the home warranty.  As a renter, its annoying.

As a perspective future landlord, it makes me wonder. Is this an effective way to cut down on requests for smaller, some might say petty repair requests? I know I am thinking twice before paying $60 for something that isn't much more than an annoyance. Thoughts?

All good points. I'm in AZ myself and find that a lot of it is oversold. Maricopa County (and Phoenix in general are on the fastest growing lists at or near the top constantly now). Rents are still catching up and seem suppressed in many areas for now.

One thing I am trying to keep perspective on when I decide on in area vs. out of area: Water leaks (especially from toliets) seem just as likely or more than damage from weather. For example, as homeowners, we have encountered leaks twice now in two areas and two houses in five years. Also, don't forget that deserts have monsoons which bring flash flooding to some areas......