Hey all! I have been searching for a while and it has been tough to find anything that meets the 1% rule in the current Phoenix market. I did however purchase a condo 7 months ago that is at about .8% and has been doing well so far. I am actually planning to buy another one in the same complex with a similar return.
All that aside, is anyone still able to hit the 1% rule or higher when purchasing in the phoenix area?
Mods please delete if possible. Moved this to the main Arizona forums
@Kevin B can you point me in the direction of the main Arizona forums? I'm new and can't seem to find them. Thx!
I have this Cash Flow Machine for Sell In Phoenix if you're interested.
"is anyone still able to hit the 1% rule or higher when purchasing in the phoenix area?"
We were saying the same thing two years ago.
We've switched focus to Tampa / Fort Lauderdale where the 1% rule is more realistic.
Florida and Nevada are the only two states (in appreciating markets) where average home prices are still below 2007 highs - they will probably surpass that this year.
We plan on coming back to the Phoenix market when rent to purchase ratios are better.
I have also had a lot of trouble finding anything close to the 1% rule. I currently have one that I picked up 6 months ago but it's because I got a steal on the house. Purchased for $90,000, Put $20,000 into rehab ($110,000 invested but recently appraised for $165,000). Rented it out for $1,100/ Month on a 12 month lease. I want to purchase more rentals but the high sales prices & low rents has me focusing on fix/flips right now.
I agree with @Eric Delcol and @Clayton Coombs . Tampa is still running in an appreciable market. I have Investors from all over the country contacting me for properties which I’m happy to report, I have have been able to help. It is still lower than the highest in 2007 and still has lots of opportunities.
The 1% rule (or 2% rule, which is also floating around BP) was created for mobile home parks and storage facilities. FYI.
It doesn't usually translate to SFR or MF.
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