All Forum Posts by: Jeffrey Daniels

Wow, man - congrats on 27 with 3 doors already. Certainly wish I had gotten started that early. I'm trying to get involved with AZREIA again, I went several times when meetings were at the Celebrity and always learned something and met someone. Last month they had some attorneys talking about LLC's - and I saw your units are in your own name - I don't advise on strategy, still that might have been a good one to catch. I'm out for June, but if you go in July it would be great to chat with you.

Quote from @Cameron Gomez:

Hi @Jeffrey Daniels,

Not looking to house hack rooms (my significant other would kill me lol), but the information you provided was very helpful and will be taken into consideration. Can you elaborate on what you mean by SFHs w/ADUs being concentrated to zoning available in older homes? This piece of information is going right over my head haha!

Cameron 

In my experience, I don't recall seeing many legit ADU's on homes built after say 1990's and later - newer tends to be in masterplanned HOA communities and whether that's due to their HOA or CC&R's - I just don't recall seeing many if any. Homes closer to Central Valley, built say 50's-70's, those tend to have existing ADU's or detached structures that people are after. Zoning may still restrict multiple dwelling units, so due diligence is highly recommended to make sure properties are fit for intended use.

The really new stuff is starting to offer multi-generational housing, which are larger houses that have an attached 1/1 suite w/ kitchenette.

Also have seen a new build townhouse with a large 1/1 upstairs, and a studio/kitchenette downstairs, with an interior foyer/stairwell entryway that could make it two doors - these still have the HOA and I would have to get an updated price sheet to see where they are on them if there are any remaining.

I'm sure budget makes a difference in every market, still I think around Phoenix most househack opportunities under the $400k's are going to be arguably class c/d. I'm still bullish on those markets longterm - it's going to take relatively more time and maintainence cost than some of the areas that have been bumped by STR's & tourism.

More and more first-time homebuyers are talking about house hacking these days, and like you said not many "want" to hack rooms. So I think holding (and maintaining/improving) any legit 2/3/4 or ADU property will continue to see higher demand from future buyers. Just my 2¢!

Quote from @Cameron Gomez:

Hi Ashley, 

My name is Cameron and I am in a similar boat as you as I am looking to House Hack into my first rental property in Phoenix, Arizona! I'd love to connect with you on here and pick your brain about our market's insights!

While no one can know for sure - I expect 2/3/4-plex properties will continue to appreciate in Phoenix - those with longtime ownership seem to be incredible cash cows rarely available to the public at a realistic valuation. Single-family homes with a casita/guesthouse can bring a premium - still those tend to be concentrated to zoning available on older homes in the Central Valley, an area that has already has seen extreme appreciation due to the revitalization of Downtown over the past decade.  Last year I represented the Seller of a class b 3/2 block singlefamily with an additional 700/ft² detached structure - $615k. If you're planning to househack rooms, multi-family rental development remains strong around Phoenix and tenants may have more options available in the next 2-3 years.

Hello @Viktor Singh! Finding properties can be the most challenging part of making great investments. There's a saying, "if you don't know where you're going, any path will take you there" - and that may be especially true with real estate investing. If you're not dialed in on which investment strategies best serve your specific strengths as an investor - the process can be even more frustrating. Everyone is looking for profit, do you have a specific method in mind to get there?

Hi Ashley, Isn't the car thing a bear? And unless one wants to really commit to downtown life - it's kind of necessary for getting around Phoenix.

Having access to that VA Loan is such a benefit. I like the 100% financing, still recommend keeping track of those va funding fees for strategizing - they can make a difference if you're aiming for a shorter term resale.

I wish I had figured out the house hack in my younger years! Love the idea of making it happen with a multi, and so do many others which keeps the demand for Phoenix area multi's strong. If you're planning on using financing, I'm estimating a starting price point closer to $400k's for arguably Class C that meets lender requirements.

There are probably smaller contractors around that are maybe more inexpensive. For a scenario like this, I'd personally go with either getting on an annual maintenance plan with one of the huge valley contractors, or see about getting a home warranty that includes an annual. Figure you’re hoping to get another 5-7 years out of the unit and going a la carte could result in overall higher per trip charges - and no one is happy when a tenant needs a hotel.

For 1031, I would consider Brad Horton at www.bhx1031.com - please mention I recommended him, only because he has been so responsive any time I've had questions.

@Jack Mann if you're shopping in the $300k's, I think you'll see reasonable options. We sold two fully renovated quads within walking distance to ASU for ~$475k each, those were completely turnkey after having been taken down to studs. I do see opportunities listed at lower price points, in my opinion most on the lower-end tend to be overpriced for location and condition, because there just aren't many listed for sale in that range.

@Jack Mann hi Jack! Congrats on graduation. What are we calling reasonably priced?

@Erick Villalba you asked for suggestions to get started... Have you connected w/ a lender yet? There are quite a few here on the forums, check out the Mortgage Lenders under Network tab up there 👆 or https://www.biggerpockets.com/loans

House hacking under hard-money, or having to share returns with a partner could restrict your options considerably.

There's an overwhelming amount knowledge, experience, and perspective floating around this bp universe. And it can be fun and exciting to dive in. I love that you're in Phoenix, licensed, and interested in participating in bp. I learn from everyone here! From what I've seen of the most experienced contributors on these forums though, is it's all about the numbers. So like asking where to find deals on 2-4 plex in Phoenix with no consideration to budget or expense is just like the start of a conversation i'm interested in.