All Forum Posts by: Ryan Hoover

We got some major progress!  Only about a week away from completion.  I'm really happy with the way the exterior paint and the master shower turned out.

@Chris Hawkins Nice to meet you!  I just sent you a message.

@Sweta P. I am going to sound like a homer, but West USA is a great brokerage to hang your license with.  You can work residential, commercial, and property management.  Also they allow you to sell your own properties, which some brokers frown upon.  The fee structures are very competitive and they offer the right level of resources for the pricing.  I believe HomeSmart would be the closest comp.  If you want a little more advanced training and don’t mind paying a higher percentage of your sales, I would recommend KellerWilliams.

Point well taken.  I am sure there are great opportunities in every state.  I wasn't implying little to no appreciation, just maybe the rate of appreciation and the price point at which that takes place.  5% gain on $150k property vs 5% gain on $300k property is a big difference.  But at the same time, if you can have 2 $150k properties for that same price, your cash flow will most likely be higher and the appreciation close enough.

Replacing your income with cash flow is a great goal, that a lot of people on here share.  Sounds like you are well on your way.

Appreciate the insight!  Have you had good results with seller financing and lease options?  I think that is going to have to be my next evolution if I am going to continue to add to my portfolio.

That's a pretty aggressive approach.  Sounds like your strategy is primarily to maximize cash flow, which I would totally agree is getting harder and harder to find.  It takes 20% down on a $300k property and even then, it is difficult to find deals that cash flow $250 a month.  

If you had a different strategy, more of a long term appreciation goal, would you hold those properties?  Also what areas of town are you invested?

I don't know if we can chalk it all up to COVID, but there is an alarming shortage of sellers coming to the market.  At the same time, interest rates are at record lows and the demand for the Phoenix-area real estate remains strong.  Investors seem to have dialed back their activity and I have seen a good amount elect to sell and take advantage of large appreciation profits.  Snowbirds (seasonal visitors) are choosing to stay away while we make national headlines for our outbreak.  It's questionable whether things will die down enough for them to make the large economic impact this winter/spring that we are accustomed to. 

My question is, how have you adjusted your strategy?  Any assumptions or theories that you are playing out?

Here is the residential supply for Maricopa County.  I can't recall an inventory level so low.  Making it great for sellers but difficult for buyers.  We are back to only a few days on market and multiple offer in some areas and price ranges.

Investment Info:

Single-family residence buy & hold investment in Surprise.

Purchase price: $275,000
Cash invested: $55,000

Long term buy and hold in a great neighborhood with amazing amenities. This home is basically brand new, built in the end of 2019. I was able to negotiate down to about $15k under market and will have decent cash flow right off the bat without having to do any upgrades. As the market is heating up significantly, I have had to become more creative to find deals that fit my long term goals.

What made you interested in investing in this type of deal?

Great community amenities and potential area appreciation due to some construction projects and growth.

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

Found it on the MLS like all my properties.

How did you finance this deal?

Conventional 30 year mortgage at a 3.3% interest rate!

Drywall and texture completed.  Goodbye popcorn ceilings!

@Christian Bishop Congrats! I wouldn't get too caught up in paying market price. Is this your first rental property? Made that assumption based on the FHA loan. Anytime you can get a $470k property for only $36k, you are winning in my book. Small multi-family with conventional financing is 25% down, which would have been $117k!

Las Vegas is an interesting market to me.  That's where I would expand to, if I ever branch out of state.