All Forum Posts by: Thomas Lo

Just want to say a quick thank you to all the responses.  I really appreciate the help!  I think that I'll be leaning towards building my investments in Phoenix, primarily for the proximity and opportunity reasons.  Though it may be more challenging compared to 3+ years back, I believe that the area is big enough and growing economically in a good direction that I will stay here.  Also, in researching the big shifts ahead from John Burns, I think the south and southwest are the long term future.  Thanks again everyone!

Hi @Whitney Bowling,

As I'm researching what approach to take, I've been looking at the prices and conditions of some of these homes in Phoenix.  I see one that's turnkey at $220k in Glendale'ish area and with just 10% down, I can be a bit above break even with the rents there and comfortable with that.  It makes me stop and think that I might simplify things, and just buy a good property with a small 10% down and let the appreciation run its course.  With 3-5 of these, in 5-7 years I'm thinking there should be at least $75-100k cumulative in appreciation.  Just like where you are now relative to 2016 for your property.

Thoughts...?

@Mike D'Arrigo, Thanks for the reply.  I bought via an exchange May 2019, so fortunately there is equity and good cashflow as a result of that (and going solo vs. our partnership situation on the property we sold here).

I am researching both areas, and agree that Phoenix is a very competitive market vs. Lafayette.  Though in talking with a realtor there, I'm finding out that for their market, things are also very tight in terms of inventory.  I'm just trying to weigh these factors:

1. The work it will take to put a team/system to find value add properties in Phoenix to get the bigger dollar appreciation and slightly above average cash flow.

2. How many units do I need to purchase in Indiana for the cashflow to make it worthwhile and forego the appreciation in Phoenix?

3. And what's the difference in time to reach my goals for appreciation vs. cashflow.

Is my thinking out of the norm to think that, with the Phoenix metro area being so much bigger, there are more opportunities to still find a strategy that works?
 

Thank you Denyse--the insight on Des Moines is great

Hi Whitney, I was also curious about Eric's question, so appreciate the answer.

I am a fan of subject to--have you had success with that in PHx?  The other creative idea about heavy with the cash is good--is that on a regular offer or seller-financing?  Sorry if I don't understand that scenario. :)

I'll be in Phoenix again in a few months--would love to connect if you have the time.

Hi Ryan, I'll pass for now as I'm not set up yet.  Mind if I ask how you ended up in Lafayette from Phx?  What made you decide to go there?  Thanks!

Donald, I'll PM you.  Definitely want a Phoenix investor on why you're looking elsewhere! :)

Hi Hersh, ha! I was also a grad (and undergrad) student at Purdue.  Good times.  What are your plans in the area?  Do you plan to expand from there to other cities or focus there for now?  I'll send you a PM next week, and let's talk!  Cheers!

Hi Eric, I just contacted a realtor in Lafayette, and he said conditions have changed since I last looked in 2017 and 8-10 caps are tougher for the price range I'm looking at $50-200k, but not impossible.

Due to fund availability, I think I'm going to have to dig a little more to get things going there.  Thanks for your reply!

Hi Ryan, thank you for the reply! I've also read that, but not to the degree you mentioned. And I've heard that the competition is tighter now too, so may dissuade me from OOS that far when I can do it in your market.

I spoke with a realtor this morning, and she said that it's too hard to identify good/average/bad neighborhoods wholesale, and it's better to look at each property to make that determination.  Is that correct?  I was hoping to narrow down an area to focus on, but perhaps it's better just to target cashflow by property...?

Thanks again!