Investor · San Mateo, CA · Member since 2020 · 3 posts · 4 votes
Hi all!
I'm a new investor from California. I'm looking to find my first SFH (3+b2b) investment property in the Phoenix area, as a long term buy and hold rental at 300k - 400k price range. I'm mostly looking at Glendale, Mesa and south / southwest Phoenix. Which neighborhoods do you think have good appreciation return in the future? Are there any other areas I should look into?
I want to ask about the South Mountain neighborhood (north of Baseline Rd) in particular. The commute to downtown is convenient, some communities look decent (at least from Google street map). Comparing to more established areas like Chandler and Gilbert, the rental income is similar while property value is only about 3/4. On the other hand, I read from some online article it is one of the worst neighborhood in Phoenix (source). Any local insights about this neighborhood? Is it an up and coming one?
Looking to get input from everyone and thanks in advance!
I'd probably think twice about South Phoenix. There are some rough areas down there, although there are a few pockets of newer construction. If you're that close to Downtown and Tempe and prices are that low, they're low for a reason.
At your budget, there are a small amount of properties in Chandler and Tempe that would have pretty strong upside in terms of quality of tenant and appreciation. Keep an eye on Buckeye. It's one of the fastest growing cities in America and you can get near-new houses for under 400k still.
I'd look at Goodyear and Surprise before Glendale as Glendale is going to have much older housing stock (1960s-1980s vs 2000s+ for the suburbs) and the suburban homes are going to need a lot less work and mostly cosmetic touch ups like paint if the home has been maintained well.
I'd say where you're looking to buy would depend on how much work you'd be looking to do. The homes built in the 60s and 70s are not going to be as turnkey as the ones built this century.
I'd probably think twice about South Phoenix. There are some rough areas down there, although there are a few pockets of newer construction. If you're that close to Downtown and Tempe and prices are that low, they're low for a reason.
At your budget, there are a small amount of properties in Chandler and Tempe that would have pretty strong upside in terms of quality of tenant and appreciation. Keep an eye on Buckeye. It's one of the fastest growing cities in America and you can get near-new houses for under 400k still.
I'd look at Goodyear and Surprise before Glendale as Glendale is going to have much older housing stock (1960s-1980s vs 2000s+ for the suburbs) and the suburban homes are going to need a lot less work and mostly cosmetic touch ups like paint if the home has been maintained well.
I'd say where you're looking to buy would depend on how much work you'd be looking to do. The homes built in the 60s and 70s are not going to be as turnkey as the ones built this century.
@Jie Yu I am real estate agent here in Phoenix, I am also originally from California, in the Santa Barabara area. I bought my first rental here about two years ago. Would be happy to help you out. Feel free to message me on here.
I think good advice on post of areas to stay away from. Truth is its hard not to find an area of Phoenix that is not seeing great appreciation right now but I believe the nicer areas (Certain parts of Phx, Tempe, Chandler, Gilbert) will be best. Going to be very hard to find something that is not borderline tear down for 300-400k in those areas. Might want to look at some of the outlying but growing areas like Buckeye, Surprise, Queen Creek and Santan. Could even go down to Maricopa/Casa Grande to make that budget work, Pinal county is fastest growing counties in AZ per capita.
The South Mountain Village area is a has a lot of upside with great views. Trust your gut!
I think you might mean South of Baseline though? My favorite pocket is between 7th Ave - 24th St and Baseline - South Mountain. Tends to get a bit sketchy as you head north towards DTPHX.
Investor · Oakland, CA · Member since 2019 · 11 posts · 2 votes
4y
@Jie Yu following and hope you able to close on a deal soon
@Bob Okenwa solid detailed feedback. saving this information for future reference going be entering the great phoenix market in 2022 along w/ business partner that live there , i'll check some of your other post to see what gems you have thanks again
Queen Creek, AZ · Member since 2014 · 2k+ posts · 1k+ votes
4y
@Jie Yu You might also consider SE Phoenix. Areas such as San Tan Valley might hit your numbers and generally have lower crime. Two websites to look at Rentometer.com and Trulia.com. Rentometer will give you a range of rents for a given address, just put in the address, Bed/bath count and you have a ballpark number. I think I pay $99 a year for the service and it lets me know what to expect. Trulia still has a crime map where you can spot high crime areas that you might want to avoid.
Given the rising prices you might want to consider looking at a site like Furnished finder and doing corporate housing. That might bump a marginal deal into the awesome zone.