Phoenix Sweet Spots

[Derek Petersen]

I wanted to post a question to all of you that know the phoenix market well. I currently own a tri in Sunnyslope; it performed moderately well considering I went through all of the tenants in the first 9 months that the PM had placed and had to evic one of three. Let's just say I'm hoping for a better year in 2014.

That being said, I would like to add several more Phoenix mf properties (2-4units) this year. Can anyone throw out some areas that have potential upside but most importantly cash flow (between the 1%-2% rule)?

Thanks

[John Miller]

Derek,

The big problem in 2 to 4 units in the phoenix market place, is that they have not build any 2 to 4 units properties in maybe the last 40 years, due to the increase of the land cost for multi-family units. All of the units are going to be in older areas. My suggestion would be to buy single family units until you have made enough money then enter into apartment units in the 25 to 50 unit range. They also will be older areas, but you will find some of them in better locations.