All Forum Posts by: Noah Corwick

Hey Austin!

That's great that you already have a build in business partner with your girlfriend right from the jump as you dive into investing. 

I would suggest house hacking as an excellent strategy to start out. It will kill many birds with one stone. It'll allow you pay your mortgage (instead of someone else's mortgage) & you gain a place of your own (since you and your girlfriend will likely need a place to live anyways) that you are actually gaining equity in. Then once you've lived in it for at least 1 year, you can then go purchase another primary residence based on your DTI (debt to income) ratio and rent out the first home. Depending on your income, you will be able to rinse and repeat this process a few times.

If one of you is a first time home buyer, you can put down as little as 3% or 3.5% on a home and not spend all your savings at once. I would suggest looking at this with the end in mind, aka target homes/areas that would rent decently or will appreciate.

Hey Robert, 

This is a heck of a post! 

Way to absolutely crush it with your first investment. You saw the vision from the start + used creativity to expand your investment even more. 

Great job. 

Hey Jessica!

As mentioned previously, house hacking is an excellent strategy to start out. It truly kills many birds with one stone. It'll allow you to have others pay your mortgage & obtain a place of your own that you are gaining equity in. Then once you've lived in it for at least 1 year, you can then go purchase another primary residence based on your DTI (debt to income) ratio. Depending on your income, you will be able to rinse and repeat this process a few times.

Overall I'd also suggest a versatile approach for investing. For example, instead of pigeonholing yourself to just AirBnB (which is down in PHX atm), I'd suggest looking at properties that depending on the market, might fit as a long term rental as well. Based on the climate of the market, you'd be able to pivot when necessary.

Hey Wes!

Your mentality is awesome for only being 19. I didn't get into investing till I was 26. So major kudos. 

Since you are living in AZ, it might make sense to house hack here in the valley to start. If you have a bunch of buddies who you are in college with, attracting roommates should be a breeze and they will end up cumulatively paying the lion share of your mortgage. 

It also beats paying all that money for a dorm that you obviously don't own (though I am a believer that being in the dorms freshman year is a key part of the college experience).

You only have to live in that house hack for 1 year, then can rinse and repeat or pivot.

This exact strategy is what I wish I would have done in college. So hopefully you learn from my mistake lol 

Multi family here in PHX is a bit of a high barrier to entry and is not easy to start off with. 

Hey Jackson!

Way to make this post and put it out into the universe that you are ready to jump into REI.

Getting into multi family in PHX is a bit of a high barrier to entry and the number of options you'd have are super low. For example, there are a grand total of a whopping 34 multi family properties currently on market for under $500k. 

I definitely feel that a house hack strategy is an excellent way to start. It kills many birds with one stone. You can also target a SFH that has a casita or has room for one to be built. They just passed pro ADU laws here. And as this fleshes out and rents continue to rise, I feel like it's only a matter of time till renters are more open to this type of living. Going this route creates a multi family scenario creatively.

Hope this helps! 

Approach it with a personal aspect.

In PHX, which is flooded with Wholesalers, most have a very transactional and non very personable demeanor. When talking with prospects, this tends to show and a lot of times is a turnoff. 

I find that if you approach a prospect with the mindset of coming into the conversation as a partnership and that they are actual human beings, you'll standout. 

Hi Sagar! 

I agree with the comments here as well, the 1% rule is not realistic with most properties here.  

If you really do believe in PHX/AZ, I think targeting a SFH equity play right now is definitely the move. As others noted, $300k wont move the needle too much out here unfortunately. And even if you do find one, it'll likely need a solid rehab/refresh anyways, which will make you go above your budget anyways.

My plan of attack would be to target C areas that are projected to become C+/B's in the future. Certain cities are growing tremendously, so you might not need to wait overly long for things to come to fruition. 

Hey Ryan!

I see that you are in PHX as well. 

Have you looked at properties in Scottsdale? Or are you looking to not invest in your backyard so you can have that annual vacation spot?

I ask because there's a property near old town Scottsdale that I actually just came across thats a rare short term rental play. 

Hi Ben. Deals can be found on either valley honestly. Typically the barrier to entry is a little higher on the east valley, but the reward can be larger along with it. 

It also depends on what type of investing you are looking to dive into. 

At the end of the day, deals can be had. PHX is just a tougher market than others to find them. 

I'd agree with Mike. I would also add that segmenting the homes into categories will come in handy as well. For example, understanding high end flip trends, mid tier & low tier. What qualifies as high end compared to mid/low will depend on that area and the price point. 

Another great way to understand trends is to go to open houses and walk the homes yourself. There's nothing like seeing with your own eyes and physically feelings the quality of flooring, finishes, etc. 

Best of luck Fiz!