If you're a first time investor, I would highly recommend you stick with an investment close to where you live. While a property manager can help you manage your investment, you still need to learn about the management process. Work with a local Realtor who can really help you understand the investment process. The hands on experience and knowledge will be invaluable to your investment success.
As a first time investor I would discourage you from starting with a 4 plex. I recommend starting with a single family home in an area that you will get a good return on your investment. You would be wise to stay out of the areas that are now becoming saturated with rentals. It is best to choose a stable & established area if this will be a long term investment for you. Although your initial purchase price may be higher than in some areas, it will save you in the long run. Areas that are heavily laden with rentals tend to stay vacant longer, have higher turn over, and decrease in rental value.
These are just some of the things that you need to consider.
Being that we do property management as well as assist investors with their purchases, we are highly invested in ensuring that you purchase a good investment. It becomes a longer term partnership that goes far beyond the close of escrow. It is just as important to us that you 1) get good rental rates 2) find quality tenants and 3) your property leases out quickly. Your success is our success!
For more information you may contact us directly at 480-998-0676. Ask for Susan Napier or Corrie Honer.
Realty Executives CorrieHoner@RealtyExecutives.com
Please free to contact me. I worked with investors looking to purchase one property; as well as, others purchasing multiple units.
My specialty is listing distressed properties (short sales) both approved by the lender and traditional short sales which provide my client base with an inventory of properties to choose. I also can provide property management. The fees will be discounted if the property is purchased through my company.
Looking forward to be of service.
Milly Sells AZ
website: millysellsaz. com
I can help you and offer a generous commission rebate on the purchase.....can hook you up with a good management company.
When I first responded, I was thinking you would start with single family residences. Since you specify multi-family, you will want to decide on the general income level of your prospective tenants and their demographics (ie who are your target tenants). Rental rates and unit purchase costs are driven by location. Generally the higher the risk, the higher return your will need to bee. Start by defining your purchase budget. Talk to your new real estate agent to explore options for consideration. Decide whether you will pay all cash or plan to leverage the purchase with a loan. Consult with your tax adviser on investment strategies you might want to follow based on your other income. Consider your exit strategy (selling in 5 years, 10 years, never, etc). Armed with these answers you are ready to look at property.
Multi-family prices per door have been on the rise over the last 6 months. The better units, those with tenants that have leases and are move in ready, don't last long. Other units are available that need upgrades or remodeling before they will yield a good return. Unlike houses, not all multi-family units are listed on MLS so have your agent feed information from various sources. There is also the possibility of buying a number of townhouse units in the same complex and renting them out instead of buying one 4-plex. Just something to think about.
Don't forget to comply with registration and tax local laws. See http://www.arizona-dream-homes.com/ArizonaInvestorHelp.html
If you haven't yet, you should also consider how you will hold title to minimize personal exposure. Talk to your lawyer.
Here are some options: http://www.arizona-dream-homes.com/CanadiansHoldingUSTitle.html to consider.
Team Gerchick specializes in investment properties, we actually have an investor seminar this weekend that might be of interest to you if it's not already filled. There's much background and information needed when your trying to invest in a new area. I would highly suggest this seminar or an upcoming one, for anyone new to the Phoenix RE market. That way you can meet and ask property management, home inspectors, CPA, or Attorney questions from the various speakers, getting a better idea of everything involved. The Saturday session is filled with information for the most savvy investor to someone new just beginning their investment portfolio. Sunday we jump on a tour bus and view properties thru out the valley. Our Team also has a good supply of tenant occupied properties which many investors prefer. So whether the seminar is of interest or looking at cash flowing properties either way I feel confident our Team will be able to take care of all of your Real Estate needs.
Michele R Smylie-Clark, Sales Associate
Team Gerchick at The Robinson Group
However I agree with Michael Cheng's advice to look closer to home if you are new at this. There is a lot to learn, both before you buy the property and after, and although it's possible to leave the management to a company, you learn little that way about actually being a landlord. Also since you do not know this area, it is so easy to make a big mistake, buying in the wrong area or a property that needs too much repair or upkeep.
Definitely prices are better here (Phoeix) than Santa Clara but strongly recommend you get your feet wet locally with 1 unit, then proceed carefully to add to your real estate portfolio.
I work with new investors and provide plenty of information and advice, so please contact me when you are ready.
I work through out Central Arizona and I concentrate in the West Valley (West of the I-17) where single family residences can provide good returns on properties built after 2000. For property management I refer my clients to an experienced firm that only does property management. This has worked out especially well for my out of state clients since they property management company does not add a surcharge on repairs.
For some of my references, please see http://www.zillow.com/profile/ArizonaDreamHomes/
There are many investors in the market right now and my partner and I have been working with quite a few over the last few years. We have seen a big change in the rental market and in many of the areas it is taking longer to rent the homes out and the rental prices have gone down a bit due to the competition. If you drop me an email I will send you a really good link that will give you an analysis by zip code and advise you on the areas you should be looking into.
Keller Williams Integrity First
We lived in Santa Clara and I actually went to school there.
After being landlords for our Tempe property, we finally relocated to Tempe in 2007.
I would love to get in touch with you, and help you with your property search.
Steffy Hristova, MBA, SFR, CNE, RealtorÂ®
Tel: (480) 966-9353 Fax: (480) 247-5948
3131 E. Camelback Rd. #125
Phoenix AZ 85016
As a Realtor, and investment property owner, I can definitely help you. However, I would refer you to a company for property management.
Feel free to email me with information, specifically your price range, type of rental you are looking for (condo, house, more than 1 unit etc) and whether you are an experienced or new investor.
Prudential Arizona Properties
My name is Corrie Honer and I am a buyers agent and also work with/for a Property Manager.
We are valleywide and can offer you our expertise in several investment areas regarding what
makes for a good investment.