Property Q&A in Phoenix>Question Details

Wanting Out…, Home Owner in Phoenix, AZ

Bought a major fixer upper in Nov 2008 for $30K in old Tolleson. Literally rebuiling the property i.e.new wiring, windows, roofing, granite counters

Asked by Wanting Out Of Phoenix, Phoenix, AZ Thu Nov 25, 2010

, new tile floors thruought & carpeting throughout, new Trane 5 Ton a/c. Should I continue to fix & sell (when sales lately are in the $15K to $40K range) or just get out. No mortgage. Rebuilt or not, it doesn't look like I'll get what I've put into it back....Suggestions???? (2,000 sq ft 4 bed 2 bath & LITERALLY rebuilt. I'm open to ideas on how to make this a "bearable siutation. i REALLY DO NOT like living here ...May-Oct way too hot & it's not really great temps at night in 30's...soI really want out of Phoenix.

Help the community by answering this question:

Answers

13
Your efforts won't necessarily go to waste. Home rentals in Phoenix are doing fine, for landlords who own their properties, with no liens. The lowest price I've seen for a decent house rental in the entire area has been $750/monthly. If you use a real estate office to screen the renters, you'll have no problems. The income you receive will help give you a boost to lease or buy where you like. Hands down, if you can sit on a rental for 10-20 years before you sell, you'll make a nice ROI.
0 votes Thank Flag Link Wed Dec 8, 2010
Most people that wanna move away from Phoenix is because of the weather, so I understand that. You mentioned the house may still need some repairs, depending on whats left to repair is gonna help you decide what to do with the property. Your options are to sell to a owner-occupant, like a couple or a family, sell to an investor, rent out your home, or rent-to-own (lease option).

Sell to owner-occupant: If there are not major repairs needed, you could sell your home to a family. They will more than likely need a loan from the bank which will require an appraisal and such. So if too much work is needed or the bank cant justify the sales price, this family may not be able to get financing.

Now this is where you can offer RENT-TO-OWN: if a family cant get financing and really love the place you can be the bank and offer seller financing. You could negotiate terms with buyer.

Sell to an investor: if there are major repairs needed or you just dont want the hassle, you just want cash, you can sell to an investor. Im an investor and we can do cash deals, close quick at no cost to you.

Rent the property: you can simply rent out the place, but you would have to manage it from a distance or hire a property management company to do it for you. This is a great options if youre looking for monthly payments.

Take youre time and decide whats best for you. If youre interested in sell to an investor, contact me. I can go over the numbers with you and explain your options in greater details.

thanks,

Joshua Jones
SunState Investments, LLC
602-456-0242
0 votes Thank Flag Link Wed Dec 1, 2010
Hello, Julie Baris here, Keller Williams Arizona Realty. My suggestion is to get comps and find out what that property of yours is actually worth and then you can decide if you want to sell it. Obviously, you can rent it out but if you really want to get out of Phoenix, why rent it out if you can sell it? Not everyone wants to be a landlord, especially in a town they want to leave! You can email me at jbaris@cox.net and we can go from there. I hope this is helpful. I truly believe when making any decision, go with what you truly want first, and then if it doesn't pan out, you explore the options. So sell if you can. Hope this has been helpful, happy Sunday!
Web Reference: http://www.JulieBaris.com
0 votes Thank Flag Link Sun Nov 28, 2010
You failed to answer the key piece of information if you want someone to assess your situation. What have you actually put into this place? I often buy destroyed houses for 40K in Phoenix and spend 30-40K fixing them up and sell them for 120K-130K. These are all usually homes that are way larger than most in the neighborhood. I will sell one of these fixed up houses for 120K when there is one for sale across the street for 50K.

I do make sure to save as much as possible on the renovation and do high quality work. It sounds like you have done high quality work.
I own one place in Tolleson but in a newer SD. However, an almost new 2000 sq ft house should go for at least $40/sq ft unless it's in a really bad location.
0 votes Thank Flag Link Thu Nov 25, 2010
If the property is at or near ready to occupy, I would make sure that it will pass inspection and rent it out under section 8. Section 8 pays $1,495/mo. for a 4 bedroom in that area. I know, I've done it.
Makes for a very nice return on your investment.
You can then sell on revenues which is substantially more than residential single family.
Dan
0 votes Thank Flag Link Thu Nov 25, 2010
I agree with Jason at OneProp Management. Our investors use him and his company is terrific. Why not have a cash flow coming in? If the home is in good condition you can even squeeze out a little more rent. The best thing to do is have him come by and he'll be able to advise you if anything else needs to be done. The way to create wealth is to own real estate and create passive income for your later years. That's what we do for our investors and why not start now with this home you don't want to live in?
Good Luck,
Lorrie Feld
Feld-Kaminsky Group
Keller Williams Integrity First
lfeld@azrealtygroup.com
0 votes Thank Flag Link Thu Nov 25, 2010
How much more do you need to do to get the property where you could rent it out or sell on contract. These would be your best bet, but you didn't mention how much more money you would have to put into the home and what items still need to be taken care of. If you rent it you would need to have a completed functioning home. If you sell the home you may be able to sell in its current condition to someone with cash if it still needs items done that a loan may require.
0 votes Thank Flag Link Thu Nov 25, 2010
As it has been noted renting the property out may be a viable solution at this time. We are still experiencing a high level of family being displaced by foreclosure (both owners and renters alike). While there is no shortage of rental inventory, well presented home are renring quickly in today's market. Well presented and priced renral properties are typically rented with in a couple weeks.
There is always more than one way to skin a cat, so don't let
It go without a fight. We can discuss the final requirements to make rent ready, evaluate current inventory and rent point and get out on the market. Best of luck.
Web Reference: http://ONEpropPHX.com
0 votes Thank Flag Link Thu Nov 25, 2010
I suggest the lease to own approach in this area (Contract for Deed). I have a few buyers looking in Tolleson. They have a down payment but can't qualify for a loan because they are self employed. You may be able to earn 8-10% interest on the balance. Contact me if you want to pursue this further.

Loren Hoboy
lhoboy@arizona-dream-homes.com
623-688-0044
0 votes Thank Flag Link Thu Nov 25, 2010
I'm sorry to hear about your situation, your timing may have hurt you on this investment but I think you can turn this positive. I've sold REO's for the banks in that area are they are tough to sell much above 30-40K. However, TONS of families are loosing their homes in that area and are looking for a good rental property. Many of these folks still have jobs and income it's just that they were $100,000+ upside down on their home and chose to walk away. Also, many of these families will are happy to sign a 2-3 year lease while they build their credit back up. So if you don't mind being a landlord that would be my suggestion. If you plan on moving out of state I would hire a good property manager. I have a friend at Arrow PM Damon: 480-577-5187 try him and call a couple others. Good Luck and Happy Thanksgiving!
0 votes Thank Flag Link Thu Nov 25, 2010
Thought about renting it out? If it's "over improved" for the area, you'll likely never recapture what you put into it.
0 votes Thank Flag Link Thu Nov 25, 2010
Is renting it out until prices go up a good option? I have a property manager who is great.
0 votes Thank Flag Link Thu Nov 25, 2010
Never get emotionally attached to a property. If you do not like living there, move. I doubt the home as described is only worth 30 to 40K. If you contact me via email, I will run the comps and email them to you.
Web Reference: http://www.gergurroz.com
0 votes Thank Flag Link Thu Nov 25, 2010
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer