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New investor in phoenix
Hi everyone new to bigger pockets and real estate. I am just starting to do a lot of research, books and podcasts learning as much as I can. I am looking for single family or small multi family properties. Looking in north phoenix, Cave Creek and surprise. My goal is long term wealth and appreciation, but I want to be at least even in cash flow. I am trying to find value add properties to hopefully fix and brrr for long term rentals. From my research so far it seems like there are no deals right now that will be cash flow positive. How are people finding deals in this market? Also does anyone know of any local real estate groups or meetups?
@Jason Muesch, welcome to Bigger Pockets! Great to see you're diving deep into real estate research. You're definitely on the right track by focusing on long-term wealth and appreciation while aiming for at least breakeven cash flow.
Now, about the market you're looking at (North Phoenix, Cave Creek, and Surprise): it’s true that finding properties with immediate positive cash flow is challenging right now. But there are still strategies to make deals work, especially with value-add properties. Here’s what has worked for me:
- Look for distressed or off-market properties: In a competitive market, finding deals requires thinking outside the box. Connecting with local wholesalers or real estate agents who specialize in off-market properties can give you a head start. You might find properties that haven't hit the MLS yet or owners who are more willing to negotiate.
- The BRRRR method: You mentioned the BRRRR (Buy, Rehab, Rent, Refinance, Repeat) strategy. It's solid, but one key to success is buying at the right price. In this market, the numbers have to be tight from the start—ensure your rehab costs and after-repair value (ARV) support a profitable refinance. One thing that's worked for me is targeting properties that have been on the market for a while, where sellers are more flexible on price.
- Phoenix real estate meetups: Networking is crucial. The Phoenix Real Estate Club is one of the most active groups in the area. They meet regularly, and it's a fantastic way to connect with other investors, wholesalers, and potential partners. Building relationships here can help you find deals before they go public.
- Solar panels in Phoenix: A unique fact to consider—homes with solar panels in Phoenix tend to sell faster and at a higher price. According to studies, homes with solar systems in Arizona have seen an average price increase of 6.8%, and they often sell faster due to their energy efficiency benefits, which are highly desirable in the Arizona heat. This could be a long-term value-add you might want to explore.
If you’re in this for the long game, patience and persistence are your best allies. Keep digging, build your network, and make sure your numbers work before diving in.
Best of luck, and feel free to reach out with more questions!
PS: Did you know that Phoenix is one of the top three solar markets in the U.S., alongside California and Texas? Solar incentives can make a big difference here, both in terms of cash flow and property value.
Hey Jason, I can help connect you with investment properties as well as with my professional network. Just shot you a message, hope to connect.
Hey Jason, my clients find properties that cash flow. Some more down more cash, others get creative with rental strategies. Ultimately it just depends on how much capital you have and how much sweat equity you are willing to take on.
I run a meetup on Saturday mornings down in Mesa. If you want more info on it shoot me a message as we meet once or twice a month.
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Real Estate Agent
- 480-818-7745
- [email protected]
Quote from @Tanner Sortillo:
Hey Jason, I can help connect you with investment properties as well as with my professional network. Just shot you a message, hope to connect.
Quote from @Jason Muesch:
Hi everyone new to bigger pockets and real estate. I am just starting to do a lot of research, books and podcasts learning as much as I can. I am looking for single family or small multi family properties. Looking in north phoenix, Cave Creek and surprise. My goal is long term wealth and appreciation, but I want to be at least even in cash flow. I am trying to find value add properties to hopefully fix and brrr for long term rentals. From my research so far it seems like there are no deals right now that will be cash flow positive. How are people finding deals in this market? Also does anyone know of any local real estate groups or meetups?
Hi Jason, welcome to BP! There are areas you can find cash flowing properties, but definitely depends on the amount you're willing to put down and if you can buy off or only on market.
I have multiple clients I've found cash flowing properties for and would love to chat about it, I'll PM you!
Phoenix market has gotten very pricey these last 10 or so years. Very very difficult to find cash flow. I’m looking in the Tempe area now for a vacation home (condo) for possibly retirement and it’s all pricey compared to possible rents. I would suggest looking in Midwest markets if you are looking to be cash flow positive. I have 9 doors across Memphis and Detroit and I believe these markets are the “next Phoenix” in terms of appreciation. Happy to connect and knowledge share if you are interested.
It’s great to see you putting in the time to research and build your knowledge. Phoenix is a tougher market right now, so finding value-add properties that cash flow can definitely be challenging. Try getting creative—look for off-market deals, network with local wholesalers, and build strong agent relationships. Expanding your network is the best idea when starting out. I’m not in the AZ area, but let me know if I can help with anything or if you need more direction—happy to chat!
Hi Jason.
I grew up in Cave Creek, have lived in North PHX for most of my adult life, and have had a lot of success helping clients find properties in Surprise this year.
Would love to help if strategize with you!
- Property Manager
- Royal Oak, MI
- 4,682
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@Jason Muesch you're making a typical newbie mistake.
Work your numbers backwards to determine a price that makes the deal work and only offer that.
Of course, you may have to make 100 offers to get one accepted, but that's how it now works.
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Property Manager
- 248-209-6824
- http://www.LogicalPM.com
- [email protected]