Investment Property in Gilbert, AZ.
Hi All, My wife and I are new investors and looking to purchase a rental property close to downtown Gilbert, Arizona. We understand the market is ridiculously hot right now especially in this area but love the growth potential due to growing population in the area and great schools for a long term rental. This is a buy and hold long term opportunity and we would be paying 6% over asking price and only cash flowing $125.00 a month. Purchase prices in Gilbert are up 30% YoY. Does this seem like an investment we should move forward with?
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Hi Gavin,
I also live in Gilbert, what a couple years of appreciation! Does your cashflow number include allowances for Vacancies/Repairs etc? Unless you're putting a large down payment, I don't see any houses on the market in Gilbert that would offer any cashflow.
If you're expecting appreciation, that's definitely something you could bet on. However that may include negative monthly cashflow after setting those allowances for added expenses.