So my wife and I currently live in San Diego and have been interested in REI in the Phoenix area for a little while now, but have only been looking at properties through sites like Redfin or Zillow just to get a feel for what the market is like and whats available. We finally have an open weekend to make a trip out there, so we have decided to go this weekend to check out the different areas for ourselves and get a feeling for which areas we like and don't like. We are mostly interested in 3 or 4-plex properties of class A or B for buy and hold, and obviously want to maximize our cap rate while still being able to buy in desirable neighborhoods. Our knowledge of the area is limited and figured we could come here to ask a couple questions in order to help maximize our time during our visit.
1. Given the brief description of what we are looking into at the moment, which areas/neighborhoods would you recommend looking at?
2. Seeing that we are out of state, are there any PM companies you would recommend? Anyone currently using any PM companies in the area that can give some feedback?
Thank you all in advance for the help!
Hello Blaine, you should be able to find three and four-plexes in and around the Tempe area near the Arizona State University campus. I remember seeing some scattered north and south of the Thomas Rd area between 40th street and 55th street. Can't say they're a bargain, but worth checking out.
You should definitely give a call to the Arizona Real Estate Investors Association. Can't include the phone number here but you can Google them. They can answer questions about PM's in the area and other areas of interest.
@Blaine Bisquera Welcome to Phoenix. We are seeing compressed cap rates for 3/4 plex right now. If you are OK with 7%ish then enjoy your trip. If you want a higher cap rate you might want to consider the midwest or just some short term notes while waiting for things to deflate.
@Blaine Bisquera Welcome to the BP family. I love me some San Diego. Phoenix is a big city and there are deals out there. In some areas you can find some really good cap rates. The market in Phoenix is beginning to pick up so get in now. I am a member of the Arizona Reia. I can ask some of the members to find out who the use for PM's. I also can get my hands on properties due to my aggressive marketing campaigns I run. Let's hook up maybe we can help each other out. Scottsdale, Paradise Valley, Gilbert, Tempe Mesa, Chandler are great areas to invest in.
Tempe could be better seeing that ASU is in Tempe. Many college kids there that live in 3 or 4 plex properties. Great way to cash flow. Many local wholesalers as well can find the type of properties you are looking for. When you decided on the area you interested in let me know. I have some solid connections in Phoenix.
I personally own 3 and 4 plex buildings in Tempe within biking distance of ASU. Rents are on the rise and so are prices. The opportunity in residential multi family here is to buy something that needs work and have it fixed up. Last year I bought a fourplex where the average rents were $585 for 2 bedroom 1 bathroom. My latest lease was $775 after an interior rehab. After I finish the exterior I expect $900+. If you need help feel free to reach out. I have an excellent contractor for investor flips and rehabs.
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