Hi. We have the opportunity to buy four single family homes in Prescott, Arizona that are currently cash flowing. At a price of $525 for all four and $4800/mo in rent it misses the 2% rule. My parents live in Prescott, Arizona and it seems to be an area that has continued to boom, has low vacancy rates, and a bit of a shortage of rentals. I'd love to know if anyone else is looking at this area or has invested in this area and what your thoughts are on the market and 2% rule.
I have been passively looking into properties here in Prescott, and nothing even comes close to the 2% rule. Your opportunity seems a bit overpriced, without knowing any of the details, but I can tell you, cruising the MLS doesn't often yield homes in the 130s. I'd be interested to hear a bit more!
Your cash flow seems a bit low for the rental rate coming in. So, either the purchase price is very high, or your expenses are high. I would push back on this a little bit, and do some further analysis. Without more details, it is hard to help you break it down.
Have you ever considered Munds Park just South of Flagstaff? There many be some gems to consider there, and the area is a growing hot spot for Phx dwellers escaping the heat for the Summer. Plus, it is 30 minutes to NAU, so it has a growing population and economy. Just a thought.
I would say that you are correct about Prescott having a shortage or rentals, but it also a snowbird and retiree neighborhood for Canadians, Californians, and east coasters. Your numbers are a little light and be aware of your cap ex in areas that snow. Be aware that Prescott and Prescott valley has "county islands" mixed into what look like large neighborhoods which the properties are on septic and propane.
Did you ever end up pursuing these Prescott properties?
I think I have someone who would be interested in them.
Message me and let's connect!
Just saw this post. I'm curious if you ended up purchasing those properties. I'm in Flagstaff, and just like here, Prescott has an inventory shortage. The town keeps growing but new-build is slow. It's hard to find anything that fits the 2% or even 1% rule, but at $130/each, that could be a good deal. Run the numbers, check expenses, and rent. Is there potential for value-add?
Would love to hear more!
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