Phoenix Area MLS

[Rafael S.]

I'm finding that MLS properties in the Phoenix area are way over-priced relative to the rock bottom rents there (like $.70/square foot) in the sub $150k townhome/condo category I'm looking at. Granted, I use two month's vacancy in my cap rate model but it just seems like anything on the MLS is below 7% cap. Are investors really resorting to direct mail / spam / bandits to get decent deals?