All Forum Posts by: Patrick O'Sullivan

Hey Cosmo, great question—lots of us are chasing that same sweet spot of cash flow and appreciation in Phoenix, so you’re not alone!

While there’s no official A/B/C/D map, you can generally break it down by looking at price-to-rent ratios, tenant quality, and neighborhood trends. Here’s a rough guide based on what I’ve seen:

• C-Class Areas with BRRRR Potential: Parts of Maryvale, Alhambra, and South Phoenix still have decent entry prices and strong rental demand. They’ve been popular for value-add plays, but you'll want to be selective block by block.

• Emerging B-Class Zones: West Phoenix, Tolleson, and parts of Glendale are worth a look—especially near planned developments or transportation corridors.

• East Valley: You’ll pay more in Mesa or Chandler, but if you find the right deal, tenant quality and appreciation potential can make up for tighter cash flow.

It's definitely a challenging market to BRRRR in right now, but if you're creative with your rehab and financing—and build a solid local team—it's still possible to find workable deals.

Are you leaning more toward cash flow or long-term appreciation? That might help narrow things down further.

Hi ShaRae—thanks for sharing the full picture, and sorry you’re in a tough spot. It sounds like you’re handling this with a clear head, which is huge.

Given the numbers you’ve provided, I agree with others that selling seems like the most practical path—especially since holding or refinancing could lead to more monthly losses, and you’re already carrying a hard money balance that’s tough to offset with the projected rent.

That said, if you’re still marketing the property, here are a couple quick thoughts to possibly improve traction:

• Highlight the recent renovations clearly in the listing—buyers often overlook rehab work if it’s not framed in a compelling way.

• Consider incentives like a rate buy-down or closing cost credit if it helps move things faster.

• If the property is vacant, staging or even virtual staging could go a long way in helping buyers connect emotionally with the space.

• And as Jackson mentioned, short-term or mid-term rental income (if zoning allows) could help offset holding costs while you wait for a buyer.

Most importantly, you’ve learned a ton from this deal—and that will pay off down the road, even if this one doesn’t finish the way you hoped. Wishing you a clean exit and a solid reset for your next project!

Hey Troy, sorry you’re going through this—it’s a tough spot, but it’s clear you’re doing everything you can to turn it around. Props to you for stepping in and being proactive.

You’ve already gotten a lot of great tactical advice in this thread. I’ll just add a couple thoughts that might help squeeze some extra traction out of your efforts:

• Reposition the Listing: Sometimes relaunching with new photos, updated staging (even virtual), and a refreshed listing description can make it feel like a “new” property to buyers who might’ve passed the first time around.

• Targeted Investor Outreach: If it hasn’t moved on the retail side, you might start running the numbers for it as a rental or mid-term rental and package it as a turnkey opportunity. There are buyers out there looking for finished homes, especially in desirable zip codes, even if they aren't flippers.

• Temporary Refinance or Bridge Loan: If you’ve got equity and just need breathing room, a short-term refi could buy you time to market more effectively—especially if you can drop holding costs even slightly.

• Rent-to-Own or Lease Option: In certain situations, this can help attract someone who’s in between buying and renting—though you’ll want to vet the legal side thoroughly before going this route.

Totally understand that this one’s been a heavy lift, but you’re clearly learning a ton and staying level-headed, which will only make you stronger for the next deal. Wishing you a good outcome on this one—keep us posted.

Hi Ashley, great question—and I can definitely understand your frustration.

Forming an LLC can offer a layer of protection, but like others have mentioned, simply putting it in your spouse's name might not shield you from liability if you're still actively involved in management. Courts can and do "pierce the veil" if the LLC isn't properly maintained or is clearly being used just to avoid liability.

One thing to be mindful of: Arizona has specific requirements for property management. If you're managing your own properties, you're generally allowed to do so without a real estate license. But if your LLC starts managing anyone else’s, even just on paper, you’ll likely need to be a licensed broker or hire one.

Also, self-managing from out of state can be tricky—especially when it comes to tenant screening, maintenance, and legal compliance. If you haven’t already, it might be worth looking into smaller, investor-friendly property managers. Sometimes they offer more flexibility and better communication than larger firms.

And as always, it's a good idea to check in with a local real estate attorney to make sure you're structuring things properly based on your specific goals.

Hope that helps—and best of luck getting everything dialed in!

Hey San, great question—and you're clearly doing your homework. Each of these areas has potential, but they all come with different timelines and risk profiles depending on your goals.

Here are some quick thoughts:

Wales Ranch / Schnepf Rd (Combs area)
The potential 24 extension could be a game-changer. If that project moves forward, it would likely improve accessibility and drive up values over time. That said, infrastructure improvements can take years, so this may be more of a mid- to long-term play for appreciation.

Bella Vista Farms, San Tan
This area still feels pretty early in its development cycle. You’re right—it may take a few years for retail, schools, and services to catch up, which could limit short-term rental appeal. Long-term, though, San Tan has been on the radar of a lot of investors due to affordability and growth potential.

North Queen Creek (Madera)
This area has strong fundamentals. Queen Creek’s been expanding steadily, and rental demand is solid due to proximity to employment hubs and good schools. While it’s more expensive, it might offer more immediate rental potential and a safer bet for appreciation if you're planning to relocate soon.

Blossom Rocks, Apache Junction
This feels more speculative. If you’re comfortable with a 3–5 year horizon and see it as similar to how Eastmark developed, there’s upside—but it could be slower to take off. Rental demand may lag until more amenities and jobs build out nearby.

County considerations (Maricopa vs. Pinal)
Maricopa generally has stronger infrastructure, better schools, and historically faster appreciation. Pinal offers more affordability and room for growth but comes with a longer timeline and sometimes more red tape for development.

If you're prioritizing shorter-term rental potential and appreciation, North Queen Creek might be your safest choice. If you’re open to a longer timeline and potentially higher upside, Wales Ranch or Blossom Rocks could work—but with more variables at play.

Would love to hear what direction you’re leaning. Keep us posted!

Hey Wes, welcome to the world of real estate investing!

As someone active in the Phoenix market, I’ll echo what others have said—this market is tough right now, especially for flips and first-time investors. Inventory moves quickly, and spreads on flips have gotten tight due to elevated acquisition and holding costs. With construction costs still high and resale values leveling off a bit, margins are slim unless you're sourcing deals off-market or have a rehab team you really trust.

On the rental side, multifamily cash flow is possible but often requires a sizable down payment to make the numbers work in today’s interest rate environment. Properties here rarely come close to the 1% rule anymore, so investors are often playing the long game—focusing more on appreciation, principal paydown, and tax advantages than immediate cash flow.

If you’re out-of-state, you’ll want to be especially cautious. Either have a trusted partner locally or consider investing closer to home for your first deal where you can be more hands-on. Alternatively, you might explore secondary markets in Arizona (like Tucson) or even other states where entry points are lower and yields are stronger.

No one-size-fits-all answer, but hope that helps frame what you’re up against in Phoenix right now!

Hi Ying, welcome to the forums and congrats on what you've already built—your current position puts you in a great spot to scale thoughtfully!

You're definitely not alone in finding it tough to make BRRRR work in Phoenix right now. A lot of investors are in the same boat, especially with high acquisition prices and tighter cash flow margins. It's smart that you're also looking into other markets, though as you mentioned, getting comfortable out-of-state takes some effort.

A few thoughts based on your situation:

• Local Advantage: As a licensed agent, you already have a huge edge locally. Even if Phoenix deals aren’t penciling today, you might find opportunities in nearby secondary markets where your boots-on-the-ground knowledge still applies—places like Tucson or parts of the West Valley have been mentioned for better cash flow potential.

• Out-of-State Strategy: If you do go out-of-state, the key is strong due diligence and building your team before buying. Focus on landlord-friendly states with stable job growth. Many investors have had success in places like Indianapolis, Kansas City, and parts of Ohio and Florida. Just be prepared for a steeper learning curve in the beginning while you're getting familiar with new submarkets and local quirks.

• Financing Choices: You mentioned using a 15-year loan—great for building equity quickly, but it does eat into cash flow. Many investors opt for 30-year fixed to maximize monthly spread, especially early on. It might be worth running the numbers both ways on future purchases and seeing which strategy fits your long-term goals best.

• BRRRR Today: In this environment, it helps to be flexible—maybe combining a value-add rental strategy with occasional flips or partnerships. Also, keep an eye out for distressed properties where you can force appreciation, which makes the refinance stage of BRRRR much more powerful.

Appreciate you sharing your journey—looking forward to seeing how you continue to grow your portfolio!

 If you decide leasing it is an option for you, we can help with that.

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Hi there,

I’ve been using Buildium for the past 8 years and have had a great experience with it. I like that it’s an all-in-one platform for tenant applications, rent collection, and maintenance requests, which helps keep everything organized. The interface is user-friendly, and the reporting tools are especially helpful for tracking property performance.

One downside is that it can be a bit pricey for smaller portfolios, but the features have been worth it for me. It’s definitely worth exploring if you’re looking for a robust management tool.