Roof Top Times Vol 5 Issue 5 Page1 WWW'Rooftopinvestment'com

1
Roof Top Times Vol 5 Issue 5 Page1
WWW.Rooftopinvestment.com
How do you put a value on real estate today? Wow
what a loaded question? Ive been studying this
analysis for years. Ive heard its a great
market to buy in? Why is that and is it true? I
think you have a yes and no answer in today's
market. Values a noticeably going down in
Phoenix, mostly because of two or three factors.
1. Almost all homes today being sold seem to be
foreclosures making the bottom of the market
questionable. 2. Lenders are running scared and
seem to be cutting only the programs clients need
or want. Refinancing income properties in
Phoenix is next to impossible. 3. A lot of
investors money have went into the oil market.
All that being said still doesnt tell you
the value in Phoenix. I got tired of waiting and
looked elsewhere. Ive interviewed and talked to
a lot of landlord in Phoenix. The cash flow is
almost always even or negative. I personally have
7 in phoenix and do cash flow a little over a
1,000 a month. I started buying in Ohio
and the Midwest. I now have over 3,000 a month
in income. So what is the difference in the
properties from state to state? Basically the
price..I cant really believe the cost of homes
there. In some cases there 5-7 times less.
Buying 2 homes in Ohio for 38,000 is that to
good to be true or what? Those are great prices
but how do I know the future Value? Back to
Phoenix appraisals and sales price hardly ever
match up. I had a home I listed for a lady in
north Scottsdale that was appraised at over
500,000. I couldnt even get 416,000 out of
it. She now has it in a short sale at 300,000.
Why the difference? Its very easy to explain
EVERYONE IS LOOKING FOR A GREAT DEAL! That being
said market prices in Phoenix are not a great
gage. I thought I would test the same
situation in Kokomo, Indiana where I had bought a
duplex for 18,000. I waited my 90 days and it
appraised for 40,000 and I got a credit line on
it. Wow thats and extra 12,000 I can invest
(80 of the value I can barrow). I havent tried
to sale it. Knowing all this tells me the
value is buying a less expensive investment
property and using the equity to buy more. Brett
Young Valley Realty
Asking 43,950 Offer 30,000 Gross Rent 1,000
Coming Soon to purchase
Asking 41,000 Offer 25,000 Gross Rent 1,200
Asking 39,900 Offer 28,000 Gross Rent 1,050
Asking 39,900 Offer 28,000 Gross Rent 1,200