I’m not planning on government control of all property. Most people aren’t either, since there are no “fire sales” on real estate now.
If you want raw land. I own 2% of 40 acres in the Bakersfield city limits. In 2005 my portion was worth $300k. I will sell to you today for $100k. It is subdivided into 240 lots. So I own about 5 lots. $20k each. A deal…
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No thank you.
My point exactly
One would assume that contractor pricing would be significantly less than two months ago.
Tell us how it works out for you. But people that have their own remodeling skills will dominate the flipping business as they always have.
What percent of flippers are actually multi-talented to do the renovations themselves? Not many.
Well how do you know? Obviously you don’t. But even if you hire people you need to know how things are done or they will rip you off and do crappy work. A leader should always know how to do the work of his crew.
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Only going by anecdotal evidence from observation. Never see the actual owner/flipper doing the renovations himself/herself. I see people in unmarked vehicles who I assume are unlicensed doing the work.
Start small and learn. It is actually a lot of fun. Or get to know and trust a flipper and provide the funding in a joint venture. But just going out and hiring an unsupervised GC is a recipe for an expensive disaster. Management is key like in any business. Along with time and cost control. Flipping has to be done quickly and as cheaply as possible.
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Difficult to disagree with your comments, although there are a plethora of seasonal/vacation rentals in Scottsdale. I’m sure some were purchased already renovated and the investors are counting more on long term appreciation vs being a profitable rental.
Watch this instead.
https://finance.yahoo.com/news/berkshire-hathaway-annual-shareholder-meeting-2020-212653419.html
I would do my own calculation. Go to Airbnb or a similar website. Find a daily rate. Assume you will only rent it for half of the year as a vacation rental. From the average rate, calculate the yearly rental.
I am not sure I will count on too much of appreciation in the phoenix market though I must say it was very good in the last 5 years.
My real estate curse has always been that I can only be happy in places that don’t appreciate. Every property I have ever owned has been rural - outskirts of Fremont up a hill in Niles canyon, La Honda and now rural AZ. The only reason the Fremont and La Honda properties made money was dumb luck. Bought in 02, sold in 07 right before the crash, bought again in 2012 and sold in 2018. The guy I bought my La Honda home from held 22 years - in San Mateo Co. - and lost money when all costs were factored in. Bad market timing. Never landlorded. I know too many people who had stressful, expensive people problems over it.
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I have done well in Phoenix. I was told by professionals to avoid it for the last 30 years.
Too easy to build, no barriers to entry. Builders are always building new products that will make your house look tired and dated.
I invested in a development in Chandler. Sold last year. Doubled my small percentage in 3 years. Then I reinvested that money in another large MF development there. Hopefully by the time it’s complete next year we will be near normal. Outside of CA I prefer to invest in development with large developers. Much higher IRR than buy and hold and avoid the trap that many CA investors (used to high appreciation) make. Most places are all about cash flow and cap rates, not appreciation. Go for value add. That means building new or remodeling. Both very hard to do if you don’t live there.
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Owners are selling short term rental properties in metro Phoenix.
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This is going to crash the rest of the housing market in Phoenix Metro. I have a feeling deals will become available in a year or two.
I agree. I’m surprised the seller of the house in my OP hasn’t lowered the price since listing it 48 days ago.
The Phoenix Metro has been one of the heavily marketed to the real estate investors across the USA. Do you have an idea what percent of the homes in Phoenix Metro are not owner occupied? It is going to be hit harder than other markets like Bay Area. Austin might go through same though I doubt it is as touristy as Phoenix given the Grand Canyon in the proximity of Phoenix.
I don’t know what percent of homes in metro Phoenix are not owner occupied. I do know that metro Phoenix is one of the fastest growing areas, population wise, in the United States.