Buy Multi-Family in Phoenix?
Aloha,
I'm new to Biggerpockets, and excited to part of this community. I'm looking at Multi-Family in Phoenix, AZ, or more specifically Scottsdale. I'm somewhat stuck at a crossroads because Phoenix has shot up quite a bit (about 22%) in the last year, but it was mostly in single family homes due to institutional investors (it seems to me).
A fear i have about these large companies buying so many homes is that they could dump them quickly and poorly effect the market.
Also, I fear that the Phoenix market has been eaten up so quickly its been exhausted of its potential. Although it seems to be cooling off a bit at the moment.
I am a bit bias towards Arizona as apposed to other states because i recently graduated from NAU and I've been visiting AZ at least once a year since i graduated in 2010. Many of my friends and their parents live around the area, which makes me feel more comfortable about the investment.
I also see that places like Houston, TX show some even better prospects for cash-flow. But, i have no ties to the state and no other reason to visit the area other than to check on the property. So, my gut says phoenix due to my ties there and having known the area, but my investor side says that i should be area agnostic and go with the better cash-flow
I live on Maui, Hawaii and own one rental condo there, so I would be an absentee owner with a PM where ever I decide to purchase.
I would greatly appreciate your two cents, or answer any further questions about my situation. Thank you much!