All Forum Posts by: Ryan Hoover

@Alan Robert Litz In my opinion as a Realtor and investor in the valley, the real appeal of SFH investing is in the appreciation. That may sound like blasphemy, given that cash flow is the primary goal of most investors on this site, but listen to most long time investors and see where they made their money. Even if you get a break even deal at 20% down (not advising by the way, just making a point) you are getting principal pay down, depreciation, and appreciation each month.

If you purchase a property at $300k with 20% down, you have $60k invested.  With a conservative appreciation rate of 6%, you gain $18k of equity the first year and compound each year.  Invest the same $60k in a 10% return (pretty aggressive) fund and you are earning $6k the first year.

As a native, I’m betting on the area for the long term.  If you only want cash flow, may not be the right strategy for you, as a few of my properties only earn $200 a month.  But if you have a long term outlook, Phoenix area has everything you want at a decent price point.

@Jeremy Hackenberg

Yes @Mike M. is correct. If we are talking about writing an offer on a property, the seller will require proof of funds for the contract. Which proof of the line of credit may be sufficient, or in a worst case you may need to transfer the funds to a bank account prior to being considered.

@Trey Crusey

I use the Zillow mortgage calculator religiously, which seems to work really well. There is even app to download. The problem you are going to run into is finding what interest rate to use for the calculation, since the buyers financial situation and choice of loan products vary significantly.

@David Diaz Mendias that sounds like a great strategy that I didn't even consider. Converting a SFH into a duplex is very interesting. Did you need to re-zone the property or is this more on the down low?

The ship has sailed for my family and I to house hack, but kudos to you for going that route.  If I could start over, that would be my approach.

Awesome @David Diaz Mendias!  Do you have any specifics you can share on the duplex?  I just purchased my first duplex last summer in Fountain Hills, but am looking to expand into that space in the near future.

I have 2 STR that I am going to sell as turn-key investments in the next couple of months and 1031 exchange the proceeds into a small multi-family.

@Brad Williamson  Welcome to the Bigger Pockets community!  I would focus on working with a Realtor who actually invests in real estate personally.  Would you work with an out of shape personal trainer?  This way, they will already have an established team of professionals to refer you, like a property manager, mortgage broker, insurance agent, etc.  Also deal analysis will be much easier for an established investor.  

@Chris Hughes  Welcome to the community!  I live and invest in the Phoenix area market while working as a Realtor who works with out of state investors, such as your self.  I believe you are already ahead of the curve by focusing in on this area.  Prices are still very attractive, the economy is growing at a faster rate than almost any other city, and population growth is averaging almost 200 new residents a day!!!  Which is nothing but great news for rental demand and long term appreciation outlook.

Let me know if you want to dive into some market research.  I really enjoy working with other BP members or just offer some advice from my perspective.

@Account Closed I sent you a DM.  Hope to get a chance to connect with you!

Welcome @Zach Dorworth and @Lavell Black!  The Phoenix area is a great investment opportunity and overall nice place to live.  Hope you both have a prosperous investing career in the valley!  Let me know if you need any assistance going forward. 

@Peter Tiberio

You won’t regret your choice. The Phoenix area has a lot to offer and is a great place to invest. As @Zach Wain stated, I work as an agent and investor in the area. I would love the opportunity to help you find your next investment property. Send me a DM with any more specifics on your preferences and we can connect.