All Forum Posts by: Matt Shields

Those areas are a mixed bag and some of the places pretty high crime. If you are looking at lower cost multifamily understand that those may cashflow well on paper, but will have higher repairs, evictions, ect... If you need help or ARMLS access, just let me know. As always, seek professional advice. Good luck! 

Mike, I agree that selling turn-key rentals doesn't involve securities but with the owner of IPX being barred from having a mortgage or real estate license in Minnesota, a cease and desist from Arizona, and complaints mounting from his turn-key rentals, I would be very cautious purchasing any property from him. 

Be careful out there! While there are good turn-key companies, this industry is fraught with fraudsters. Investment Property Experts (IPX) is a well known turn-key company in Arizona. They advertise a lot and even had a radio show. I used to listen to the show, it was really good and made me want to invest with them. I thought maybe I was doing it the hard way when easier profits were to be made. 

Unfortunately, I found that the owner had lost his mortgage and real estate license in Minnesota for equity stripping, breach of fiduciary duty, incompetence, fraud, lack of disclosures to consumers, and violation of an order to produce records, other forms of misconduct, and is permanently barred from mortgage origination or servicing. 

Recently, the Arizona Corporation Commission served IPX with a  cease and desist order and it appears that investors money is at risk.

If you need help, just let me know. Not all rental property needs rehab, and there are property managers if you don't want to manage the property. I would also suggest that you read some books on rental property investment and management, but you don't need to pay thousands to a guru. Good luck!

If you want a pickup, get one, but you don't need a pickup. I have been working on rentals and flips for years with a Mariner (small SUV) with a trailer hitch. Whenever I need to move something I rent a trailer, but the rest of the time I have the convenience/mpg of a compact SUV. I was going to buy a trailer for $3500 but found that I could rent one from Uhaul for $22 a day. $3500 is 159 rentals and I don't have to worry about storing or depreciating it. Another advantage of a trailer is that you can leave it on site for a trash bin (tongue lock). If you do decide on a pickup I would consider one that weighs over 6000lbs for the tax advantage. (Seek professional accounting advice) 

Why are you looking for a turnkey property? I can see buying turnkey's out of state, but locally I don't see the advantage. I'm sure there are some good turnkey's, but many slap together bad rehabs, throw in some tenants, and sell them at a hefty profit. There is a misconception that turnkey rentals are passive income, they are still a business and you have to stay on top of the property manager.

As always, don't trust the internet, seek professional advice. Good luck!

 Hello Pike,

BP will delete any ARMLS information that I post, so if you will PM me your email address and what kind of information you need I will send it. In general, Phoenix was ground zero for the crash but has rebounded to nearly pre-crash levels. Rents have also been rising. Housing demand is about normal but the inventory is low. For August 15, sales $/SF of $161.94 averaged for all areas and types from ARMLS, down 0.2% or 29 cents from the $162.23 for July 15. Pending listings were an average list $/SF of $165.44, down 0.6% from July 15 and made up 96.9% normal, 1.2% in REOs and 1.9% in short sales. This downturn is probably seasonal, but the trend overall is up.

As always, don't trust the internet, seek professional advice.

Welcome, Anthony! I'm an associate broker at HomeSmart. If you need any help getting started in the valley, just let me know.

 Section 8 is administered locally, so your results may be different. I was told the rate that my house was qualified for. Then when my potential tenant turned in her voucher I was offered a much lower price, even before any inspection, so I told them to pound sand. I never worked with them beyond that so I can't give you any further advice. 

Okay, I misunderstood. I thought you were in the city. Phoenix has had huge value gains in the last decade so selling the home here and cashing in your chips to use elsewhere isn't a bad idea.  BTW there are areas of the valley that aren't miles of beige stucco!

 I agree the surrounding areas are growing because people are moving out of Baltimore and into the growing suburbs, but the fact is they are still moving out of Baltimore. But one of the great things about real estate is that there are so many ways to make money, even in a downturn, and if you're cash flowing with Section 8 more power to you! I like to say "Find where the government money is going and get in front of it." 

I think the bigger issue is that it sounds like Brian would prefer to live in Baltimore, and that should also factor into his decision. It is much easier to manage local property.