Ideas for Phoenix market plus vetted Realtor

11 Replies

Hi guys! An avid fan here. 

I'm set to relocate to the Phoenix metro area within the next couple of months and I'd like to get your insights in this market. I have been preparing for this day to come to finally purchase my first investment. Looking into house hack (with small family) and definitely build my portfolio from there. 

I intended to get into multifamily homes, if they exist, but come to find out there's not much available as the construction has been decreasing for the past several years. Even if there are, its located in a high crime areas which I think is not worth the risk for my wife and kid. Especially if I'm at work most of the day. 

I will be working in the downtown area and would like to live as close as possible. Where would you recommend I should look into that is family friendly town? Good rental market? 

Also looking for vetted Realtor (investor friendly) that could help me in my search. I have high hopes that you guys will help a novice investor to the right direction. 

Thanks in advance! 

There seems to be a slew of investors looking to house hack in phoenix on the BP forums the last few days. I think the available inventory of small MF homes on MLS doesn't pencil out. Any that do are snatched up in hours. You can try to buy a home with an guest home that could be rented out. There are some of those available in central phoenix.

@Keith Ralleca welcome to BP and to Phoenix in the next few months!

I'm a native Phoenician, long time local landlord, and a licensed Realtor who's helped many BP clients buy across the metro markets. I specialize in helping clients relocate to the Valley with a focus on multi-family and other investment property opportunities.

You're right that the MF inventory is slim and not always desirable for owner/occupant families to call their own. Some of the best product is out in Mesa, but that's about 45+ min commute to down town Phoenix each way. A 3 or 4 unit building will occasionally pop up in some of the charming historic districts around central Phoenix, but as @Stone Jin mentioned, they have tremendous competition and go quickly.  

Central Phoenix is a great place to live and has an abundance of housing opportunities located "between the 7's", which is from 7th street West to 7th ave and Northern Avenue as the top border. I've helped two BP members purchase homes in this area in the past 9 months. 

Originally posted by @Stone Jin :

There seems to be a slew of investors looking to house hack in phoenix on the BP forums the last few days. I think the available inventory of small MF homes on MLS doesn't pencil out. Any that do are snatched up in hours. You can try to buy a home with an guest home that could be rented out. There are some of those available in central phoenix.

I actually found one 3/2 with detached guest house. Definitely something to consider. 

Any other areas you recommend? What do you think about south mountain area? 

@Keith Ralleca South mountain generally is a tougher part of town, but there are pockets of newer subdivisions.  Generally if you are closer to baseline road, it's not terrible with a lot of new builds.

Originally posted by @Ryan Swan :

@Keith Ralleca welcome to BP and to Phoenix in the next few months!

I'm a native Phoenician, long time local landlord, and a licensed Realtor who's helped many BP clients buy across the metro markets. I specialize in helping clients relocate to the Valley with a focus on multi-family and other investment property opportunities. 

You're right that the MF inventory is slim and not always desirable for owner/occupant families to call their own. Some of the best product is out in Mesa, but that's about 45+ min commute to down town Phoenix each way. A 3 or 4 unit building will occasionally pop up in some of the charming historic districts around central Phoenix, but as @Stone Jin mentioned, they have tremendous competition and go quickly.  

Central Phoenix is a great place to live and has an abundance of housing opportunities located "between the 7's", which is from 7th street West to 7th ave and Northern Avenue as the top border. I've helped two BP members purchase homes in this area in the past 9 months. 

Hey Ryan thanks for responding I'll send you a pm. 

My suggestion would be to rent for a while to acquaint yourself with the Phoenix landscape.  The freeway system is pretty good and you can get around the valley easily, even in rush hour.  Each suburb, Tempe, Mesa, Scottsdale, Glendale, Goodyear, Peoria, etc. has it's own flavor and your preferences will change after you've been there a while.

The Phoenix market is mature and deals are few and far between.  You will need time to find one.  The BP realtors, @Ryan Swan , will help you, but it will take time.

Downtown Phoenix has some fantastic historical neighborhoods. Investors are doing big rehabs for big profits, but they are also house hacking with casitas. It's a very popular model here and it would be very close to your work downtown. Would love to discuss it in detail! 

I moved here a few years ago to house hack as well. I purchased an affordable 3 BR townhouse in late 2017 with a low monthly payment that allowed me to purchase two additional 1-bedroom condos for short-term rentals. We've been slowly renovating the townhouse (mostly paint and countertops to be honest) and are about to list it for $60-70k more than what we paid for it. We put less than $10k into it. I'm also selling one of my rental condos for about $30k profit after owning for less than a year. My rental condos make between $35-40k per year in rent, mostly in the spring. 

I just closed on a new SFH that will cost about the same monthly as our townhouse by subsidizing with sale profits and rental income. And we get our own 4 walls, a pool, the ability (and experience) to renovate a house to be exactly what I want, and a great location in Scottsdale after less than 18 months of my version of house hacking.

There are tons of ways to house hack, and since the multi-family inventory is so low, getting creative can really pay off and be much less stressful (and enjoyable) than trying to fight for every multi-family in Mesa that pops up. Plus the ability to be close to work is unbeatable. Happy to brainstorm with anyone reading this or advise as a local real estate agent.

Hi Keith,

I moved out here a few years ago and love it though the summers can be brutal until you get used to it. In regards to realtors, I've worked with Doug McVinua who's a Bigger Pockets member and knows the area and what he's doing in investment properties.

There are very few good multi-families, I'm currently working on developing a number of multi-family properties but I know you're looking for a reno opportunity. Everyone seems to be sending out wholesale deals but there's very few actual deals out there. I'd look at single family, you'll have  a better chance of getting into something.

Originally posted by @Keith Ralleca :

Hi guys! An avid fan here. 

I'm set to relocate to the Phoenix metro area within the next couple of months and I'd like to get your insights in this market. I have been preparing for this day to come to finally purchase my first investment. Looking into house hack (with small family) and definitely build my portfolio from there. 

I intended to get into multifamily homes, if they exist, but come to find out there's not much available as the construction has been decreasing for the past several years. Even if there are, its located in a high crime areas which I think is not worth the risk for my wife and kid. Especially if I'm at work most of the day. 

I will be working in the downtown area and would like to live as close as possible. Where would you recommend I should look into that is family friendly town? Good rental market? 

Also looking for vetted Realtor (investor friendly) that could help me in my search. I have high hopes that you guys will help a novice investor to the right direction. 

Thanks in advance! 

 Hi Keith!  I wanted to check in on you and see how things are going since you made your decision to move to Phx.  Can you share your experience so far?