Phoenix Arizona is not the place?

Question

I been trying to find a deal in my state(Arizona) but everything so high and i want to see all the action on my first deal. At this point i might be good to just wait for some correction. What are your strategies on high markets?

Jake Kain · Answer

@Domingo Cano

Are you looking to BRRRR using cash/hard money? Or live in while you renovate?

My wife and I have been doing live in rehabs. Our first was a live in flip. We just made it past 12 months in our second purchase and have been rehabbing over the past few months getting it ready to rent. We close on our next primary tomorrow and plan to do the same. The first 2 loans were VA and this next one is a conventional with 5% down. More leverage, but a lot less barrier to entry and we slowly start to acquire some rentals. Just a strategy I thought I would share!

Pamela Sandberg · Answer

It's difficult to cash flow in Phoenix right now, but if you invest for appreciation, it's one of the best markets in the country. Really just depends what your strategy is.

Paul Welden · Answer

Phoenix active inventory is at 13,898. I think that the Phoenix market needs about 25,000 active properties for sale to become a "normal" market. So, unless 11,000 additional properties get dumped on us soon and the demand from buyers slows down, I think it will be a low inventory market for quite a while.

Jake Kain · Answer

@Domingo Cano

What exactly are you looking for? It is a very hot market, but deals are still out there and being found.

Domingo Cano · Answer

@Paul Welden

I agree and its possible in other zip code but than still hard but ill keep looking. Thanks

Paul Welden · Answer

I think that the current rental market pricing in Phoenix overall can make it difficult to cashflow, but not impossible

Jake Kain · Answer

@Domingo Cano

I will shoot you a PM.

Domingo Cano · Answer

@Jake Kain

Yes thats the strategy im looking to do.

My lender wants 25% if the house needs rehab. If i buy another house and live in it that would be a conventional 5% down

Domingo Cano · Answer

@Paul Welden

Theres alot out there 150k and less but for my strategy buy, fix and rent it wouldn’t work im chasing cashflow

Paul Welden · Answer

@Domingo Cano There are many good properties to fix and rent in good locations but depends on your price point, property type, etc.

I think that in order for buyer demand to slow down in the Phoenix market, among many other things ... interest rates need to increase, buyers need to stop wanting sunny weather, and the economy needs to stay closed for much longer.

Certainly not an all inclusive list but a generalization.

Phoenix Arizona is not the place?

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