Arizona Investors! Does the 1% rule work in Phoenix?
I've been looking at houses all over Phoenix for the past year and based off of sites such as rentometer, Craigslist and Zillow, houses between $200K - $350K seem to fall well below the 1% rule. Whenever I do most of my calculations for a property I'm interested in, I end up losing money in almost every scenario. There are a few where I make a profit, but well below a 10% ROI.
Do I need to take these sites with a grain of salt and charge the fee I want? I would imagine a 3 bed/2 bath could rent for $2K a month anywhere in Phoenix but that’s just doesn’t seem to be the case.
Rent usually ranges from $800 to $1500 and that is usually below my bottom line. At best, I end up making $200 - $300, but I need at least $600. I would prefer to rent for at least $2K a month in cities like Avondale, Surprise, Goodyear and Peroria.
Am I being unrealistic to expect to rent for that much anywhere in Maricopa county?