Suggestion for Rental Properties around Phoenix, AZ

[Nithin Kumar]

New to Phoenix and hearing a lot of places for rental investments but trying to figure out from the pro's around to find what are the areas that can break-even on a monthly basis and the areas that can show appreciation in the nearer term. planning to put down payment of 30% (~100k)

[Josh Young]

Quote from @Vijendar Na:

@Josh Young - Are there opportunities to buy new builds for investors? Whats your opinion on Mesa? Do you generally buy new build or old homes for rental purposes

 Not all new build communities sell to investors, but some/most do. Things to consider when buying a new build are appliances, fans, blinds, and back yard landscaping; sometimes we can get appliances included, it just depends on the situation. Back yard landscaping is usually the biggest expense at $5-6k for artificial turf and rock, but doing this sets you apart from the others. The best thing about a new build is the capital expenses and maintenance and repairs will be minimal for many years.  

Mesa is a big area and can vary a lot depending on the neighborhood. I personally wouldn't buy an old home as a rental, I only buy 1980 or newer for myself, all of my properties are in the north part of Gilbert built between 1985-2003. I buy homes as a primary residence with 5% down and move into them keeping my previous as a rental and the area that I live doesn't have new builds that would work for us, otherwise I would buy a new build. 

If I had $100k to buy an investment property and wanted at least break even on cash flow I would buy a new build in Casa Grande. If I didn't mind being a little negative on cash flow then I would buy in Gilbert. The cash flow that you need to achieve should be based off the rest of your portfolio and your financial situation as a whole. I personally focus more on appreciation, but if I wanted more cash flow I would definitely go to a fringe area and buy a new build rather than going to an older area and buying a cheaper property.