Funny you should ask…. her house is for rent again, and I copied her Phoenix phone number off the For Rent sign.
She is high as a kite in Phoenix. Despite the soaring inventory and dropping prices, she is doing very well flipping properties. I was going to make a thread about this, because I am so amazed, and don’t see how this can last.
First, her Poway rental is attracting 3 calls/week, for $2500/month, well in excess of her mortgage and HELOC. So she is going to be cash flow positive on that one.
Second, they bought a foreclosure which they flipped at a $30K profit, and her husband just bought another one. He will spend $40K and sell it at a $60K profit in a few months. I wonder if they will chase the market down, or if they are really savvy and have figured out how to make money in a declining market, just like Chris J makes money on some days when the stock market is up, even though the general trend is down. Perhaps this friend finds a few gems that are a bargain.
I asked her how the housing market is, and she said “very good”. Her cousin sells high end homes, and the market is hot, she said. Now I know that the high end market is still holding up well.
I am flabbergasted by her experience, and I have no clue how they pulled this off so far. My guess is the house they are fixing up might be worth $380K in today’s market, but by the time he is done fixing it up and lists it, it will be worth only $330K, and his profit is gone. I will check back with her later this year. She said we should keep in touch.
She asked me, “Have you bought another house yet”? She doesn’t get it… but her perspective is so different from mine.
On a related note, my neighbor made 3x her money in Yuma, AZ investment property, and is putting money into another deal: a commercial plot, which should increase in value after the oil company deal in Yuma goes through. I will check this out further and start a thread. Do any of you know about the potential for this?
