My wife is accepting a position with a company in Phoenix that will require her to move to the area for about a year and help establish a new division to the company. After it is established, she will move back locally and help the company expand into our area.
Because she will be living there full time for a year, and then traveling back a few times a year, we are considering investing in a condo/townhome that we will be able to rent out after she's done with it.
My question is this. Is there a market for vacation rentals in the East Valley area? If so, best areas, and what events bring renters? Anyone here have one that is positive cash flow? I have only been to Phoenix once in my life, I just don't know the area.
What price range am I looking at for a property that would appeal to vacationers in the area. I would consider something that needs light rehab work, as I will go down there with her for the initial move, then probably spend a few days a month there.
Pre-thanks for the replies!
Sorry for the late response. We have a vacation rental in Arizona and it actually performs very well.
Check on vrbo to see what rental prices are at in Phoenix. Your biggest population of visitors will be snowbirds in the winter season, that is your bread and butter. If you get good quality pictures you can expect to have a rental filled during the off seasons with probably an average 70% vacancy at the max. You will still have people wanting to stay for various reasons throughout the "off season". It might do a little bit better than Yuma (where I am at) in the off season. Once again it just depends on how much competition you have in the area and how you price yours.
You can get an idea at my website: www.yumavacationrental.com
And vrbo: http://www.vrbo.com/507332
Let me know if you have any questions!
I don't have personal experience with vacation rentals but I can tell you that snowbirds are very plentifull in the East Valley. I'm in Chandler which is East Valley, let me know if you need boots on the ground, happy to help
Hey @Brad Starling, looking at the Valley of the Sun on airbnb, I've found that there are 697 listings, about 300 are in the East Valley. The average listing goes for $253 a night, and the vacancy rate is 58%, which is less than 62% for the rest of the Phoenix area.
The vacancy rate is a little high because it's still summer, and the snow birds haven't returned.
Do you have a particular area are you thinking of buying? If you need helping determining what type of property preforms best as a Vacation Rental, ask!
Lots of opportunity here in the East Valley.
The phoenix Messa Gateway Airport brings in lots of visitors from cold weather areas. Check out the Vacation rental sits and see what rents.
A lot of MLB teams do their spring training here. Not so much in the east valley though but those venues do bring in a lot of tourists so keep that in mind. Otherwise look for something close to a golf course for the snow birds.
I have a condo in scottsdale, the complex has a bunch of vacation rentals, however I do long term leases on it. I looked into the option of renting it out as a vacation rental and the numbers didn't work out when I figured in the added expenses. You have to figure in paying for cable/internet, higher vacancy, cleaning, and furnishing the place. When that was all added in it didn't make enough money to make it worth the change. I spoke with a property manager and he said that most of his vacation rentals were people that owned so that they could come stay out here and use their property as well as rent it out.
As for area's I would recommend Scottsdale, there is a very high demand for vacation rentals especially from October-April. You will be looking at about 150-200 per square foot for a condo. If you need any idea's let me know. Good luck!
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.