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 · Scottsdale, AZ · Member since 2010 · 390 posts · 599 votes
12y
@Mark Whittlesey Try Diana at Washington Federal 480-633-5547. Let her know Serge sent you:)
@Kirsten Walstedt Pinal County consists of Florence, Coolidge, Casa Grande, AZ City and Eloy as the main cities. The demographics favor Casa Grande and Florence. Both these cities have a stable job base. Casa Grande is growing rapidly with a lot of development in the works. There has been little to no new supply of housing in the county and population is back to growing around 1.5% a year. The lowest priced housing can be found in Coolidge, Eloy and AZ City but I generally avoid those cities as I'm not very fond of the tenant or employment base in either of those cities. Best of luck!
Real Estate Agent · Chandler, AZ · Member since 2014 · 15 posts · 4 votes
12y
Anyone available Friday June 6th for a quick get together in the East Valley? Maybe around one of the Freeways for ease of access. There is a large Paradise Bakery at the 101 and Ray Rd in Chandler; an "It's a Grind" coffee house at E. Baseline near McQueen; Coffee Rush at Baseline & Gilbert Rd; and probably a Starbucks or two somewhere!!
Real Estate Agent · Chandler, AZ · Member since 2014 · 15 posts · 4 votes
12y
I just read an article that said, according to RealTrac, Phoenix had the 2nd highest number of home flips in the nation between April 2013 and March 2014! There definition of a flip is a house that is bought and sold within a year, and at a profit. They said there were 4,632 flips during that period in Maricopa County, at an average profit of 31.42% and an average original purchase price of $172,547.
Real Estate Investor · Phoenix, AZ · Member since 2013 · 111 posts · 76 votes
12y
I wholesale properties in the Phoenix metro area. I've been wholesaling here for about 2 yrs. I market directly to homeowners via direct mail, so all properties I lock up are off-market - not listed on the MLS. I have been able to find and lock up discount properties pretty consistently and pass them along to my cash buyers. However, the last couple months it has become more difficult. Seems like there are A LOT of other wholesalers/ investors out there doing the same thing which is running up the off-market prices ;-) Nevertheless, there are still deals out there.. Just gotta know where to find them and be creative. I could always use more cash buyers, so if you're looking for discount Phoenix properties (buy n hold or fix n flip), let me know. I am also interested in a Phx meet-up as well!
Queen Creek, AZ · Member since 2014 · 2k+ posts · 1k+ votes
12y
@?
@Mark Whittlesey are you seeing your tenants start to qualify for mortgages again and losing them as they become home buyers? What do so see as the driver of your turnover?
No. I dont think so. I think there are a variety of factors. But all tenants were and are long term renters.
With one, the neighborhood changed (worsened) and he no longer wanted to rent there.
One lost her job and ended up having to downsize.
One was dis-satisfied with the pest control I provided (I really did try to work with her on it but spraying every single month was simply not an option.) And I think cost/divorce was also an issue.
Investor · Chandler, AZ · Member since 2012 · 69 posts · 55 votes
11y
The Phoenix market has definitely become chilly. I have not been able to find deals on the MLS without 11 other offers on the same property, which just drives the prices up to the point of more risk. Foreclosure have all but dried up as well and the same investors are fighting for these like dogs over a bone (thus no meat left). I generally have flipped in the past, but ended up with 3 rental properties pushing my numbers to try and compete. I have been direct mailing, but I think sellers on these lists are definitely being bombarded by a lot of investors out there as calls have been random at best and in areas I don't care to invest in. I have also been tempted to go out of state, but like others the horror stories generally outnumber the successes. Thus, everyone marketing to out of state owners right now. I have seen other investors that used to run 10 employee crews have to cut back to a two man operation as deals are extremely hard to find here and a lot of competition. It appears the glory day of old are over and we are back to trench warfare that weed out the weak and weary looking for the "get rich quick" end game. Investing now will actually take some hard work and a lot of stamina to grow wealth longer term.
I am also interested in a meet up here in the East Valley if one is put together as iron sharpens iron for the long haul and two or more heads are always better than just one. Best of luck to all.
Wholesaler · Scottsdale, AZ · Member since 2014 · 227 posts · 93 votes
11y
Chilly? Never heard of a hot market referred to as chilly.
It's not as bad as you make it out, you just need consistency and a bit of know how. Networking with other investors is definitely a good idea though. Our network is our lifeblood and we swap deals with other wholesalers regularly.
The Phoenix market has definitely become chilly. I have not been able to find deals on the MLS without 11 other offers on the same property, which just drives the prices up to the point of more risk. Foreclosure have all but dried up as well and the same investors are fighting for these like dogs over a bone (thus no meat left). I generally have flipped in the past, but ended up with 3 rental properties pushing my numbers to try and compete. I have been direct mailing, but I think sellers on these lists are definitely being bombarded by a lot of investors out there as calls have been random at best and in areas I don't care to invest in. I have also been tempted to go out of state, but like others the horror stories generally outnumber the successes. Thus, everyone marketing to out of state owners right now. I have seen other investors that used to run 10 employee crews have to cut back to a two man operation as deals are extremely hard to find here and a lot of competition. It appears the glory day of old are over and we are back to trench warfare that weed out the weak and weary looking for the "get rich quick" end game. Investing now will actually take some hard work and a lot of stamina to grow wealth longer term.
I am also interested in a meet up here in the East Valley if one is put together as iron sharpens iron for the long haul and two or more heads are always better than just one. Best of luck to all.
You just need to be more consistent with your marketing strategy, and creative! There's deals in every market, you just have to start digging.
Avondale, AZ · Member since 2015 · 2 posts · 1 vote
11y
I just moved from Avondale, wife was stationed at Luke. I am a contractor in Afghan now. I have been looking for multi family units in Phx and surrounding areas. I have seen some decent deals, Im pretty new to investing, so Im not sure what prices used to look like. My only other property is a SFH in San Antonio, Tx. I have been looking at some listings on the MLS, I see some pretty decent prospects.
I'm one of the other 11 making offers in the east valley :)
I agree that the bidding has become more competitive, to the point where sometimes: purchase price plus fix up = no longer a good deal
I've looked out of state for better returns but have yet to dive in.
So far my furthest purchase has been in Tucson. There are some good deals there but the rents are lower and the pace is a bit slower. Even a few aggravating issues such as needing to go to the city of Tucson planing and zoning dept to have the electricity turned on. No fun driving two hours and then waiting in line all because credit cards are not accepted over the phone and no checks by mail.
I too am interested in an east valley meet-up. Perhaps it is time for condo conversions again.
Las Vegas, NV · Member since 2015 · 22 posts · 1 vote
11y
Just stumbled across this kinda dated thread and reading thru all 4 pages, some seems to be still optimistic but some are complaining about lack of investment opportunities.
But what are the market/acceptable cap rate for SFH and MF in Phoenix and surrounding areas? Anybody care to share?
@Carole G. We paid mid- to upper- 100,000s for our first one over 2 years ago, and mid-200,000s for the second one last year. They are in southern Scottsdale (which is not as nice as north Scottsdale), but not in the neighborhood called Holiday Park (which is an area I would never buy in). They have been very profitable for us, with the exception of a recent major sewer line issue we had on one of them.
Kimberly T
Why would you not buy in Holiday Park? Is it the tenant class you want to avoid? There seem to be some attractive properties in the area, plus low crime and decent schools.
Phoenix, AZ · Member since 2015 · 22 posts · 1 vote
10y
What is considered a good deal on a 4plex in Phoenix? Would 150k to 200k be reasonable? i know it all depends on the area and whether the property is in good shape or not...