Best Rent to Value Neighborhoods??? (Phoenix Area)

11 Replies

If you invest in the Phoenix area market, where are you finding the best rent to value ratios?  I would like to stick with newer homes (1980+) and decent neighborhoods.  I have heard areas like Goodyear, Peoria, Surprise, Apache Junction, Casa Grande, Maricopa are good, but would like to hear what my fellow BiggerPockets members think.  I am less concerned with projected appreciation and more concerned about cash on cash return.  Thanks for your help.  

Those are all large cities within Phoenix metro.  You really have to narrow it down specific subdivisions.  I would recommend you going onto Zillow and display "for sale" and "for rents" on the same map to get an idea of the ratios.   I'd also consider looking at Mesa in your list.  If you can afford more, then Chandler and Gilbert are both hot right now.

Best 

Some of the cities you list above were hit VERY hard with the downturn in 2008-09, so they have much higher rates of foreclosure and vacancy than other cities in the Phoenix metro area.  @Stone Jin makes an excellent point! If we can provide you with more guidance, let me know. 

I live in Mesa, Brookfield West subdivision and the area is nice other areas of Mesa no so nice, I would just "drive for dollars" as Brandon Turner says.

Originally posted by @Grant Greene :

Some of the cities you list above were hit VERY hard with the downturn in 2008-09, so they have much higher rates of foreclosure and vacancy than other cities in the Phoenix metro area.  @Stone Jin makes an excellent point! If we can provide you with more guidance, let me know. 

 Hi Grant, 

As a lender, are you able to offer loans for investors with more than 10 properties?

 @Kurt Pourbaix here is a good article I found while looking. http://www.phoenixmag.com/lifestyle/the-10-hottest-neighborhoods-of-2020.html

Scottsdale has the best ratios, but my definition of best is likely different than yours. You can get yourself into serious financial trouble chasing immediate cash flow and ignoring appreciation in Phoenix from your armchair in Colorado ... ask me how I know this. Besides, as a "cash flow investor" looking at Phoenix, you're late to the game ... that train has left the station for this cycle, but don't worry, there'll be another one along shortly.

Keep in mind that Phoenix right now it very hot (RE) right now and prices are very high. As @David Faulkner said, the train has left the station. There might be deals to be made but you will need to get creative in finding deals. Also keep in mind the hottest neighborhoods will be the most expensive.

Here is an interesting article.

https://www.biggerpockets.com/forums/48/topics/356831-metro-phoenix-housing-market-from-worst-to-almost-first?page=1#p2271265

Originally posted by @Kurt K. :

Keep in mind that Phoenix right now it very hot (RE) right now and prices are very high. As @David Faulkner said, the train has left the station. There might be deals to be made but you will need to get creative in finding deals. Also keep in mind the hottest neighborhoods will be the most expensive.

Here is an interesting article.

https://www.biggerpockets.com/forums/48/topics/356831-metro-phoenix-housing-market-from-worst-to-almost-first?page=1#p2271265

 Kurt K makes a good point, while there are still good deals to be had in the Phoenix metro area - they're just a little tougher to find.  I would suggest going a bit south and looking at some opportunities in Tucson, also. 

Some nice value spots in Scottsdale, in outskirts of Old Town. Also, in certain areas of Mesa. 

@Kellen King What areas of Mesa are nicer? I have lived in Peoria for most of my life and know less about that side of town but I am looking at buying a residential multifamily to owner occupy on that side of town to be closer to work at the 202 and Cooper. In looking at the MLS I like 2837 E Capri Cir. and 136 W 9th Pl. but am also considering 47 N 67th St although the numbers don't work as well.

Thanks

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here