Looks like Phoenix home prices may be finally going down folks. (Mesa: renter, HOA)

[WanderingRebel]

Originally Posted by john3232

I own rental homes and I suspect my neighbors like the fact I constantly look after the landscape. And that my tenants are nice people.

When I took over my rentals (2020) from property management there were a lot of problems with tenants. Fortunately, in AZ it is fairly easy to remove renters.

The day I can't get renters out without a costly hassle.. is the day I start looking to sell.

Something tells me you are the exception. A lot of the rentals in my sub are trashy. 1/10 would not recommend.

[john3232]

Originally Posted by WanderingRebel

Something tells me you are the exception. A lot of the rentals in my sub are trashy. 1/10 would not recommend.

All but one of my rentals come with an HOA. Rules regarding landscape and where cars are allowed to park are strictly enforced. Before a lease agreement is signed I make it very clear the property is under HOA guidelines. When they sign my lease agreement they knowledge they have received a copy of the HOA rules.

If the rules are not followed and I can move towards an eviction.

Side note: I bought a property in 2011 from the bank. The owner was long gone but his tenants were still living in the property. When I was completing the purchase the HOA informed me the property had almost 3k in dues/penalties. My RE agent was able to get them to wave what the previous owner owed. Just as important he was able to get the tenants to agree to leave. (I had to reimburse them $750 for a water heater they purchased but otherwise they left peacefully.)

[Greenvalleyfan]

Originally Posted by john3232

All but one of my rentals come with an HOA. Rules regarding landscape and where cars are allowed to park are strictly enforced. Before a lease agreement is signed I make it very clear the property is under HOA guidelines. When they sign my lease agreement they knowledge they have received a copy of the HOA rules.

If the rules are not followed and I can move towards an eviction.

That's your trump card. People scream about HOAs, but this is where they come in handy.

[jdahunt]

Originally Posted by WanderingRebel

Not really. Those things tend to work themselves out over time. Rental money is just paying someone else's mortgage. You'll never get that money back.

https://fred.stlouisfed.org/series/ASPUS

You just have to know how to invest the money......as you sit and wait for your property value to recover I would have already bought 3-4 other property's with the cash I have.....so as you gain another $100-$200k....I will be getting $300-800k.....and then look to do it again.....lol

Since 2012 I have moved in and out of 8 properties....some I rented some I bought.....I have yet to find a place that I must have or one that I can't live without......and each time I made serious bank.

If there is another serious recession, those with money will make a lot more like they always do.

[jdahunt]

Originally Posted by Nasudesu

I so agree. Esp in Phoenix.

Well I'm not going to let my wife of 35 years live in squalor......lol

[DAXhound]

Originally Posted by jdahunt

You just have to know how to invest the money......as you sit and wait for your property value to recover I would have already bought 3-4 other property's with the cash I have.....so as you gain another $100-$200k....I will be getting $300-800k.....and then look to do it again.....lol

Since 2012 I have moved in and out of 8 properties....some I rented some I bought.....I have yet to find a place that I must have or one that I can't live without......and each time I made serious bank.

If there is another serious recession, those with money will make a lot more like they always do.

Yep..like a can of Coke...enjoy it knowing you can always get another can of Coke (only 1 USD at the Beijing airport).

[asufan]

Originally Posted by jdahunt

You just have to know how to invest the money......as you sit and wait for your property value to recover I would have already bought 3-4 other property's with the cash I have.....so as you gain another $100-$200k....I will be getting $300-800k.....and then look to do it again.....lol

Since 2012 I have moved in and out of 8 properties....some I rented some I bought.....I have yet to find a place that I must have or one that I can't live without......and each time I made serious bank.

If there is another serious recession, those with money will make a lot more like they always do.

I'm hoping to find a few deals too. Sold over 100 properties over the past 21-22 years since my first sale of my college condo. I have a wholesaler friend sending me deals every couple days, there's just not enough meat on the bone in the deals I've seen.

For example, a house in Maricopa for ~$250,000 with an ARV of $315,000. A quick look at comps shows some sales in the $310K to $315K range, as well as some active listings not under contract yet but listed at $299,900. By the time I take 8-12 weeks to repair and update the house, the $299K might decline to $275K and suddenly I'm losing money. I need: 1. More meat on the bone, or 2. Quicker flips and less repairs which drag on the timeline in a declining market.

[jdahunt]

Originally Posted by asufan

I'm hoping to find a few deals too. Sold over 100 properties over the past 21-22 years since my first sale of my college condo. I have a wholesaler friend sending me deals every couple days, there's just not enough meat on the bone in the deals I've seen.

For example, a house in Maricopa for ~$250,000 with an ARV of $315,000. A quick look at comps shows some sales in the $310K to $315K range, as well as some active listings not under contract yet but listed at $299,900. By the time I take 8-12 weeks to repair and update the house, the $299K might decline to $275K and suddenly I'm losing money. I need: 1. More meat on the bone, or 2. Quicker flips and less repairs which drag on the timeline in a declining market.

Yep I think people will need to be patient and have the money once it makes sense to buy again.

The buying opportunity might not happen again for another 2-3 years.....depending on how bad this
recession ends up being.

During the last 2008 recession I was reading a book on real estate investing and read where in the great depression there were apartment units for sale in New York City for $100 each and people didn't even have $100 then to buy them.

[john3232]

I like this gent's videos. He gives a pretty good snapshot of the current market.

He mentioned in another video that Opendoor has 11% of the active listings or some 1200 homes on the market.

https://www.youtube.com/watch?v=kzMZW-Lp260&t=813s

[jdahunt]

Sure people aren't listing because they would take a big hit, come 2023 when all of the layoffs hit they won't have a choice.....and trust me the layoffs are coming in a big way.