All Forum Posts by: Matt Morgan

So highest turnover and selling the fastest are two different things, but both should be available through the Cromford Report. 

I know for sure they have average DOM for all zip codes and I've seen them give a snapshot of turnover by city before, but not 100% they have that info on demand.

Try the pro department at Home Depot. They're surprisingly competitive. Don't have a great installer for you however.

@Justin Ellis You're right, the 30 day minimum would definitely have an impact. But based on what I've read, the few changes that are probably coming will be more along the lines of the other items you mentioned.

Thoughtful write up Melanie and always appreciate you keeping us Scottsdale investors and agents up to date with the latest. 

From what I've read, the few potential legislative changes coming down the pipeline won't have a very dramatic effect on how STR's operate and will probably have a pretty negligible effect to an investor's bottom line.

Also, you mention only 1 community that you've come in contact with doesn't have a restriction against short term rentals. I personally know of 17 just in the Old Town area that don't have a restriction and I'm sure there are more. This number may diminish as the years go by as some communities have been amending their bylaws.

Please keep us up to date as you hear more.

Sending you a PM.

Typical days of inventory is 30 days or less across most price segments under $250k, yes.

I think the best thing to do is just see what landlords are asking on Craigslist along with sites/apps like Roomster and Spareroom.

I'm not familiar with the wholesale calculator myself. The numbers I gave were just examples based on transactional costs where I live, but they should hold up pretty well in your market too. You'll get a better idea of what those numbers look like as you do deals. 

Did you have specific questions on the numbers I allocated for each expense?

Hey Claudia, 

I think you're a bit low on your offer here so long as your repair number is right. The 70% formula is a bit out of date and really not specific enough when it comes down to it.

I think you're better off itemizing each expense and formulating your offer off of that. The big variable will be how much buyers in your area are willing to accept as a a return on their money. I think 10-15% is a pretty good barometer but it's going to be up to you to peg that one. 

Here's how I see the numbers: 

$270k sale price

-$15,000 repairs

-$13,500 sale commissions (5%)

-$2,700 in purchase closing costs (1%)

-$2,700 in sale closing costs (1%)

-$2,000 in holding costs

-$6,000 wholesale fee to you

-$33,750 profit to investor (12.5%)

=$194,350 Max allowable offer 

This is higher than the asking price which leads me to believe you might be off base on the repair number. Did you find the deal on the MLS? Deals with this kind of profit built in including a $6k wholesale fee aren't usually falling off the trees these days.

If you're sure you have your repair number pegged correctly, then you have room to up your wholesale fee IMO.

Hey Gaston,

You should be able to build an ADU (auxiliary dwelling unit) on the property so long as it doesn't meet the standard of a separate living structure. Usually this means not having a full kitchen, separate bedroom, etc. You can call the Phoenix Building and Permits department and give them your address - they'll tell you exactly what you can build and where you can build it with your required setbacks.