All Forum Posts by: Jerrod James

A 2016 STATE law was passed that says that no city in Arizona can restrict the right to operate a short term rental. This applies to all cities including Phx, Scottsdale, Tempe, Mesa, Chandler, Gilbert, Sedona, Paradise Valley and so on. New bills have added some further rules and restrictions, like making owners apply for a Transaction Tax license, registering their property as a short term rental, and also providing direct contact information in the case of emergencies or complaints.

Like you mentioned, Scottsdale does have other rules related to occupancy and renting the whole house (not partial). However, I am very active in the Scottsdale STR market and I've never personally heard of these rules being enforced. Frankly I don't even know how they would be. Just look around Airbnb and you'll see dozens of houses that sleep more than the Scottsdale limit.

This post is spot on, you will have to look at the CC&Rs of HOAs mostly in AZ. Chandler and Gilbert are filled with HOAs but until you reach the $850k+ range where custom homes are built, you shouldn't find anything holding you back from STR. Mesa is free game as many communities until you reach Eastern Mesa (near 202, mostly retirement communities) have no HOAs.

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Mesa, Arizona

STR are so popular right now, a lot more management and "risk" with it as there is more action needed for success than a LTR. Both are solid if done right, one just is more complex (financing options, physical effort, boxes to check) than the other.

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You are most likely using what I call a Net Worth Loan, they look at your asset statements and will lend up to the amount that is in your liquid investment/bank accounts. This is only way I have seen to get a primary with no income, not 100% sure on the down payment on that.

For the investment prop there are plenty of options with no income. I am in one now, no income doc needed 20% down (haven't found legit lenders that do less and answer questions) and you can use interest only option for cash flow. I am a lender if you want to DM, if not that's okay. I hope you find best solution, there are lots out there depending on your goals!

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Orlando, Florida

I am taking your advice! Thank you, we were leaning towards this option and now I believe we have finalized our decision

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Hello BP! My partner and I currently have 1031 money that we want to use on multifamily. Based on the amount we have I believe 5-12 units would make most sense. I would appreciate any advice on next moves for us- i will outline a few details down below.

1031 $ ~ 125k

Own 3 other properties NOT all together (not able to be sold for this project)

Goal- 400k of gross rental income yearly long term

Understand residential model, have looked in to short term rental model.

Ultimately were going to use margin from this deal to spring us in to short term rental game.

I genuinely appreciate all responses thank you!

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All Forum Posts by: Jerrod James

Jerrod James has started 1 posts and replied 5 times.

Post: Arizona Short Term Rental Laws Mesa / chandler / Gilbert

Post: First Time Investor - Short term or Long term rentals?

Post: Getting Loans with no income??

Post: Looking in to Multifamily- want advice

Post: Looking in to Multifamily- want advice