Phoenix neighborhoods

[Hersh M.]

Hi,

Can people who have expertise in Phoenix market please recommend a few class A/B neighborhoods? I am primarily looking at positive cashflow SFHs.

Currently the markets might be a bit overbought but I am looking from a longer term perspective. 

After doing some due diligence, I will also ask for investor friendly realtors and property managers in the area. 

Thanks. 

[Robert Szewczyk]

@Jeff Bethke My opinion....Unless you are buying commercial property or multifamily unit I wouldn't worry to much about vacancy. Your vacancy on SFR can be very effectively minimized. When your tenant leaves after 1 year lease, your turn around (cleaning, improving or repairing) should not be more than 1 week in order to put it back on the market. Once on the market you should be able to get a tenant within 2 weeks. At your cash flow of $436 you can lower your next lease price a little bit, if needed, to outbid your competition, if any. This is how you can manipulate your vacancy rate. You have some margin there. Your expenses during the lease term can also be minimized by paying $350-$400 per year for Home Warranty plan that will cover unexpected events. Your out of pocket cost (deductible) will be around $50 per visit. Your maintenance expenses can also be minimized, by simply changing your landscape (if needed) to desert (no gras, no hassle in AZ). If you have a pool, all expenses related to pool should be paid by tenant, but I would steer clear of home with pool. You can add property management at 10% rate and you should still be ok. Having a good team on your side is the best investment you can make