All Forum Posts by: Pamela Sandberg

With our appreciation and good job growth projections in the coming years, long term investments tend to work out really nicely almost anywhere in the Phoenix area. Look for areas that will be close to jobs: Tempe, Mesa, Chandler/Gilbert in the East Valley, and near the stadium and entertainment district in the West Valley. There are a couple of tech corridors in the East Valley that are scheduled to have quite a few jobs coming in in the coming years. 

Happy to answer any questions about specific areas! 

From a legal standpoint, you want each property in a separate LLC. This protects the equity from one property being used to satisfy the debts/obligations of another property. But you'd have to talk to a lender about how that affects your financing plays.

I've got a broker who's done great work for my investor clients - would you like me to DM info? 

There are several historic districts in downtown Phoenix. I see a lot of ADUs on these properties. I'd also look out in the Far East valley (Mesa). Scottsdale has quite a few as well, but that usually comes with a substantially higher purchase price. 

@David Rushton: I have a client who's done a couple live-in flips, and she loves it! As long as your family is okay living in a work zone, the finances can work out really nicely.

Another option similar to house hacking is to get a primary residence with a casita/in law suite/etc. So long as the property is zoned for MF, the unit can be rented out separately. This allows you to house hack while still maintaining privacy for your family.  

Happy to answer questions, discuss strategy, etc.!

We have VERY limited inventory on small MF (2-4 doors). This has raised the price quite a bit, so it's difficult to find MF and cash flow successfully. They do, however, exist - you just have to be ready to jump in with cash as soon as they hit the market. 

A similar strategy that is quite popular here is to house hack with houses that have an accessory dwelling unit (casita, in-law suite, whatever you call it). If the house is zoned for MF the additional structure can be rented out separately, so it's similar to a live-in duplex scenario. These properties can be a bit easier to find than duplexes. 

Happy to answer any questions I can!

Your strategy will depend on where you are investing. For example: here in Phoenix, demand has driven the price of multifamily WAY up without a corresponding increase in rent. This makes it difficult to cash flow. But they do appreciate well, MF can be a good buy and hold strategy. It's important to understand what will work in the market you want to invest in. 

@Jackson Gu: Get as much info as you can from different sources. Check rents on Rent Cafe or Rentometer, crime stats through the local police departments, school ratings through Great Schools or School Digger, etc. Putting all this info together can give you an idea of what's going on in each area. 

Of course, there's no substitute for insight from locals :) Happy to answer any questions I can! 

I think there could be some ways to work the numbers to make this work. For example: if you got a long-term tenant in the property before you do the cash out refi, you could show the lender the lease as proof of income. Then when you go to purchase the new primary residence, you have documented income from the long-term tenant to cover that property, and your personal income to cover the new mortgage. (Also, given the uncertain travel environment, getting a long term tenant for a while would probably be a good strategy anyway. You can always switch back to STR after things calm down.)

Happy to talk strategies! I also have a great lender who can talk you through the options. Let me know if you'd like his contact info. 

ASU is currently planning to have in-person classes for the fall semester (so long as there isn't another spike in cases or anything unexpected). The other schools will open eventually - I would be surprised if any of them were still closed by Spring semester 2021. There could be a few months of reduced vacancy, but it doesn't look like that would be an ongoing situation. 

Also: Phoenix generally has low vacancy numbers throughout the valley. Even if the schools aren't doing in-person classes,  we have plenty of workers who are always looking to rent!