Good area to rent out rooms?

Question

I am currently a student who will be moving to Phoenix, AZ in May 2019 for a job opportunity. I plan to stay in Phoenix for at least 2-3 years. I would like to purchase a property for less than $260k to live in and rent out the other bedrooms. The other tenants will also be my roommates, therefore, I would like to have younger, student aged tenants as opposed to older adults.

What are some good areas for this type of rental? I have been looking online at properties near ASU, however, there isn't anything in the $260k price range. There are however properties in the South Mountain Village area, 25 minutes southwest of ASU with that price. I just don't know if I would be able to find students willing to rent a home that far from campus, even though it would be much nicer than what they can get close to campus.

Dennis K. · Answer

Future welcome @Brad Archambault to Phoenix.

I would recommend looking within a maybe at the most a mile from a light rail station and using that as part of your marketing for getting roommates.  It goes from Downtown Mesa to Dunlap/19th Ave in Phoenix.  The light rail does provide easier access for students who either take classes at the Downtown Phoenix campus or the main campus.  There's also talk about a Downtown Mesa campus one day.

I'm not positive on it, but I think ASU students are still provided with bus/light rail passes.

Jake Mullins · Answer

I live 3 miles east of ASU off of University & 101 (Just south of the Chicago cubs spring training stadium.  I never have a shortage of roommates and rent my 3 bedrooms individually for $600/month. That includes all utilities and internet. I bought in 2014 when I finished my freshman year at ASU. I've been able to live for free for the past 4 years. Homes in my area have an average value of 220k. Here is an example of one: https://www.zillow.com/homes/for_sale/157725954_zpid/33.423027,-111.886104,33.419346,-111.889537_rect/17_zm/1_fr/

Garrick Oconnell · Answer

Mesa is not that far from Tempe, but if you can raise your purchase price in Tempe many rentals by the room within a few miles of the college receive high monthly rents $100.00's above the market monthly rent.

You can check out craigslist and Facebook forums at room rentals offered towards students to average the income you could receive monthly by renting out rooms.

Lisa Maturo · Answer

I've seen quite a few single family homes, 3BR/2ba near ASU (within 5 miles) for under 260k in Tempe, what area are you looking in? Try zip codes 85282, 83 (a little south of ASU) in Tempe or like other suggested in W. Mesa, Ahwatukee, South Scottsdale. Even parts of Chandler are just 15 min drive to ASU.

Stone Jin · Answer

@Bob Okenwa is correct, stay away from south mountain area, it's a rougher part of town.  I would l recommend the part of mesa by Mesa Community College.  It's close enough to ASU but the prices are not Tempe prices.  Good luck.

Bob Okenwa · Answer

Hi @Brad Archambault

You're brave to be moving here in May lol. Just in time for 100 degrees. You'd probably want to avoid the South Mountain area. It is one of the rougher parts of the city and not that close to any universities. There are properties in Tempe, South Scottsdale, Ahwatukee, and Mesa that would fit what you're looking for. Mesa has light rail access and the western side of the city isn't too far from downtown Tempe.

ASU has a downtown Phoenix location and a Glendale location so that is something to keep an eye on. There's Grand Canyon University in the western portion of the city as an option too.