How's Casa Grande???????????????

9 Replies

Hi All, I was initially looking to invest in Phoenix and Tucson, but Casa Grande recently caught my eyes as an emerging market as I saw home prices have increased quite dramatically in the last 12 months. Anybody here has experience investing in CG and its neighboring Arizona City? I am primarily looking for multi-family units but I can only find them on the west side of the downtown, which my agent told me is the old town with lower-middle class residents. I also found some old posts here on BP talking about how terrible his tenants were and some streets were just full of drug activities. Is there particular part of town that I should avoid? I noticed the north east side is newer developed but they are most SFH's and don't seem to cash flow well. Any advice is very welcome :)

Hello Sean

I've been investing there since 2014. I have a two multi in AZ city and one sfr in Casa Grande. I have always found my deals in the spring through early fall as activity is low and there are no snowbirds to compete with. Tenant issue are a normal part of investing that need to be managed. Don't let that keep you away from the area. My experience has been fairly good and I'm a very very out of town landlord.

I personally like AZ city because it has lots of newer construction and is only a few minutes from cg.

Hope that helps

@Marty St. denis Thank you for sharing your experience Marty. Have you seen your rent also being raised in the last 12 months? Why did you choose CG/Arizona City as your market would you mind me asking? Btw, I reached out to Roy Garrison who you recommended in my other post and I am going to meet him this weekend :) 

I work with quite a few investors in AZ and they do quite well in this niche market esp. with how much they're buying and rehabing the properties for in this area.

Hello Sean

Great. Say hi to Roy for me. He's been great. He's also a realtor.

I chose that area for cash flow and age of properties and proximaty to two major cities, location to major highways, diversity of economy and population growth rates.

Rents have started moving up this past year albeit not quite as quickly as home values.

Sean, 

Are you buying and directly renting out to families or are you doing the rehab work and flipping it?

My suggestion before investing in either on of these areas would be to invest in a trip down here to walk the dirt.  My husband and I wanted to consider AZ City because the prices were SO LOW and seemed too good to pass up.  We made it a day trip to go there and look.  It was like a ghost town.  Yes, there is alot of new construction, because developers were out there peddling AZ City as the new Ahwatukee, but failed drastically.  So many people have abandoned their properties, and we drove down streets with multiple for sale signs....street after street.  Then to walk through them, we experienced alot of termite infestations (which isn't uncommon for AZ, but just surprised us that it was left untreated), and missing pipes and electrical.  The vandalism is bad there.  If you have vacant units, they will most likely be stripped out if not secured properly.

I am glad to hear the one poster's good experience in AZ City, but from what my husband and I saw by driving the market, evaluating the infastructure, and economy, we VERY QUICKLY drove back home.

And please don't be fooled by my location.  I may live in Scottsdale, but I am not above different areas for investment (which is why we took the trip).  I have rentals all over the Valley, and consider everything if it makes sense.  AZ City didn't make sense.

@Rich Rinaldi  

I am planning to do buy&hold, so renting out to families hopefully to earn enough cash flow. 

@Cara Lonsdale

Hi Cara thank you for your advice. Yea I heard AZ city was started as a retirement community and it did feel like under-developed in most part when I visited it earlier this year. Did you have a chance to check out Casa Grande? 

Originally posted by @Sean Yang :

@Cara Lonsdale

Hi Cara thank you for your advice. Yea I heard AZ city was started as a retirement community and it did feel like under-developed in most part when I visited it earlier this year. Did you have a chance to check out Casa Grande? 

 I haven't made the drive to check that out.  There wasn't anything on paper that looked good enough to warrant the drive.  Are you finding deals down there worth considering? 

It would have to be something with really good numbers for me to consider it there.

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