Visiting Phoenix in 2 weeks, what neighborhoods should I explore?

Question

Visiting some family in Phoenix soon. I live in LA, am new to REI and have been in the learning and research phase. Most interested in buy and hold, brrrr, 1-4 units that cashflow.

I'll only have the weekend, but would love to get some time in walking neighborhoods. Where should I explore? Up and coming areas? The freeway extension that bypasses downtown, does that go through anything interesting? Is there any new light rail planned? what's the scoop? :)

Christopher Sanchez · Answer

@Ryan Bertolami In the Phoenix market it is getting harder and harder to find strong positive cash flow properties as the prices have gone up so much its hard to make the numbers works. I have found deals over the last year for my investors but they require a lot of searching and being able to pull the trigger very quickly as they go almost instantly. In the last few weeks I have found deals in Tempe and the North Phoenix areas, but these deals require cash only as the properties do not qualify for financing. If you are wanting to leverage you money and do financing it will take patience and diligence.

Fix and flips are going to be a good route as well depending on how much capital you have but most of these deals with be pre mls.

If you would like to discuss more in detail, just send me a PM and I would love to give you more insight.

Good Luck !!

Fix and flips are going to be a good route as well depending on how much capital you have but most of these deals with be pre mls.

If you would like to discuss more in detail, just send me a PM and I would love to give you more insight.

Good Luck !!

Bryce Deeney · Answer

multi-units are generally only positive cash flowing if you're buying them pre-MLS. for SFHs, check out the suburbs (i.e. Cave Creek, Glendale, Buckeye, Maricopa County, Mesa, etc.). I'd also check out south of downtown. Lots of deals being made there over the past 24 months. If you ever are looking to partner with someone locally, shoot me a PM. Best of luck!

Bryce Deeney · Answer

@Ryan Bertolami look near Baseline Road. D neighborhood quickly on the up. I am a local investor.

Account Closed · Answer

Depends on what you want to accomplish and your budget. Finding 1-4 units is a little tough right now. Coming from LA CA you may find our neighborhoods "tame" ;-) but there are certainly neighborhoods that don't make for good investing.

If you want "drama" in your investing, go it alone, if you want smooth sailing find an investor to work with that actually invests in the type of properties you are interested in. We can have coffee if you have an interest and driving the neighborhoods gives you a better perspective. Here is a deal I did that shows what kinds of returns you can achieve.

https://www.biggerpockets.com/forums/311/topics/780022-3-ways-to-wealth-in-real-estate-cashflow-flip-hold-here-s-how

Andres Cardenas · Answer

If you decide to look in the south phoenix area anywhere from 24 st to central ave on baseline or southern are pretty good bets as far as upcoming areas. Lots of new construction and new stores being built. I would suggest staying away from 19 ave.

Drew Hittner · Answer

@Bryce Deeney Still looking to partner with anyone?

Ryan Bertolami · Answer

Account Closed  That's an interesting strategy. It does seem like some creativity is needed for the Phoenix market. I'll need to read through that again to fully wrap my head around it.  Being new and looking at a tough market out of state, we're certainly not looking for any drama :)

Account Closed · Answer

It's actually pretty easy when discussed over a cup of coffee. And, South of downtown is where a lot of the drama is. ;-)

Ryan Lee · Answer

Maricopa is up and coming. Glendale is a little rough but north of the highway are good markets. Tempe might also be another good market.

Ryan Bertolami · Answer

@Bryce Deeney  Based on my research so far, Phoenix definitely looks like a tougher market than some others for what I'm looking for.  I may be open to fix and flip opportunities, but as a way to raise capital for buy and holds. Any opportunity there? I hear the margins are pretty slim.

Thanks for the neighborhood suggestions, a few weren't even on my radar. Will check out south of downtown for sure. Are you talking South Mountain area?

Are you investing in Phoenix?

Thanks again!

Visiting Phoenix in 2 weeks, what neighborhoods should I explore?

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