Best phoenix suburbs for first investment home

[Varun Penmatsa]

Hello All, I am new to investing and currently looking to buy my first investment home. Main objective is some positive cash flow but more importantly for appreciation in the next 5yrs. With the Phoenix market super hot what suburbs of Phoenix are recommended as up and coming and have good potential? I currently live in South East valley and the prices of the homes are soaring. Thanks!

[Melanie Johnston]

@Varun Penmatsa if you live in the SE Valley you live in the center of some of the most attractive cities for investors. I was out scouting for a BP investor today in Gilbert and Chandler. Great places for newer built homes that attract qualified tenants. As @David Avery says, certain parts of Mesa can also generate healthy rents.

Most of the investors I work with want to stay under $350,000. And there are smaller properties available at or under $300,000...like the one I'm writing an offer on right now.

Of course the issue is, at that lower price point you are now competing with first-time homebuyers and move-down buyers, so that can make a tough market even tougher.

The other offer I wrote tonight is for an investor buying his first single-family property, a 2020 build, in Casa Grande.

True new builds are an interesting play because they are almost always worth more by the time you close on the home and get the keys. Instant appreciation.

Let me know if there is anything I can do to help!

Melanie