All Forum Posts by: Account Closed

I am looking at some properties in Phoenix Az which are zoned R3. I am wondering if you can build more than the two existing structures? Any subject matter experts out there? Built in 1952. Thanks for your help!

We’ve purchased our 1st property. Which is a triplex in the greater Phoenix area. Wondering what our next move should be? We are short on investment capital and worried about stability of market in 2020. Advise?

To all,

Thanks for all the great advice. I’ve taken bits and pieces and formulated a plan. We’ve hired a PM that has many similar properties in the area. We are going to send an introduction letter with a brief intro of the new owners and an announcement of the new property managers. The letter will also announce a schedule of rental increases. In August we are going to do a 10% increase to all units with the exception of tenant that takes care of the landscaping in exchange for his continued services.

In January we are going to do another 10% increase across the board. Finally in June 2020 we are going to start a utility sharing program in which we will all split the water/trash/sewer bill. These increases will get the units near market value.

Our hope is to retain the current tenants but make the property a positive cash flow business.

Thanks again for the input! Keep you guys posted.

FYI. The current rents are 1/1 = $500 and 2/1 = $675. Rent-o-meter cites an avg of $800 for 1/1 and $830 for 2/1. Local PM thinks $150 increase is market value.

Thank you for all the great advice. It will help me make a much better choice!

@Marcia Maynard Thanks a lot for the advice. There are some good tips in your post that I’ll be sure to follow.

@Jace Thornton Thanks for the advice! I like that approach.

@Doug McVinua We will be hiring a property management company. We are currently vetting some out. We want to make sure that they are very responsive to the needs of the tenants. We want to show early on that we are Owners that care about our tenants and in return they care for our property.

We are also thinking about installing a coin op laundry in a common room for use by the tenants. Do you think that would be considered a step in the right direction by the tenants.

We are also thinking about writing a letter introducing ourselves and discussing the new changes, possible rent increases and seeking their input. We would mail that out and then Have the new PM visit them and discuss the topics in the letter. Thoughts?

@Jace Thornton It is tough to say if they are worth losing. The previous owner raved about them. One of the tenants even does the landscaping for free. So I think at this point they are not worth losing.

I am thinking about waiting a few months and then staggering a 10% increase. With the landscaper getting the last increase. So in 6 months they will all be paying 10% more.

@John Thedford All tenants are currently on a month to month lease. I will have to renew these once escrow closes. I plan to keep them on a month to month to feel them out.