All Forum Posts by: Account Closed

Investment Info:

Condo buy & hold investment in Phoenix.

Purchase price: $246,000
Cash invested: $22,300

2 bedroom 2 bath condo at Laronatta in North Phoenix/Scottsdale border. Purchased as a buy and hold in 2021 with a seasonal rental in mind. After operating for a year we are showing a gross revenue of about $31,200 with a monthly cashflow after PITIA + Capex + Vacancy of about $800. This is a minimum 3 month rental and has been 100% occupied this year.

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

I had heard from several people that the seasonal rental market in North Scottsdale/Phoenix catered well to the retirement group which is growing at a rapid pace in the area. As a passive investor I have a few things that I target outside of the financial metrics. Low vacancy, low maintenance, safety & security, proximity to shopping and dining, first floor, and surrounded by investment. This deal hit every marker, it was truly a no brainer.

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

I found this deal on the MLS. I came in at list price and asked for minimal repairs. I am a real estate agent myself so that piece was easy to navigate. My lender helped me to stand out by calling the listing agent and detailing his confidence in my ability to perform on the terms we'd agreed to.

How did you finance this deal?

Conventional financing with 5% down. I seasoned funds from a HELOC for both the down payment and the reserves.

How did you add value to the deal?

We did nothing to truly add value. Our improvements to date were to change out all angle stops and to hire cleaners to deep clean.

What was the outcome?

Right now we are thrilled with the investment. Both the value of the property and the rents themselves have increase upwards of 25% in this crazy year. The cashflow projections we had for it have been blown out of the water.

Lessons learned? Challenges?

Move QUICKLY when you find a deal that makes sense.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I'd like to take this opportunity to recommend myself. I did a great job for me. I could probably do a great job for you too :)

This moron has been calling for a crash for 30 years. It’s the same old song and dance….say something inflammatory to get attention and interviews, and push your book during those interviews. The only bold piece of what he is saying in that interview is to predict the month and year as if he has a crystal ball. It’s absolute trash and I’m not afraid to say so.

@Jonathan R McLaughlin very interesting article…though as you said, it’s a massive wrinkle to execute an eviction moratorium at a Federal level. To my point, Trump wears the inaugural sash on that one. The lack of expediency in legislating this issue has been astounding as it is, in fact, unprecedented.

@Bruce Woodruff please cite your sources on the existence of a Federally mandated eviction moratorium during the Spanish Flu and Polio. I’m honestly curious to read about it because to my knowledge neither epidemic instituted this kind of Federal control.

@Jack Liu I would just tell you that my primary target at the moment is the north valley. My personal feeling is that the Taiwan Semiconductor plant is about to change the game.

@Jack Liu the condo route is a good option. I own 3 in the $200k-$350k range here in the Phoenix/Scottsdale area. There is definitely cash flow to be had! Obviously you have to be prepared to move quickly and with conviction to get the deal done. At that price point your competition is fierce! Do you know the area well?

@Shiloh Lundahl I’m less concerned with the mindset of renters, and more concerned with the legal precedent this has set. Renters, at some point, will realize their unlawful protections have lapsed and adjust accordingly. The legal precedent can never be undone. I’ll be shocked if 50% of landlords are made whole by backpay. Once again, good citizens who provide clean, functioning, affordable housing are going to pay at the hands of government intervention.

I’m not for it.

@Jonathan Hudak you have to make some assumptions in order to analyze your options.

If you assume average appreciation for the area on the home over a 10 year period, trend the rents at historic levels, add the principle pay down, add the tax write offs, add then subtract the capital gains and depreciation recapture….

Does that outweigh the return you might receive on $100k invested in an index fund at 8%?

@Max T. rent controls and a moratorium on evicting military personnel during a war time are a far cry from what’s gone one here.

@Bruce Woodruff I don’t hate Trump. I don’t hate anyone. The CARES Act was effectively the bail out for landlords in my opinion. You’re damn right I would have been enraged if he’d declined to sign it. With the option of forbearance, you could sustain your position as a landlord to some degree. Without it, I imagine 50% or better of mom and pop landlords would be out of business and their lives in ruins.

However, I don’t believe that the CDC had the authority to implement the moratorium. A sentiment ultimately shared by the Supreme Court. This should have been vehemently opposed and expeditiously legislated. Instead Trump stepped aside, and then effectively passed the buck. Frankly, I think I’m just sick of absolutely nothing sticking to Trump. He is inaction was effectively gasoline on the fire of government overreach as it relates to personal property rights.