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Old 05-17-2022, 08:08 AM
 
9,741 posts, read 11,161,033 times
Reputation: 8482

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Quote:
Originally Posted by ajonesaz View Post
Several houses on my street sold for way more that they were worth and have just been sitting empty. There should be an extra property tax or something for companies holding 5+ residential properties.

I use to know everyone on my street, now I have a VRBO, 3 empty houses, and a bunch of rentals.
Sorry to hear that your neighborhood fabric has been destroyed.

Did you look to see who bought those properties that are sitting empty? That seems a little odd for someone to buy and sit on them. Anyone with a brain can see that a real estate storm is coming. The best case is the values stop growing around this summer. So I don't understand their business plan.

 
Old 05-17-2022, 07:39 PM
 
2,806 posts, read 3,177,941 times
Reputation: 2703
Quote:
Originally Posted by MN-Born-n-Raised View Post
Sorry to hear that your neighborhood fabric has been destroyed.

Did you look to see who bought those properties that are sitting empty? That seems a little odd for someone to buy and sit on them. Anyone with a brain can see that a real estate storm is coming. The best case is the values stop growing around this summer. So I don't understand their business plan.
The BfR (buy for rent) folks are really gearing up for a bubble and crash. There's so much dumb money dropping particularly in the SFH rentals here in Phoenix you can smell it. It stinks. The reaching for yield of this cycle (like MBS papers were in 2008). I love my investors who pile in at the top and bail out at the bottom. I love to buy from you in a few years.
 
Old 05-17-2022, 09:45 PM
 
9,741 posts, read 11,161,033 times
Reputation: 8482
Quote:
Originally Posted by Potential_Landlord View Post
The BfR (buy for rent) folks are really gearing up for a bubble and crash. There's so much dumb money dropping particularly in the SFH rentals here in Phoenix you can smell it. It stinks. The reaching for yield of this cycle (like MBS papers were in 2008). I love my investors who pile in at the top and bail out at the bottom. I love to buy from you in a few years.
Buy from me? I buy low.

In a few years, I bet the rates will be ultra-low again. Low rates and high inflation could mean it will turn around again. Of course, McDonald's may be paying people $50K to flip $9 burgers. All I can predict is peak PHX prices will happen in a couple of months. 4,000 more homes went on the market LAST WEEK so it's only a matter of time before the appreciation stops and (probably) will turn around some.
 
Old 05-18-2022, 07:19 AM
 
2,806 posts, read 3,177,941 times
Reputation: 2703
Quote:
Originally Posted by MN-Born-n-Raised View Post
Buy from me? I buy low.

In a few years, I bet the rates will be ultra-low again. Low rates and high inflation could mean it will turn around again. Of course, McDonald's may be paying people $50K to flip $9 burgers. All I can predict is peak PHX prices will happen in a couple of months. 4,000 more homes went on the market LAST WEEK so it's only a matter of time before the appreciation stops and (probably) will turn around some.
Sorry I meant the investors who pile in like crazy right now with "you", not YOU I misspoke. I know there would be no chance...
 
Old 05-22-2022, 10:14 AM
 
Location: az
13,731 posts, read 7,992,868 times
Reputation: 9395
Quote:
Originally Posted by MN-Born-n-Raised View Post
Buy from me? I buy low.

In a few years, I bet the rates will be ultra-low again. Low rates and high inflation could mean it will turn around again. Of course, McDonald's may be paying people $50K to flip $9 burgers. All I can predict is peak PHX prices will happen in a couple of months. 4,000 more homes went on the market LAST WEEK so it's only a matter of time before the appreciation stops and (probably) will turn around some.

The other day a property near my house reduced the asking price. I've mentioned before I have renters in Gilbert who are very well qualified to buy. They recently told me they plan to rent for another 2 years before looking to buy again. All eyes are on the inventory.
https://fred.stlouisfed.org/series/ACTLISCOU38060

Last edited by john3232; 05-22-2022 at 11:17 AM..
 
Old 05-22-2022, 12:22 PM
 
2,806 posts, read 3,177,941 times
Reputation: 2703
Quote:
Originally Posted by john3232 View Post
The other day a property near my house reduced the asking price. I've mentioned before I have renters in Gilbert who are very well qualified to buy. They recently told me they plan to rent for another 2 years before looking to buy again. All eyes are on the inventory.
https://fred.stlouisfed.org/series/ACTLISCOU38060
SFH inventory is actually rapidly rising in PHX, up 84% from a year ago... but still very low compared to pre-Covid. Still a lot of patience required IMO.

https://arizonarealestatenotebook.su...-in-1-week?s=w
 
Old 05-22-2022, 12:30 PM
 
Location: az
13,731 posts, read 7,992,868 times
Reputation: 9395
Quote:
Originally Posted by Potential_Landlord View Post
SFH inventory is actually rapidly rising in PHX, up 84% from a year ago... but still very low compared to pre-Covid. Still a lot of patience required IMO.

https://arizonarealestatenotebook.su...-in-1-week?s=w

Just out of curiosity. What areas would you like to invest and/or live in?
 
Old 05-22-2022, 12:40 PM
 
11,054 posts, read 6,875,918 times
Reputation: 18046
Quote:
Originally Posted by john3232 View Post
Yeah, 2020 was rough. If I recall 115 was the norm that summer. I had a renter constantly complain because the AC wouldn't drop fast enough after he returned home late in the afternoon. At which time setting sun was starting to hit the glass windows in the kitchen, living room and master bedroom dead on.

I ended up replacing the sun screens with a much better quality and that seemed to have solved the issue.
I can understand that he had sun hitting glass dead on in the afternoon (luckily I didn't) but couldn't he at least keep his A/C at 80-85? That's what I did while working in Phoenix during the day. I'm sure things like thermal room darkening curtains were used or at least suggested? Etc.? Just curious. And granted, I had a condo that was 750 sq ft.
 
Old 05-22-2022, 01:42 PM
 
2,806 posts, read 3,177,941 times
Reputation: 2703
Quote:
Originally Posted by john3232 View Post
Just out of curiosity. What areas would you like to invest and/or live in?
I live in North Phoenix and would be looking to invest there. Quite a vast area and I'm somewhat flexible. One idea I have (you never know how it pans out) is that my daughter and family do not live too far away from us because grandchildren are our life elixir. I would like to partner with them buying a MF rental where they can occupy one unit on the way for them to buy a SFH later. Let's see. In any case right now buying anything is out of the question as I believe the RE cycle needs to complete the boom phase and then go through a 4ish year long decline. Even if this decline will be nothing like 2006-10 and mostly in real terms (nominally I don't expect much loss at all) I do not want to buy until towards the end of the decline, say 2026 at the earliest.
 
Old 05-22-2022, 03:49 PM
Status: "Dad01=CHIMERIQUE" (set 1 hour ago)
 
Location: Flovis
2,916 posts, read 2,005,605 times
Reputation: 2624
Quote:
Originally Posted by john3232 View Post
Just out of curiosity. What areas would you like to invest and/or live in?
Furnished downtown Fresno condo is selling for 320k. Might be worth a plane trip to see it, John.
Pool, spa, and tennis court included.
500-600k likely price near downtown Phoenix.
Looks like a low hassle rental.

Just passing this to you cause it seems like up your alley

Link


https://www.zillow.com/homedetails/2...18763430_zpid/
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