I have four listings in the hopper, and the whole first quarter looks strong. So far, I am unable to rid myself of the NAR, but I’ll be working on the problem as I go. I don’t need ARMLS for rentals – Zillow alone is better for us – and I may move to the supply side to ditch my blood-thirsty familiar.
Meanwhile, here is our year-end wrap-up for our rental-home investors:
To our investors:
Well. That was new.
I know this is not the case everywhere, but Phoenix has weathered the virus fairly well. We didn’t go overboard on restrictions, so the economy has fared well. Meanwhile, we are importing people from all over the country, so rents are great and resale is insane. Assuming the Republic does not fall apart, I expect those trends to continue in the near term.
In our own little world, we had a normal year. I drove less, but everything else was nominal: Easy turnovers and quick rentals, with no failures to pay from our residents. We sold one rental property: We listed at $280k, $5k above where I saw it selling. Instead we got $290k, all cash, no repairs – with almost no prep work to begin with.
That’s cool, but it won’t last. If we had a national real estate market, I would say we are at or near the top of it. But since values in Phoenix rise as they drop elsewhere, I have no idea where our market will turn. The bellwethers would be builders abating demand and lenders raising interest rates.
The other factor to consider is simply volatility – a subject that should never come up in real estate. It may behoove you to consider banking the win now if you have a way – ideally tax-deferred – to move the money into a safer investment.
Meanwhile, we press on regardless: Rents will be steadily higher until demand subsides. Eventually we will pay for this year’s spending, but the sun is likely to shine on Phoenix that way, as well.
We are beyond delighted to work with you, and we are looking forward to another great year.
With best wishes for the happiest of holidays and health, wealth and joy in the New Year,
Greg
