All Forum Posts by: Kevin Phu

@Alan DeRossett just an article on this posted by la times and came here to see if anyone else has started talking about it. The LA times article said the tax would get reduced every year after the third year until it is completely eliminated at year 7. I'm not able to find the text of the bill to see if that's true. If it is, that's wild. Typical homeowners would get hit with an extra tax if they decided to sell and move (for whatever reason be it work, school, family, etc) before 7 years. That's insane.

I'm looking for open a HELOC on my primary and am looking for recommendations as well. Looks like I definitely should start with my local credit unions here in San Diego. Thanks for the info in this post!

Apartments.com is a good and free option

Really appreciate all the input from everyone! We lowered the rent to 2k and got a fully qualified family under lease. Searching the tax records to find the property is spot on lol I honestly had no idea it was public posted on the county website until earlier today. 

When we drove the area, it seemed like a C area to us but maybe we missed the other areas or didn't spend enough time in the area. We were only in town for the day but lessons learned and hoping this tenant is headache-free. We feel we did our due diligence and verified employment, references, etc, and are comfortable with them. On the plus side, we'll still be cashflowing after putting aside reserves and if the market continues to appreciate, we'll have an option of selling and getting out. Best case scenario is we got some long term tenants and we just keep it as a buy and hold.

Thank you for all the constructive criticism, it has been very helpful. 

Wife and I purchased a SFR in Phoenix a few months ago with the plan of making it a LTR. We thought we had our rental numbers right but after listing it for just over a month, we're looking to lower the amount again and possibly look at exit strategies before we start losing money on the place.

We purchased it for 335K and it appraised for 360K. We also put some money down so we are sitting at about 18% in equity. Based on comps, we might be able to sell it for around 370K and after holding costs, commissions, fees, capital gains tax, we are likely looking at breaking even and getting our initial investment back. 

We've listed the property on Zillow and Apartments and have received several applications but denied every single one due to evictions, criminal records, not enough income, excessive debt, etc. We're looking to lower the rent lower but I'm not sure that would bring in better qualified applicants.

Are there other strategies we should consider? Section 8? Corporate lease? Best case scenario for us is that we get a long term lease in place and get enough in rent to cover mortgage and put aside ~15% in capex, maintenance, and vacancy reserves. If the rental market keeps going up as it has, after the first year our cash flow numbers would look much better but that is a way out. 

For those curious, I called the AZDOR to ask this question. I explained to them my situation and how I followed the matrix. The person said yes, I was correct in that I do not need a license because I only have one single family property and it will be self managed. He then put me on hold to look more into it and said it turns out that although what he said is still correct, the city of Phoenix "wants a piece of your pie" so they require a 2.3% rental income tax no matter what so that in case, I would need to apply for a AZDOR TPT license and file. 

I'm a little hesitant to take that at face value but it came from the AZDOR office so...what do I do lol

Thanks all for the advice. I will definitely be reaching out to the Dept of Rev for clarification. From what I understand, even though I answer no on Q1-6, I would still need to pay the 2.3% tax. I will be self managing which is why I'm trying to figure this out for myself. 

Hey all. I recently purchased a property in Phoenix and I'm a bit confused about the "Residential Rental Income Tax" and licensing requirements. We don't have this here in my local market. I looked through the treasurer's site and it says that all residential rental properties must pay a tax on the income but based on the licensing matrix, I don't need a residential rental license. So if I'm understanding this correctly, I owe 2.3% (?) of tax on the rental income but I don't require a license to operate? I've seen on other listings that the tenant pays the tax. Is this common practice?

https://azdor.gov/sites/defaul...

Originally posted by @Shiloh Lundahl:

@David E Fitzgerald IV, @David Avery, @Ari Shiffrin, @Julian Broyles, @Jake Kain, @Trey Ridenour, @Mason Weiss, @Cody Conaway, @Jeff Rothenberg, @Zachary Harrison, @Israel Garcia, and @Tim Sylvester. 

Hey everybody. My name is Shiloh Lundahl and I run an investor meetup group based out of Mesa, Arizona. Many of you have stated that you want to get together to network and learn more options about real estate investing. Our meetup is great for that, so if you guys are interested, our next meetup will be January 24th. Here is the link to the meetup: https://www.biggerpockets.com/...

Thanks for sharing! I live in San Diego but recently purchased a SFR rental in Phoenix. So glad you have a Zoom option for us OOS investors! I will be adding this to my calendar!

I am a new investor in the Phoenix market and am looking for referrals for a trustworthy and reliable handyman that I can add to my team.