All Forum Posts by: Michael S.

Quick update.

After 9 months my FB Marketplace was unbanned.  No communication or reason given by FB, same as when it was banned.  To this day I have some guesses, but no explanation as to why.

On some forums they have mentioned "boosting" your ad as soon as it posts.  And as a boosted Ads FB will give it more consideration and will not ban it. IDK

Currently considering opening a FB business account and posting my rentals as a sponsored listing with an FB allowed link to my property manager's application webpage.  Why isn't my property manger doing this? (Sigh) another topic for another day.

Good luck!

Curious, what is the cost per sqft for a duplex in Houston?

At $200+ a sqft plus a year of construction loans, I'm uncertain building in Phoenix area is a project I want to take on. 

Seeking recommendations for a duplex or fourplex builder in the Phoenix area and the construction cost per square foot.

Four years ago rough estimates were at $100 sqft, now I'm seeing about $200 sqft with another $50K for site preparation.  Most of them are estimating a construction time of 12-18 months.

I have a few homes that are on large lots that should probably be further developed to maximize return.

Thank you

I'm surprised that there is not more conversation about WithRoam.  I'm curious to try them out for at least one owner occupied client transaction to see how they work at transferring the loan, forms they file, required contract wording, etc. 

Taking it a step further in the Phoenix market, I'm willing to pay the Roam fees (1% of purchase price)for my buyer out of the buyer side commission.

Antonio, 

Is your account still banned?

I've encountered the same issue with being "banned" from Face Book Market Place this morning.

I posted a house for rent on Friday and received 30+ inquiries over the weekend.  I responded to all of them.  Not all of them were good quality leads but we only need one qualified tenant.

This morning I got ready to reply to the 5 leads we had overnight and the message failed to send, only to find that we have been "banned" from FB Marketplace with no reason given.

I agree with with leaning towards more white.  When I tour former model homes it seems the more bold the colors, the more quickly it tends to go out of style.  

Hence the home with hunter green and gold tile accents often has a more difficult time selling.

Any advice on bathroom renovations? Trying to avoid renovations that are so trendy I look back in 8 years and think, "what was I thinking?"

Current bathroom is from the 1990s and is overdue for demolition.  I'm trying to find a balance between what looks nice and something that will not become dated too rapidly.  

A bathroom renovation in 2006 would involve as much travertine as you can fit into the bathroom and more travertine. 

So in 2023 what trends should I avoid?  I see a good amount of marble, subway tile and even though I like it a little voice tells me "maybe marble is the travertine of the future."  

Is agreeable grey paint alright? or is white better?

Attached is a photo of a lovely 1990s bathroom that will be gone in 48 hours. And yes the travertine floor "upgrade" to the 1990s bathroom was my idea 7 years ago (sigh)  :)

At the end of January 2022, my lender is offering just below 5% on mortgages 8 thru 10.  I was looking for sub 4% since some of my mortgages are at 4% already from a few years ago.

Is this unrealistic, is anyone finding sub 5% mortgages rates for more than 7 mortgages?

Thanks!

Congratulations on getting into realestate and having the initiative to go to real estate school and the dicipline to save up the $15K. If you have the energy then the Phoenix valley is a great for flipping homes or short term rentals.

For flipping homes you will need to find homes that are below market and/or are in need of some cosmetic renovations and can be staged with the right furniture. Staging has a big influence on both buyers and renters (when renting the staging is very light, but still a few well placed items have a positive effect).  The light renovations will help to unlock hidden value in the property and help buyers or appraisers justify the new price.

 Try to keep as much of the $15K as you can for cosmetic renovations and unforseen expenses.  Try to borrow the majority of what you need for the purchase.  There are some good programs for first time home buyers. Try to avoid the hard money lenders with high interest rates and fees (it adds extra stress to any project)

Right now the cashflow on most long term rentals is 4%, which can quickly be eaten up by repairs. The exception to this is short term renting such as AirBNB which has the potential to really boost your cashflow if you have a desireable property.  I'm currently holding my long term rentals but I've slowed down on buying new ones until I can find a source of loans with an interest rate below 4%.  (One advantage a new investor has is that they can usually get a better interest rate on a mortgage, after you get 10 mortgages some banks will notconsider you or charge a higher interest rate).  

2bd/2 ba is always easier to rent or resell. All that said I tend to avoid Condos due to the high HOA fees and how much you are tied to the value of the surrounding units. It would be hard for the appraiser to go too far beyond the sales price of the last unit sold in the same complex.

Good Luck! 

What should you expect from a property manager? What are realistic expectations? Let me know if I am expecting too much and if you have any recommendations for Phoenix, Arizona.

Is it unrealistic to have a manager drive by the home once every few months to see if the landscape is dying or over run with weeds or beer cans? It’s depressing and expensive to remove old dead trees. I had one manager tell me they visit the home once per year, additional visits are $70 each.

Wholesale Prices vs Retail for Repairs:  Should a property manager have a handful of repair people that they can call upon who charge wholesale prices rather than retail prices? My thinking here is that a manager should be able to negotiate lower repair costs since they can offer the service person more business.

Good marketing:  Bright, clean photos of the home. Ability to post the home online on multiple venues if needed and drive applicant interest and take applicant calls. My first property manager somewhat lax at marketing and answering the phone. This created increased vacancy times and lowering the rents. Eventually I had a friend call the manager to express interest in a rental and she never returned his call. I realized this was happening all of the time

Good judge of character:  Screening applicants but also looking at the unwritten things such as sloppiness or the condition of the applicant’s vehicle.

Financially Responsibility/fiduciary:  Honest accounting, timely payouts and paying of rental taxes. My second property manager was great… or at least I thought they were until they were shut down by the Arizona Department of Real Estate for embezzling all of the security deposits.

Thanks for your input.