Team with MORE has helped clients for over 20 years successfully invest in
residential real estate across Arizona. Whether you’re hoping to invest in your
dream home, looking for a second home, doing a fix and flip, or purchasing
rental properties, our team has the broad knowledge, skills, and attention to
detail to help you make the best real estate investment decisions. Because of
our partnership with Russ Lyon Sotheby’s International Realty, we have access
to the most prestigious network of real estate professionals to ensure your investments are done with excellence. Because your real estate investment is one of your most important assets, we've included some useful information to help you make the best decisions.
1. Second Home
A second home can be a great lifestyle investment, especially if you plan on spending time there on vacation with family and friends or just using it to get away. A second home in Arizona is a great way to escape winter if you live in one of those colder states that gets a lot of snow. If you’re looking to invest in a second home, here are some helpful tips to think about:
Make sure you have cash reserves.
According to Fannie Mae, you can finance up to 90% of your second home if it isn’t used as a rental property. If it is a rental property, lenders may require a 15-20% down payment to mitigate their risk.
Good credit matters.
Because a second home increases the amount of debt you have to your equity, lenders want to make sure your credit is good. Having a lower credit score will most likely increase the amount of your down payment.
2. Rental Property
If you have a second home, renting it out for more than 14 days in the year qualifies it as a rental property. This can be a very lucrative investment, especially in destinations that get a lot of tourists. If buying a rental property is your investment choice, make sure to know the following:
You’re required to report your rental income on your taxes.
Rental income must be added to your overall income, which increases your tax liability. However, you can also deduct any necessary expenses like home repairs needed during the rental period.
Make sure to be ready for the expenses of maintenance.
Renters invariably do some wear and tear on your investment, so making sure you plan accordingly for that as part of the rent or any deposits. Short-term rentals like vacation rentals may have less wear and tear with shorter stays, but you still need to make sure to account for other expenses like house cleaning and yard care.
3. Fix and Flips
Finding a home to renovate and sell (known as a fix and flip) can be a great real estate investment opportunity. Here are some thoughts to help you take a leap into your project:
Make sure you have a real estate partner who has experience with fix and flips.
An agent who is close to the market with data can guide you along the process and ensure you identify a property that has enough upside potential for a good return on your investment.
Ensure that you either have the renovation skills yourself or know good partners that are trusted to do quality work.
Again, an experienced agent can help you navigate the pitfalls of renovating by connecting you with trusted contractors and vendors that can deliver you the quality you need within your budget.
Financing is critical, especially if there are any delays in the project.
Make sure to work with lenders that have a lot of experience with fix and flip investments. They will be more equipped to provide you options that foresee the possible challenges that come with this type of investment.
Investing in land can bring great benefits as land can dramatically appreciate in value over time. Here are some things to know about land investments:
Big Ticket Item
Land is a big-ticket item, so having financing in place is critical. It’s also important to understand that loan interest expense for land is not tax-deductible like it is for a primary residence.
Land is not very liquid, so it may not be a good choice if you require immediate cash flow from your investment like those received from purchasing a rental property.
If you are purchasing land for development, consider what potential uses for which the land is zoned. Can you build residential or does it need to be used for commercial properties? If you do decide to build, make sure to understand what access your land has to water, sewer, and other utilities and services.
Investors looking for more immediate cash-flow may be interested in multi-family properties like duplexes and apartments that have the potential for more tenants:
If you are considering investing in multi-family units, know that it typically requires more up-front financing if they are larger properties.
Lending and Management
Despite a larger investment, lenders are more open to approving loans depending on the renter income profile. Having multiple renters reduces the risk of having to depend on one renter for generating cash flow.
If you are investing in a larger unit, it requires an extra level of care and maintenance. Property management companies are a great solution if you don’t plan on doing it yourself. Furthermore, if your property is large enough, your rental income would most likely offset the extra management costs.
6. Community Information
Before you search for your dream investment, make sure you know more about the various communities and neighborhoods:
Doing your homework about all the important facts of a community will help you have more confidence in investing in the area. Safety, education, traffic, and many other factors are important to know.
7. Market Data
Sign up for our up-to-date Quick Market Minute emails to give you the in-depth data and insights you need to make the best real estate investment decisions.
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Reasons to Choose The Team with MORE
Here are 10 things our team does to provide you confidence when selling your home.
With a team of full-time agents working for you, someone is always available to be there when you need it.
Our affiliation with Russ Lyon Sotheby’s International Realty provides exposure to a worldwide network of potential buyers for your home.
With more than 40 years of combined real estate experience in Arizona, we’ve seen market highs, lows, and everything in between. You can feel confident putting your real estate investment in our capable hands.
We are used to working financial equations and are not intimidated by them - in fact, we look forward to justifying why your investment is worth every penny to potential buyers, their Realtors, their lenders, and appraisers.
Our worldwide network equals more exposure for your home. We interact with Russ Lyon Sotheby’s agents, the Arizona real estate community, with our network of over 4,000 out-of-state real estate agents,and globally with Sotheby’s affiliates.
Exposure to Potential Buyers
We work in all areas of the Valley - so we can uncover buyers from many different communities.
We’ll keep you informed of everything we’re doing to get your home sold. And we’ll do everything we say we’re going to, when we say we'll do it.
We do whatever it takes—whether it’s making a bed for a last-minute showing or supplying the right contractors for a needed repair.
We will be honest with you about what it will take to get the best price and terms for your home sale.
We work with a smile on our face and a spring in our step. You’ll enjoy working with us!
Contact the Team with MORE to help make your
investment dreams a reality. Our Team has over twenty years of experience helping
people invest in real estate in the Valley of the Sun.