All Forum Posts by: Ryan Swan

@Kevin Phu are you using a property manager? If Yes, then it doesn't matter how many rentals or what city they are in, you require a license and the PM will usually handle that on your behalf. 

If no, then follow the matrix and answer the questions based on how many rentals you own in each city. If you only one one rental in AZ and that rental is in Phoenix, then I don't believe you need a tax license. 

@Account Closed yes you're right, the HMLs can't do primary residence in order to get around dodd frank stuff. Would probably be faster to turn the vacant unit(s) while not living there anyway.

You might think so, but the good MF properties are still experiencing bidding wars. Investors from all over the country are flush with cash and looking to place it into stable MF. There are tons of buyers paying all cash who beat out pretty much every other offer type, including HML (which is like cash but still not cash).

1) A duplex will never cashflow unless you have a massive down payment. Think about it...you're living in unit A and maybe best case scenario you rent unit B for $1000/month. That's going to be a ton less than your PITI plus maintenance/capex. The benefit of duplexes is that they do not have to meet the FHA self sufficiency rules.

2) Triplexes will not meet FHA self sufficiency numbers. You can run the numbers on all of them but I've never been able to make them work.

One of my most successful clients is house hacking single family homes and currently onto his 3rd in less than 24 months. It's easier to find them, easier to buy, more price points available, and easier to finance compared to MF properties. 

@Account Closed he wouldn't necessarily have to tell the HML that he plans to occupy any of the units.

@Greg DeFeyter you've laid out a pretty thorough plan and it sounds like you have a good understanding of all the moving pieces. However, your strategy will be tough to execute for a couple of reasons

1) You might not be able to get HML loan at the terms you're expecting, plus interest rates are going up. It could be very expensive to carry that loan for 12-24 months

2) You need to also factor in your costs on the primary residence HELOC, which usually has a variable interest rate. Plan for that rate to go up as interest rates rise over the next 24 months.

3) Not only are the fourplexes expensive in the areas you listed, but also very competitive to purchase. 

4) I'm actually not sure if you can refinance into a primary residence FHA loan for a fourplex that you already own. Plus, FHA has some other rules (self sufficiency calculation being one) that makes it tough to use that financing right now.

Frankly I think there are much better/easier strategies to execute right now rather than going to the MF route. 

I believe Maricopa is all online. 

https://treasurer.maricopa.gov...

Bidding starts at 16% and interest is bid down until sold. Bids may be made in 1 percent increments. A "zero" interest bid will get the bidder the certificate with NO interest. When your bid is recognized as the low bid on the Results Page, you are obligated to pay for the certificate even if the bid was unintentional.

Doesn't say what happens if multiple parties bid to 0%, so I assume it's the first party to bid the lowest. 

It usually varies by county....eg Maricopa county (Phoenix area) handles the liens differently than Pima county (Tucson area). I know in Maricopa that the default interest is 16%, but that is bid down by investors purchasing the liens. The bidder willing to take the lowest interest "wins" the lien. And yes, the interest % can do all the way to 0%, at which point the play is to hope you end up with the treasurer's deed in ~3 years.

@Christina Hall The second half of 2020 turned out to be a great market for STRs in Scottsdale. A lot of people from more locked down states ended up coming here for extended stays to enjoy the more relaxed rules and the weather/pools. This trend continued through 2021. 

The easiest thing to do is to find a couple good subs, including a jack of all trades handyman and then oversee the project yourself. This will also avoid the sticker shock you'll likely experience with a GC 

https://mba-re.com/ is a good one. The owner/designated broker is Ann Dee White. Drop my name for good service!

@Ronald Cooperman with that many units, your life will change DRAMATICALLY if you get off Excel and onto a proper management software suite. They can manage your whole PM lifecycle from website, prospect applications, screening, leases, maintenance, electronic rent collection, and all accounting. The best ones for the number of units you manage will be RentecDirect or Buildium.