"Bad News on Phoenix area home valuations"

[S. Chris Webb]

"Guys, I heard from a "friend of a friend" type grapevine story that we may have a glut of rental properties on the Phoenix market now? He said that she said that with all the investor purchasing and now renting out here that there is
an oversupply on SFH rentals in the Phoenix metro area? - Have you heard anything alike? -Thanks, PL"

I concur with the other real estate folks who said this doesn't seem to hold true. There could indeed be pockets of high investor activity with lots of competition (and holding rental prices low), however, with so many people either a) lost their home to foreclosure/short sale; b) moving here from out of state for jobs; c) don't have the credit rating to qualify for the strict lender requirements; or d) still holding off buying to see if the market will fall any further ... there are plenty of renters out there to fill up the homes investors are buying. (And boy, are investors who realize what the market is doing are buying.) My company does Property Management, and we have very low vacancies, even in areas where rental competition is fierce.

[PoppySead]

Originally Posted by whodiman

However, I am pretty happy to see regular updates on the market that Captain Bill provides. those numbers (ie price/sqft) are comparable numbers we can use to make our own judegments.

I guess, or use them to argue about it. lol
You can find all the information on google, newspapers or just watch the local news. We have many a threads going with arguments about home prices falling or rising. Who knows until the fat investor sings.

[altus2006]

Capt Bill,

Are there any figures about how long it takes an investor to recoup monies spent on fixer uppers until they can get them sold?

As I remember, when we bought our house the banks would not allow another appraisal for financing until 6 months had passed.

altus

[Captain Bill]

Originally Posted by altus2006

Capt Bill,

Are there any figures about how long it takes an investor to recoup monies spent on fixer uppers until they can get them sold?

As I remember, when we bought our house the banks would not allow another appraisal for financing until 6 months had passed.

altus

As long as the bank who sells the home to the investor doesn't put a deed restriction on how soon it can be sold, then there are no restriction.

If you buy a home for cash, or financed, then a mortgage company usually won't refinance it for you until 6 months or a year. I ran into that on a home I bought. I bought it with a wrap mortgage, and then wanted to refinance to pay the wrap off in order to release the seller. The bank would not refinance until a year. I don't understand the logic.

[altus2006]

Originally Posted by Captain Bill

As long as the bank who sells the home to the investor doesn't put a deed restriction on how soon it can be sold, then there are no restriction.

If you buy a home for cash, or financed, then a mortgage company usually won't refinance it for you until 6 months or a year. I ran into that on a home I bought. I bought it with a wrap mortgage, and then wanted to refinance to pay the wrap off in order to release the seller. The bank would not refinance until a year. I don't understand the logic.

It traps the investor into either renting it or holding it for a year. You are right, it makes no sense, especially with many of the vacant homes in need of major repairs which ties up a lot of cash.

altus