For my patrick.net fans, bought my 12th home July 24th!
2012 Jul 25, 2:33pm 38,668 views 93 comments
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I know that technically Arizona is in the United States but does it really count? No.
I know, I know, it's a dry heat.
Biff
CrazyMan
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2012 Jul 25, 4:13pm
Congrats. Building a small empire in Arizona is like winning the special Olympics.
That's a really good one, congrats.
Are you handling all 12 rentals by yourself (leases, taxes/paperwork, maintenance)? That sounds like a substantial commitment, unless you can get help from family or use a management company.
Maybe if you own enough rentals you can 1. buy a sports car 2. upgrade girlfriends from a retriever to a human.
Of course the chicks running around in that hell hole must be something else.
I guess it could be worse, you could be in Nogales, Juarez, Victoria, Monterrey Mex.
Goran_K
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2012 Jul 26, 12:12am
upgrade girlfriends from a retriever to a human.
I don't usually like to engage in the mud slinging, but this got a chuckle out of me.
David9
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2012 Jul 26, 1:56am
Congradulations Roberto.
85K is a reasonable price for a property in a good location. I paid 91k for a city property in Dallas.
In my opinion, the closest similiarity to the Phoenix market here in Southern California is San Bernardino / Riverside and Long Beach.
Although, mulit units sell quickly anywhere.
Congrats! I'd like to build an portfolio of 10+ properties. Stuck on 4 right now and am not finding the deals I used to in the location that I'm used to investing.
PockyClipsNow
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2012 Jul 26, 2:33am
I guess this is what the bottom looks like - investors buying up everything they can for cash since prices are at/below rental parity. Of course its a government manufactured frankenstein 'bottom' but it is what it is.
If prices keep going up Roberto can sell all 12 properties for twice what he paid, wait for crash, repeat.
bmwman91
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2012 Jul 26, 2:49am
Hey Roberto, where do you get the cash from to do this? Do you accumulate the rental income, which does sound like it is quite positive, and then reinvest it into more properties? This is more or less exactly how I played SimCity as a little kid lol...initial investment to get cash flow going, collect revenue to invest in more growth, reinvest revenue for more, etc, until cash flow is enough that I don't care anymore. I'm too much of a chicken to do it with my US Dollars though, as opposed to digital Simoleans (or whatever the currency was called in the game).
And what's with the hate posts? Yeah the guy's building a "rental empire." Apparently none of the haters want to live there anyway, so it isn't like he's preventing you from buying a house. Oh, it's people LIKE Roberto, right? Get over it, it's a capitalist system. Small investors like him are NOT the problem. The real problem is going to be the large institutional investors with the ability to rig the whole system that are trying to get their hands on the large shadow inventory for pennies on the dollar, and who will subsequently crush renters, existing home owners and small investors like Roberto.
xrpb11a
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2012 Jul 26, 2:56am
So after all the hubris, when all's said and done, you're saying Roberto's strategy is fatally flawed....
and who will subsequently crush renters, existing home owners and small investors like Roberto.
Comments 1 - 13 of 93 Next » Last » Search these comments
Yes, just three weeks after home 11, ($80K, +$9K in remodel and appliances, hoa = 100, taxes = 800 a year, insurance = 750 a year, rented for $1100) which is now rented at the predicted amount.
This one was $85k, 3/2/2 car garage in 85201. Another cash purchase short sale. It needed paint, minor fix ups, and flooring in the 3 bedrooms, plus the wild overgrown yard needed attention, and the wooden fence had fallen down. I thought I could completely remodel it in 2 days, but a few problems arose and where overcome, it looks like 4 days to completion. The reasons I particularly wanted this home, in addition to its very central location, in an area seeing tons of commercial development (among others like mesa riverview mall, is the cubs spring training facility directly adjacent,http://www.azfamily.com/news/Cubs-Mesa-spring-training-facility-finally-breaks-ground-162144835.html)
But this home had a brand new 50 year shingle roof put on in 2011, and a new ac as well, courtesy of a major hail storm. It is solid slump block too, which is my favorite construction material.
One of my local friends offered me $110,000 for it, a $20,000 profit for one week's work, but I believe in the area, and this home, so I'm going to keep it for the long haul. I'll post some pictures of the remodel tomorrow. If anyone needs a good rental in that area, contact me through my profile, $1100 a month.