All Forum Posts by: Josh Young

@Trey Campagna I just sent you a message. Call me anytime on my cell 802-274-8121 

@Trey Campagna without knowing much about your situation I'd say the first thing to do is to use a VA loan to buy a primary residence with as little money down as possible and the lowest interest rate available. Don't buy too expensive of a home and you will be able to do it again next year and turn your first into a rental. I am helping a client who is also a Veteran to do this exact thing right now; at first he wasn't sure he wanted to move twice to make it happen, but when he realized he was going to basically get a cash flowing rental property for free(no money down) he realized it was an easy decision. This is a strategy I've done myself with 5% down payment conventional loans. Let me know if you want to chat, I'd be happy to help you run the numbers.

@Kyle Bouldin that sounds like a good plan. Pinal County has a lot of rural horse properties that could work for what you are wanting to do. Some of my clients have used a company called Rezio for Architectual, Engineering, and Permitting, they are great to work with and handle the whole process. Pinal County is big, are you looking in the Apache Junction area or Casa Grande area or somewhere in between? Prices can vary a lot depending on where you are looking and the location of the utilities. I'll shoot you a message with a lender too.

@Zachary Luchs

Step 1: Get Pre-Qualified by a Lender.

Step 2: Find an investor friendly agent who also owns rental properties in the market you are interested in, a good agent will also either manage properties for you or will have a relationship with a property manager that they can set you up with. Having a knowledgeable agent help you analyze the deal is a critical step.

Step 3: Have the agent write the offer for you based on the analysis that you have done together.

Thanks @Doug McVinua, next to buying deals myself, helping other investors is my favorite thing to do. @Luz Taveras I just sent you a message, would love to connect, message me back and we can schedule a call.

@Ana Vhan as others have pointed out there are lots of good areas to invest here in the valley; but what I have found is that the highest rent for the lowest investment is single family homes in Casa Grande. I have been helping clients find, analyze, buy and manage these with great success. I have a client who just closed on his second one yesterday, this one is a new build $322k purchase price, and will rent for $1900. And I have another client under contract on a 2020 build for $272k purchase price and will rent for $1700. These rent prices are conservative and will rent quickly to great tenants. 

@John Dehn I like your idea of offering it as a closing credit, even if you aren't responsible for the charges, if you want them to buy the property that could be a good incentive to move forward with the purchase, it may seem insignificant relative to the purchase price, but small psychological things like that can have an impact on people's decision making. 

Quote from @John Morgan:

Quote from @Josh Young:

Quote from @John Morgan:

Will 350-400k SFR in the PHX area cash flow? How much would market rent be for something like this? 3k/month at least I would hope?

No, our property taxes and insurance are much lower than other states and you have basically no maint/repairs/cap-ex since they are brand new. Rent around $2k/month will break even or be a little positive if you put 25-30% down. You still have to hunt for the right deals, but they are there if you know where to look.

That’s amazing that 2k/month rent will cash flow you or break even on a 400k house with only 25% down! Maybe I need to look to invest there. The numbers just don’t work where I live. On a 400k house here I’d need to bring in at least $3300/month to break even with a 7.5% interest rate on a 30 year mortgage. 

 On $400k rent is a little higher than that, but it’s going to be hard to make the numbers work if you spend that much, I would stick to the stuff that’s between $300-350k, that’s where the best price to rent ratio is. Basically 7% of the purchase price in annual rent is what I look for. You also will need to buy the rate down lower than 7.5%, but the builder will give you 2% of the purchase price in a credit to help with that.

Quote from @John Morgan:

Will 350-400k SFR in the PHX area cash flow? How much would market rent be for something like this? 3k/month at least I would hope?

No, our property taxes and insurance are much lower than other states and you have basically no maint/repairs/cap-ex since they are brand new. Rent around $2k/month will break even or be a little positive if you put 25-30% down. You still have to hunt for the right deals, but they are there if you know where to look.

@Talia Bollard most subject to or seller financing deals are not deals at all, most of them require you to over pay in order to get the terms you want. If you just paid off a property that is the exact opposite strategy of overpaying to get terms.  I actually don't like the idea of paying off a property either though, I think one of the biggest reasons for investing in real estate instead of the stock market is that real estate is setup to use debt as leverage. You should leverage the paid off property that you have by doing a cash out refinance and then use that to buy a new build for $300-350k putting at least 25-30% down, you can find these that will rent for 7% (annual) of the purchase price and have very low property taxes and insurance. You will have basically no maintenance/repairs/cap-ex for at least long enough for you to raise the rent and even refinance.