All Forum Posts by: Kyle Gardner

Hey Jeremy, we do this at our brokerage. Call me tomorrow

Hey Rodney, I develop multifamily properties in South Phoenix. I'm a GC and have a real estate license. Here's what I'd do. You've already got units making you money, utilize that extra land to make yourself more money with very low risk.

1. Consider what additional units you would add. (Ive got a group of people to bounce ideas off of, happy to discuss. And I'm currently building in the area) Do a market analysis to see what has the highest rent vs cost to build. 2 bed units? 3 bed? Garage, no garage? Etc

2. Do your numbers again and find out how much more in rent you'd get.

3. Find a bank that'll lend you the money to build and put permanent financing on it. Ultimately, since you're not paying for land, you should be able to build more units and add enough value to the property that you don't need to bring in any money of your own.

4. Execute the plan, build the units, get the long term financing that covers the extra builds, collect more rent and lastly, increase your net worth substantially. 

You're sitting on untapped money with buildable land. I'd be happy to buy it off you, or partner with you or you can hire us to help make this happen. 480-468-6611

Great to meet you Mark, I'm a GC with a real estate license. We build multifamily dwellings and create a lot of house hacking opportunities. I'll send you a private message. 

Overall, great idea. You need to underwrite the properties. How much money will you make following the methods you're suggesting? Consider all revenue and expenses and calculate best and worst case scenario. Then decide if it's worth your time and investment. Feel free to message me to discuss further. 

Reiterating what everyone is saying. Read their contract, if it doesn't accomplish what you want, get your own contract. 

Gilbert and Chandler have the best ranked schools in the state. However there are some areas of southern mesa that are in Gilbert school districts but are technically Mesa so they have better prices. Plus, they're within 5 minutes of the 60 freeway so they're great for commuting.

My wife and I bought our first house in one of these areas of Mesa. Home prices were about 20% less than Gilbert but we got highly ranked schools in the Gilbert district. 3 minutes to the freeway and if schools are a priority then this is a solid hack to get more rent while still getting great schools. I know Phoenix has pockets like this as well, you just have to do the research and look everyday for the right deal. 

Congrats Ana, I'm a realtor and general contractor in the Phoenix metro. I've sold over 200 properties, many of which were investments.

You'll have to decide what's most important to you. New build means low maintenance but new properties aren't a low investment. Good schools and great neighborhoods typically means higher purchase price and lower cash flow. Outskirt towns are less expensive but may see less appreciation if any at all. Condos and townhomes are nice but HOA fees eat into your profit.

So low maintenance with good cash flow: buy a brand new duplex, I just built and sold one and am building 2 more. But it's not a great area. 

Mesa and Chandler have decent homes in good areas with decent rent while still being close to everything. But the homes are a little older.

Gilbert has the best schools in the State but prices are higher and rents are only slightly higher.

Give me a call and we can find the specific niches that you'd like to learn more about. 480-468-6611

I don't disagree with anything that anyone said, but the question was about the PHX specific market and advertising more bedrooms. Agreed that maybe 1/1000 times you'll have some sort of issue with an appraiser and there is a proper way to do things by the book. But the question was about seeing "flippers" skimping on paperwork and whether that's what is actually happening. I can only speak for PHX as I have seen other parts of the country that're very strict. But what you're seeing is correct, they're adding bedrooms, don't take out load bearing walls and do the work correctly so it doesn't hurt anyone. It's not my place to tell anyone how much risk to take, but non load bearing walls by a good licensed contractor isn't something I'd worry about too much. If it worries you, then get the city to sign off on it with a permit.

Appraisers look for a window, door, closet, outlets and ac vent for a bedroom. I've read a few hundred appraisals in PHX Metro and sometimes you'll get away with not having the AC vent or closet but they're looking for it to be done in a professional manor as you stated. 

But appraisers always measure. I've also seen public record show a higher sqft than what's actually there. Therefore appraisers always measure and don't go off "permitted records." Their responsibility is to the bank and client to provide a value to what they find on site. Whether it's 1 bedroom or 4, the appraiser is there to give value based off their onsite inspection.

Very unlikely that you'll have any issue with the city in converting living space to a bedroom. Have it done by a licensed GC and if a buyer gives you problems because you don't have permits, you probably don't want to sell to that person anyways. You're providing value to an end buyer, if they don't like your value, sell to someone who does like it. 

Good to meet you Evan, I live in Gilbert as well and aspire to have that cash flowing portfolio like you mentioned. Currently I'm constructing duplexes, 4-plexes and working on an 8 unit as well. I love to talk shop about rentals, hard money loans, notes, deals and sweat equity (preferably very little sweat but more effective planning.) Reach out anytime