All Forum Posts by: Nick D.

Looking for advice/direction on how to rezone a single family home to multi family. Subject property is in Phoenix, AZ and looks to be ideal for throwing in a wall and kitchen and making it a duplex, but I'm not sure how to go about zoning it. It is in an older residential area no HOA's closest multi family is .5-.75 miles. Is this something that is doable or never going to happen? Thank you!

@John Knight Its not a guarantee, if the lender wants it done they can still require it. In my case I was able to purchase well below comps and with the 20% down it significantly lowered their risk so they allowed me to waive it. All in all, my first BRRRR was a great experience and I would completely disagree with anyone who says "brrrrs have to be cash deals to be a great deal" Be confident in your numbers and don't be afraid to dive in!

@John Knight, I just closed on a refi for my first BRRRR. If the numbers work I see no downside. I bought the property with 20% down saving on PMI but more importantly it allowed me to waive the appraisal. I completed a ground up renovation over the next 3 months, got the place rented in month 4 and got all my money including the 20% down back out in the refi. Only down side is you pay closing twice (First mortgage and then 6 months later on the refi) but if the numbers work then the numbers work. If you have the cash you may want to look into delayed financing. Saves you on closing and there is no seasoning period.

@Eric Lee Thank you. It certainly did align! I had been analyzing, Searching and researching for some time. I had another great off market deal fall apart just days before this one because I dragged my feet. So this one I knew I either needed to jump or get out of real estate because there is no time to drag feet especially in my market. 

Thanks @Chris B. this was the confirmation I was looking for but for obvious reasons hoping to not hear. I like your strategy of using Zillow to sort by size, I haven't done that one yet. I started high intentionally thinking I would just come down until I find its price but then it got way more interest then I expected it to in the first week so that gave me a false sense of confirmation.  I think I will let Friday play out and then decrease mid day Saturday. Luckily the pocket I am in is seeing a ton of flips and is really being improved so I hope that will help to continue to drive the price up over time. Also plan to have a bigger part in that then just the one home! Thanks for the local insight. 

@Erik W. This is an interesting point. When I first did my underwriting before purchase I ran it at $1,850. I got the property under contract and really started to analyze what level of quality I need in my flip. This made me find that the pocket I am in actually demands a much higher premium then the overall area code. There are apartments listed around the same price but are literally on the main strip of downtown. I am a few blocks off about a 10 min walk. There are other SF listed 10-15% higher at about the same distance I am but have been sitting on market over 45 days. My home is on the smaller size of the comps but is completely new and current (this is a younger market so I hope the trendy remodel will bring the premium) so I am priced along side properties with 250-300 sqft more then mine.

Do you think increasing price after 3 weeks will hurt and bring me into the “stale” zone?

@Ethan Jacobsen thank you for your response. The funny thing is I had all the interest during my coming soon listing. Once I re listed with the remodel done and full photo set the interest stopped. I wonder if listing early without a completed remodel hurt.

I can afford the vacancy as I fully expect to be able to refi above my all in with a positive cash flow leveling me with an infinite cash on cash but I certainly want to get it moving so I can give more focus on the next. Also two of the applicants I turned down once receiving their credit & back ground. I like the thought of touching base with earlier interests, will give that a shot before reducing.

Have you had luck listing any where else? I looked at Facebook and craigslist but most of what I see are C&D properties and I don’t want to just attract a lot of bad traffic for me to sift thru either.

I have just begun my journey in rentals and am looking for rental listing advise, I appreciate your time!

I recently bought a distressed SF in an up and coming area. I have completed a complete remodel and I am now on the second “R” Rent. I have my property listed thru Zillow and their partner sites. I listed a coming soon with 3 low quality (phone) photos 3 weeks ago. I kept that up for two weeks before pulling it down for 3 days and getting professional photos. I now have it re listed with professional photos for a week. I received a ton of interest with 4-5 applications 10 or so contacts and 3 showings. (None came thru to a signed lease)

Reason for my thoughts of starting at $2,200:

-Everything is brand new and follow current trends.

-great split floor plan with two masters (done with rehab)

-House is walking distance to a very upcoming downtown area, and great employment/industry

-two neighboring houses are rented at 1,800-1,900 but are in much worse condition.

My question is how long do you hold a price before decreasing? Do I drop it now just before the month roll or keep holding strong? The property will cash flow nicely even at 1,800 but I want to optimize returns.

@Matthew Trotter thank you!

Hey @JD Randall, your correct in the county assessor only shows so much. You need to use a number of resources in combination. You can use listsource.com to generate absentee & out of state owner lists along with many other criteria options. Their lists include contact info but it is a paid service. I'm a newbie myself so I'm sure there are many different ways to do this, but this is the first direction I am running down.