Is it too late for Arizona?

Question

Within my research of finding homes to buy and hold with,  i’ve started seeing a trend in the popularity of purchasing in Arizona.  I’ve always had an interest in Arizona,  and I want to get the opinion of seasoned investors and people who have experience there about whether or not if it’s too late to find a lot of deals there?

Account Closed · Answer

That is why I stick to "off market" properties.

Depends on what you call "easy money". I just yesterday picked up a 4 bed 2  bath 1532 sq ft in Phoenix by taking over their loan of $169,000 using  Subject To and giving them $5,000. It needs some renovation, is  currently worth about $215,000 as it sits and about $285,000 after $40k  of renovation based on comps.

The deals are out there - however, if you are working a job full time, you'll just never find them. I team up with people to show them how it's done.

Account Closed · Answer

I simply am not having a problem finding deals like that. I can't speak for others so it will be interesting to hear their take.

Account Closed · Answer

Depends on what you call a "deal". I just yesterday picked up a 4 bed 2 bath 1532 sq ft in Phoenix by taking over their loan of $169,000 using Subject To and giving them $5,000. It needs some renovation, is currently worth about $215,000 as it sits and about $285,000 after $40k of renovation based on comps. I haven't run the numbers on all of my options so I'm not sure which way I will take this one. I am "out of pocket" $5,000 total. No bank, no credit report, no hassles.

Would that qualify as a "deal"?

Shiloh Lundahl · Answer

@Ian Jackson it depends on what you want to do with the property or what strategy you want to use.  We found that flips with enough spread to make it worth it to us were getting harder to find so we switched our model to a lease option model and it has worked out well for us.

Wes Blackwell · Answer

@Ian Jackson

Like Mike said, it depends on what you call a deal.

In most competitive markets, you're going to have to work to find the "deals" if you're looking to pay less than the property is worth. Anything that hits MLS is going to sell at near full-market value because there are so many buyers out there and the competition is really stiff. Seller's market = higher prices.

That being said, if you're putting 50% down or paying all cash and you're primarily looking for cash-flow, then most properties could be considered deals by those standards. It all depends on exactly what you're looking for.

Perhaps if you give us some more criteria, we'll be able to help point you in the right direction :-)

Albert Hasson · Answer

Yeah, that seems like a lot of work

If you have the time and expertise, more power to you!

Grant Rothenburger · Answer

@Ian Jackson Never too late anywhere. Deals exist everywhere, they just get harder to find and harder to be the first one to find it when there is more competition and the market heats up.

Albert Hasson · Answer

I’m sure deals can be found but the median home price on the Phoenix MLS has just this month surpassed the record set in mid 2000’s just before the recession

The easy money has been made. Prepare to work hard to find deals.

Ian Jackson · Answer

Account Closed Yes i would say very much so. I assume you also are paying for the renovations out of pocket as well? Are opportunities like that in Arizona scarce considering the growing popularity in real estate especially around Phoenix?

Is it too late for Arizona?

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