Tag: Rent

I grew up in the typical middle-class family in America. My parents taught me to work hard and dream big. Under their guidance, I graduated from college and then law school – even though doctors predicted I would never be able to complete high school due to my physical disability. I am not your traditional realtor, but in today’s real estate market, you need someone who is sophisticated to help you with the biggest investment of your life.

Investing in Your Future

Being the father of 3 children, I find myself being more of a teacher than anything else. I try to show them through the game of chess that every move they make has a direct impact on their future moves. Investing in real estate is a lot like the game of chess. The moves you make today have a direct impact on your financial future.

I really try to impress upon our millennial clients the importance of leverage and the term ROI (Return on Investment). Our millennial clients are some of the hardest working people I have met. They also do not want to be confined to a desk job working 8-5, M-F. Typically, millennials are not interested in purchasing single-family housing. They would rather rent or live at home to save money to buy their first home that is not the typical starter home. I stress to them why that is a big mistake – especially here in Phoenix.

Apartment rents climbed faster in metro Phoenix than anywhere in the U.S. during the past year. Reagor, Catherine. (2019, March 22). “Apartment rents climb faster in metro Phoenix than anywhere in the U.S.” The Arizona Republic. Retrieved from http://www.azcentral.com. With the current average lease in the Valley sitting at $1,637, according to ARMLS, renters are feeling the squeeze and are being forced to add roommates to help offset the rising costs of rent. Conventional wisdom would have you believe that is the correct thing to do. However, all you are doing is living with some slob you don’t like and making your landlord rich. Are you one of those renters feeling the squeeze? Here’s how to get out of the trap.

Say Bye to Roommates and Buy Investment Properties

Suppose you are one of those renters that pays roughly $1,600 a month in rent. That’s the equivalent of a property with a mortgage of roughly $300,000. As current mortgage rates continue to drop, your buying power strengthens providing you with more bang for your buck.

The first thing I hear out of a first-time buyer or millennial’s mouth is “I will not qualify for a mortgage.” Think again! With a FICO score of only 580, you can put just 3.5% down, FHA financing, to buy a duplex, triplex, or fourplex provided you make it your primary residence for one year. Simply stay in one of the units for a year while renting the other(s) out – keep in mind the average rent in metro Phoenix is $1,637 and your mortgage for a $300,000 investment property would be around $1,500 – and start earning some income off your investment. You could literally live there for free!

We all hear about these real estate tycoons who purchase an apartment building or buy a group of 10 investment properties and think they must be lucky. The truth is most of them started out by purchasing one investment property at a time and leveraging it to increase their real estate worth.

When you study the last seven recessions only one had an impact on the real estate economy. Investing in real estate is generally one of the safest investments you can make. Stop throwing your money away by renting! Let us help you build wealth through real estate cash flow. Contact Dylan Nolle at 602-750-7913 or Maria Nolle at 480-221-7847 today and start enjoying safe returns on your investment for decades.