Rental Property Investor · Scottsdale, AZ · Member since 2010 · 390 posts · 599 votes
I'm wondering if all of you Arizona investors are still active at the moment. We have had quite a run up but things feel as though they are starting to slow down. Feels like a dangerous time to buy and cash flow is getting tight.
I have not done much of anything in Maricopa county instead concentrating on Pinal, Gila and Cochise counties. Still not easy to find deals but definitely easier than metro PHX.
Would love to hear what kind of AZ opportunities people are working on.
Rental Property Investor · Queen Creek, AZ · Member since 2013 · 368 posts · 191 votes
12y
We are still busy we recently acquired a SFR for 160k with an ARV of 240k in N PHX and we got this off the MLS. It's thinning out but off market deals are still pretty consistent.
Rental Property Investor · Omaha, NE · Member since 2014 · 2k+ posts · 3k+ votes
12y
@Serge S. I see the deals you are talking about down here near Tucson, with single family houses under 10 years old selling for between $60-$100,000 in nicer areas. What I don't see down here though is inexpensive multifamily. In fact, most of the multifamily down here seems overpriced in my opinion, and better deals can be had in the Phoenix area. Keep in mind I am looking at primarily small multifamily (2-4 units). I ended up buying a 4 plex in the Phoenix area because almost nothing I could find down here would show cash flow other than trailer parks.
Rental Property Investor · Scottsdale, AZ · Member since 2010 · 390 posts · 599 votes
12y
@tony g
Agreed! Not much in the way of multifamily and that segment is overpriced in my opinion.
@Justin S. and everyone else interested in an east valley meetup ... lets do it!
I am flexible and can do mid day Wed of Fri next week. I know these things are really hard to schedule with everyone's conflicting schedules but lets just pick a time and date and do it. So I will throw it out there ... how about 12 PM next Wed 3-19-2014 at the Starbucks on Gilbert and 202 3765 S Gilbert Rd, Gilbert, AZ?
Just throwing that out there, even if we can get 3-5 people it would be great.
I am a Realtor and Property Manager in the West Valley however I would be interested in a meet up. I'm considering a move to the East Valley so meeting people over on that side could be beneficial to me :-) Next Weds works for me.
Homeowner · Phoenix, AZ · Member since 2011 · 14 posts · 6 votes
12y
@Serge S. I may have to just duck in for a few minutes, but I would love to meet people in the area and could do the Wednesday Starbucks without a problem.
Rental Property Investor · Phoenix, AZ · Member since 2014 · 71 posts · 20 votes
12y
We are seeing a major uptick in multifamily and commercial markets! We have been dealing mostly with houses, but are quickly moving into multifamily also.
Investor · Provo, UT · Member since 2013 · 37 posts · 18 votes
12y
I'm in contract to sell a property in San Jose, CA where the market is at an all time high for some areas. My plan was to reinvest in a few SFRs in the Phoenix area (maybe Gilbert or Chandler). My investment requirements were something in the $150K to $200K that meets the 50% rule. Do you think I can find properties off the MLS (working with a realtor) to meet these terms? Are my return requirements too low? If the market is softening down there, should I just keep making below list offers until one gets accepted? What would you do if you were me?
I've been worried about the run up in prices the past two years but my thinking was that the low interest rates now still justify the investment if I am holding for the long-term.
Rental Property Investor · Scottsdale, AZ · Member since 2010 · 390 posts · 599 votes
12y
@Toby Johnston $150k-$200k in Chandler or Gilbert will buy you a newer 1990s-2000s sfr most likely 3bd with a little bit of rehab. It will rent for $1000-$1500 max. Not sure if you meant the 2% rule rather than the 50% rule but it will not come close to the 2% rule. Your realistic yields will be around 5% if you leverage. Probably better than the bay area but nothing to write home about. 2% rule homes are all but gone even if your looking at class C-D warzones which I would not consider if I were out of state. PM me if your looking for more specific local information. I work the east valley and am pretty in tune to our market.
Investor · Provo, UT · Member since 2013 · 37 posts · 18 votes
12y
@Serge S. I was actually just referring to the 50% rule, meaning that I want my monthly mortgage payment (just the principal and interest) to be 50% or less than my monthly rent. Regardless of any rules of thumb, are you still down on this market given a 15 to 30 year holding period and today's interest rates?
Queen Creek, AZ · Member since 2014 · 2k+ posts · 1k+ votes
12y
I think you will have a tough time hitting your 50% rule. Payment on a 150k loan at 4.125 is $1,066 and @Serge S. is right on the top end of the rent range being $1,500 (and that is much more likely at the 200k price point). And that is only the mortgage, most properties in Chandler and Gilbert have HOA fees at $60 a month and then there are taxes insurance and maintenance too.
If you put half down you might gelt close the 50% goal if you buy right.
@Bob E. is right on. It really depends on your goals. If your looking for a safe long term retirement play type of investment I think you can't go wrong with the demographics of Gilbert or Chandler. At those prices your purchasing near rebuild cost in a location that is growing, has high median income and strong rental demand. Population growth and inflation will take care of you long run and you will have quality tenants and easy management. What you won't have is cash flow.For that you will need to look outside of Maricopa county. I like Pinal county and there is still opportunity there but you really need to know the neighborhoods. Otherwise, Maricopa county is no different than Stockton, Pittsburg, Antioch, Richmond. Might as well stay in the Bay for similar returns. The time for great cash flow has passed the East Valley and I would not come this way looking for cash flow.
Rental Property Investor · Oakland, CA · Member since 2011 · 3k+ posts · 2k+ votes
12y
@Toby Johnston , you can get the "1% rule" in the East Bay. But actually, I've just seen you around the site a bit, and wanted to say hello from the Bay! I host monthly meetups in the East Bay, and some others I know on the site will be hosting meetups in the South Bay and San Francisco. I'm also organizing a Massive RE Investing Summit in the SF Bay Area in October if you're interested.. Hope to see you around more!
Scottsdale, AZ · Member since 2014 · 48 posts · 12 votes
12y
@Serge S. Hey Serge, what 's hot in Pinal if you don't mind my asking? I'm nowhere near ready to settle into cashflow and anything outside Phoenix and Scottsdale is outside my comfort zone for the forseeable future. But I am curious about areas that other people are doing well in. I've only lived out here two years so I don't know anything about Pinal County. Outside Maricopa County, I've been to Sedona and St. Johns (the latter was 25 years ago.)