Phoenix or Tucson to Start Out In?
I am brand new to investing and would like to get into rental properties. Any advice for which market to start out in? The size and competition in the Phoenix area makes me think Tucson might be safer, but I’d like to hear what everyone thinks, or if it even matters.
Most Popular Reply
The best market for you to invest in is where you have good people: find a deal-finder, a lender, a property manager and a general contractor in just about any US city & you will make millions over the next couple decades if your people are good at what they do.
Price points are generally lower in Tucson than in Phoenix, but Phoenix has the larger, more diverse economy and is further along in its growth trajectory. Phoenix is double the size and triple the population as Tucson (rough numbers), and they are basically the same proximally: only 100 miles between the two, and both cities are growing for overlapping reasons. Both are positioned to do very well over the short- and long-term, for whatever that means in our volatile market...
One more thought: analysis paralysis is the enemy, far more so than choosing the "wrong market." Pick one to focus on & start networking.
- Patrick Allen