All Forum Posts by: Noah Corwick

The tricky part will be to get the the city to change your property's zoning to multi family (if it isn't already). This can be a very long and annoying process and you're not guaranteed to get approved. Always safest to buy land that is already zoned for it. 

With that in mind, you'd also have to make sure the land you'd buy has water and electric running to it already. Buying land without this and adding the infrastructure to do it yourself will be really expensive. 

Then you'll have to figure out how you fund the project (land purchase + build costs). A lot of Hard Money lenders don't like to fund on land. So you'll have to figure that logistic out. 

But if you're able to figure it out and get it built, you can rent out the units and essentially BRRRR it and pull some/all of your equity out to repay your debts, yourself, and potentially keep the investment cycle going.

I would definitely talk to a contractor to understand what your build costs would look like. 

Properties are sitting on market for a bit longer now that supply is slowly creeping back up. 50 days isn't too terrible compared to the greater PHX area. 

Homes are averaging around 60-70 days anyways. 

So without knowing the listing history, I would say to try to ride it out a month or two more. But also talk to your agent and get their take on this scenario obviously as well. 

Hi @Yael Doron

Way to start 2025 with a bang! 

I'm not the strongest in knowing the Queen Creek market from an agent standpoint, but I have someone that I can recommend to you. 

I'll shoot you a DM!

All of the comments are spot on for things to consider. 

One thing to add is that when you buy a new build, your PITI will likely not be factoring in the correct state tax number. That's because the city won't calculate the actual amount till a structure is built, aka it's not just a plot of land anymore.

This will obvious cause your property tax bill to go up and also your mortgage escrow account as well (sometimes these things can make your mortgage shoot up a few hundred a month). 

These can make crunching numbers a bit more difficult because due to the guessing game. 

Hi Dean!

Do any of them have a detached casita as well by chance?   

Hey Ricky!

I work with a really fantastic home inspector. Shoot me a DM if you're still looking and want their info. 

This is fantastic Austin! I really appreciate you making this and starting with PHX. 

I'm sure this model will be super helpful in other cities as well. 

But feel free to keep making more for PHX because I'm not biased or anything haha. 

At the rough numbers you mentioned previously, I would say the 4 bedroom units. 

But it also depends on the area of PHX you are targeting as well. 

Hi Cara, 

It all depends on how quickly you want a profit. 

Most investors I know that buy considerable land quantities sit on it for 15-25 years and wait till the demand gets there. They also sometimes put in the infrastructure and then sell it to a developer as well. 

If you and your family are looking to strike sooner rather than later, it might make sense to sell it and reinvest in a new project. 

The 4 unit for sure. The numbers don't work for most Duplexs in the greater PHX area which includes not great cap rates. Plus if you are able to add a garage, that will go a long way for anyone who has lived in PHX for anything longer than a year.