All Forum Posts by: Ryan Hoover

Quote from @J.C. Martel:

Ryan,

Interesting stats. Surprised to see white mountains median housing price so low. I’m interested in buying in that area. 

Yes the median sales price can be misleading for that area that has significantly less sales volume than a larger metro area like Phoenix.  A few low sales can really drive down the median.

For March for example, the median in Navajo County was $454,950 but the average was $536,700.  There are some great areas on the mountain and the prices can vary greatly depending on the area.  Feel free to send me a message if you want information on a specific area or what you are looking for.

@Caleb Smith It will vary greatly between contractors, but yes that is typical to ask for a deposit upfront followed by a "draw" schedule.  Where you will make a certain percent payment at a building milestone, not usually a specific date in time.

You can attempt to negotiate the percentage of the deposit to meet your comfort level though it sound in this case that is going towards the first portion of work, so not at all out of the norm.  The main concern is to make sure to hold a percentage of money until your full work is completed, including any punch items.  Once contractors are paid in full, they are routinely difficult to get back out.

Hello All!  I'm very excited to share a piece that I wrote for RENT magazine on the economic growth to the Phoenix area market.  Specifically, the development of the massive TSMC semi-conductor plant.  Hope you enjoy and find some insights!

Link to full magazine with article.

The Greater Phoenix area has long been a favorite among real estate investors large and small looking for a great mix of appreciate and revenue, but now there is a new reason to be bullish on this market. Back in May of 2020, TSMC (Taiwan Semiconductor Manufacturing Co.) announced a plan to build their first US based, state of the art manufacturing plant, in North Phoenix at an investment of $12 billion.

Although not a household name, TSMC is responsible for manufacturing about 25% of the world’s semiconductors. The chips they produce are used in varying applications from household appliances, vehicles, and smartphones such as the iPhone, to aerospace equipment.

The Phoenix plant, which broke ground in July and is scheduled to begin production in 2024, plans to hire over 2,000 people to work in the first phase of the manufacturing. Additionally, supporting suppliers and businesses are already beginning to flock to the area, plus the need for workers to secure housing.

Though the plant itself is a great economic achievement for North Phoenix to attract, it will also be a catalyst for exponential growth and development of industrial, office, retail and housing projects in the area for years to come.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $441,500
Cash invested: $114,000

Purchased the property off of the MLS with a tenant in place. Even though the past landlord was ready to move on and reinvest into some other asset, the rental was performing at market rents and had positive cash flow from day one. There is additional runway for a value add in the future as the inside of the property hasn't been renovated since the initial construction in 2004.

How did you find this deal and how did you negotiate it?

I was the Realtor representing and negotiating on my own behalf.

How did you finance this deal?

Conventional financing with 25% dwon

Hey @Mason Weiss,

Welcome to the community!  I would love to give you more insights to the East Valley area, but my area of expertise is the North Valley.

If I was to sum up some words of wisdom... "don't over analyze your first deal, pull the trigger and learn like crazy."  For the rest of your investing career... "be patient and focus on the long term goals, that where the real wealth is made with time."

Originally posted by @David Mendez:

Our current loan is 241k, while the home could be worth between 350k-375k. This is based on homes that are currently selling in my neighborhood that were built by the same builder as ours (Same model as well). We also have PMI. We only gave 3% down at the time. Which leads me to another question. Could PMI also have a penalty while we try to refinance?

Hey David,

First off welcome to the community!  Looks like if you went the cash out refinance route, you could pull $21,500-$40,250 minus financing fees.  At this current point, not sure if that is enough capital for a 20% minimum down on an investment property as the purchase price would max out at $200k.  There is not much inventory in that price point to choose from and it may not be the type of property you are looking for.

I'm almost always an advocate to leverage your personal home to help fund your first investment property.  Locking in today's pricing and interest rates have their own benefits.  In this case though I am not sure if that's the route I would take.  Another option, which has it's own risks and nuances is to take out a home equity line of credit to access more capital as there are products that loan up to 90% loan to value, compare to the 75% cash out refi.

If neither of those options seem appealing or outside of your risk tolerance, I would follow the advice from above to live in the property for 1-2 years then rent it out. 

@Nicholas Ward Believe it or not, I have found all of my long term rental properties on the MLS. This includes the last year for my own personal portfolio and the clients I have represented to buy their rentals. Yes cash flow margins are thin, but just depends on your timeline and goals.

@Avery Bustamante you bet!  It’s my home town so I’m probably biased as well, but it’s a great place to invest with a bright future.

@Kevin Young sending you a PM now

@Kevin Young Are you looking for short term or long term property managers in that area?  In Pinetop specifically it's very much a vacation market and plays well for Airbnb and VRBO rentals.