New - Investing in Phoneix AZ from San Francisco

10 Replies

Hey everyone - I'm new to real estate investing. I've taken a class and done a ton of research to help build a foundation
(a lot through BiggerPockets!). Still have a ton to learn, but ready to start building my team. This will be key because I live and work full-time in San Francisco, but plan to invest in the Phoenix, AZ region.

My goal is to acquire 2-3 single family and small multifamily properties that are close to 10% COC in the next 3-12mo.

I've been referred to a lender that focuses on working with investors and have reached out to a handful of local real estate agents (including the ones listed on Bigger Pockets). I'm also beginning the search for a solid Property Manager and Contractor. I'm very open to any recommendations/suggestions.

My goal for this platform (and post) is network with other investors in AZ (esp out-of-staters like me).


Looking forward to connecting,

Dave



Originally posted by @David Brownschidle :

Hey everyone - I'm new to real estate investing. I've taken a class and done a ton of research to help build a foundation
(a lot through BiggerPockets!). Still have a ton to learn, but ready to start building my team. This will be key because I live and work full-time in San Francisco, but plan to invest in the Phoenix, AZ region.

My goal is to acquire 2-3 single family and small multifamily properties that are close to 10% COC in the next 3-12mo.

I've been referred to a lender that focuses on working with investors and have reached out to a handful of local real estate agents (including the ones listed on Bigger Pockets). I'm also beginning the search for a solid Property Manager and Contractor. I'm very open to any recommendations/suggestions.

My goal for this platform (and post) is network with other investors in AZ (esp out-of-staters like me).


Looking forward to connecting,

Dave

Here is something to start with; There is more if you need it.

Average Turnkey Cash Flow Per Door In Phoenix Metro Area No Bank Financing Needed

https://www.biggerpockets.com/forums/600/topics/584916-average-cash-flow-per-door-in-phoenix-metro-area

 

@David Brownschidle , you have a better chance finding a unicorn than finding a coc of 10% in the Phx area w buy/hold.  If you were able to find a 10% coc return, I would be willing to bet that the risks are so high that you would never hit 5% coc return.  Is that the type of investment you want?

Many multis have cap rates in the 5’s right now.  Valuations are thru the roof.  Even the ‘hood is pricey.

Good luck w your 10% coc.  Let us know how it goes.  ;-)

Originally posted by @David Brownschidle :

Hey everyone - I'm new to real estate investing. I've taken a class and done a ton of research to help build a foundation
(a lot through BiggerPockets!). Still have a ton to learn, but ready to start building my team. This will be key because I live and work full-time in San Francisco, but plan to invest in the Phoenix, AZ region.

My goal is to acquire 2-3 single family and small multifamily properties that are close to 10% COC in the next 3-12mo.

I've been referred to a lender that focuses on working with investors and have reached out to a handful of local real estate agents (including the ones listed on Bigger Pockets). I'm also beginning the search for a solid Property Manager and Contractor. I'm very open to any recommendations/suggestions.

My goal for this platform (and post) is network with other investors in AZ (esp out-of-staters like me).


Looking forward to connecting,

Dave

Welcome to the site Dave.

 

@David Brownschidle , @Alan Grobmeier is correct in that it is not easy to find properties that produce a 10% COC return in Phoenix in the regular fashion. However, it really just depends on how you buy them. I have worked with several investors from the Bay area who have funded our projects in Arizona so that they could learn more about the market and see how we do the lease option model. Similar to what Account Closed posted, there are ways to produce a higher than 10% COC return in Phoenix (a much, much higher return) but it isn't done very often in the traditional way of finding a property off of the MLS or from most realtors. It's done more through creative financing or creatively acquiring the properties.

Hi @David Brownschidle , welcome to BP and the world of real estate investing. Once you get your first rental, you'll be hooked and will want to buy tons more! You should join a few of the local meetup groups to expand your network even more. You might meet another investor who invests in AZ and might help you with your goals. Good luck!

As others have said, 10% coc is tough out here. I can get that on my STRs but not my LTRs. I do a lot of property management with them, if you’re interested in that route I’d be happy to chat. 

@Jackson Gu : Get as much info as you can from different sources. Check rents on Rent Cafe or Rentometer, crime stats through the local police departments, school ratings through Great Schools or School Digger, etc. Putting all this info together can give you an idea of what's going on in each area. 

Of course, there's no substitute for insight from locals :) Happy to answer any questions I can! 

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