Investing in Phoenix/Scottsdale/Mesa Area Remotely

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Investing in Phoenix/Scottsdale/Mesa Area Remotely

Rajan Udeshi
Orange, CA · Member since 2015 · 8 posts · 8 votes

Hi all!

This is my first post, I am excited to be part of the community.Very similar situation to a previous post here..

I am a Chicago transplant living in Orange, California. My fiance and I have started looking to purchasing an additional property in the area for long term cashflow. We are focusing on Phoenix/Scottsdale area due to the diversified economy, 2020 forecast, and relative affordability to purchase multiple assets over the next couple years. We're looking for a buy and hold long-term rental, unless appreciation justifies selling :). We will look to leverage a property manager once I have something under contract. Any advice/insight into areas, investor-friendly realtors/wholesalers, and lenders would be fantastic! 

Here's what i'm hoping to learn.

1. Who should I be working with as a remote investor? ( I plan on traveling there once I have a plan in place) ( Local agents please feel free to PM me)

2. What submarkets make the most sense to research? ( i'd like to find something relatively turnkey, cashflow positive and under 160K)

3. Is my budget reasonable? My goal is to put down 20% and go conventional route for financing.

Looking forward to hearing your replies!

Raj

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Account Closed
Specialist · Paradise Valley, AZ · Member since 2018 · 3k+ posts · 2k+ votes
6y
Originally posted by @Zeeshan Qureshi:

I’m from NY and I too have been interested in the Phoenix market. I’m looking for a 2-8 family if possible. I don’t see anything on Redfin or trulia that can cash flow, what am I missing?

 You're not missing anything except you're missing everything. It takes local knowledge right now in Phoenix if you want cash flow and a safe investment.

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  • Nathan Crumback
    Grand Rapids, MI · Member since 2017 · 35 posts · 50 votes
    6y

    Hi @Rajan Udeshi, welcome to the community! I don't have any expertise in PHX but you might find it helpful to connect with some members on the local forums for Arizona: https://www.biggerpockets.com/forums/546-arizona-real-estate-q-a-discussion-forum

    Best of wishes to you and your bride to be!

    1Reply
  • Account Closed
    Specialist · Paradise Valley, AZ · Member since 2018 · 3k+ posts · 2k+ votes
    6y
    Originally posted by @Rajan Udeshi:

    Hi all!

    This is my first post, I am excited to be part of the community.Very similar situation to a previous post here..

    I am a Chicago transplant living in Orange, California. My fiance and I have started looking to purchasing an additional property in the area for long term cashflow. We are focusing on Phoenix/Scottsdale area due to the diversified economy, 2020 forecast, and relative affordability to purchase multiple assets over the next couple years. We're looking for a buy and hold long-term rental, unless appreciation justifies selling :). We will look to leverage a property manager once I have something under contract. Any advice/insight into areas, investor-friendly realtors/wholesalers, and lenders would be fantastic! 

    Here's what i'm hoping to learn.

    1. Who should I be working with as a remote investor? ( I plan on traveling there once I have a plan in place) ( Local agents please feel free to PM me)

    2. What submarkets make the most sense to research? ( i'd like to find something relatively turnkey, cashflow positive and under 160K)

    3. Is my budget reasonable? My goal is to put down 20% and go conventional route for financing. Looking forward to hearing your replies!

    Raj

    Hi Raj, Your Comment: "What submarkets make the most sense to research? ( i'd like to find something relatively turnkey, cashflow positive and under 160K)

    Probably not in California, unfortunately.

    But, I dunno. . . You can get two Turnkeys for that amount plus learn how to do what I do. I guess it's just a matter of knowledge. Kind of like this example I did.

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

    Caution: I mean ummm, Disclosure: I sell Turnkey's In Phoenix, Glendale, Mesa, Scottsdale to CA Investors

    1Reply
  • Gary MacDermidPro Member
    Investor · Phoenix, AZ · Member since 2015 · 27 posts · 9 votes
    6y

    Raj- To get a good house in Phoenix at 160k in a decent neighborhood you would need to be making a ton of offers or going off market. 160k is doable here, but having a budget of 200k makes it easier. There is high demand and low inventory. I can refer you to a few lenders if you decide to move forward. On average with 20-25% down and rates hovering above 4% you should be able to clear $500-800 per house per month using lease options as opposed to a straight rental.

    I will actually be in Orange county at the end of the month for the annual noteworthy investor summit if you want to talk more.  Good luck!

    1Reply
  • Zeeshan Qureshi
    Member since 2020 · 2 posts · 1 vote
    6y

    I’m from NY and I too have been interested in the Phoenix market. I’m looking for a 2-8 family if possible. I don’t see anything on Redfin or trulia that can cash flow, what am I missing?

    1Reply
  • Account Closed
    Specialist · Paradise Valley, AZ · Member since 2018 · 3k+ posts · 2k+ votes
    6y
    Originally posted by @Zeeshan Qureshi:

    I’m from NY and I too have been interested in the Phoenix market. I’m looking for a 2-8 family if possible. I don’t see anything on Redfin or trulia that can cash flow, what am I missing?

     You're not missing anything except you're missing everything. It takes local knowledge right now in Phoenix if you want cash flow and a safe investment.

    3Reply
  • Mike Anderson
    Member since 2020 · 13 posts · 13 votes
    6y

    Hi Raj,

    I been investing in Phoenix for about the last 10 years, now have 25-30 properties.   I am a very active investor here and love what I am doing so always doing research.

    My most successful properties have been in the West Valley.  Why?  Better cap rates, lower entry costs, many people from California moving to Phoenix and west side is closer ride back to Cali friends.

    Buckeye was named the fastest growing city in the United States (google it), and there lots of brand companies moving to Goodyear.

    For your price range the houses are gone, you have to move to condo's or townhomes.   Cap rates are not great in Phoenix as there are 200 people moving here "a day" but it's a good equity play.  You can find good caps but it takes digging.

    Goodyear, Peoria, Buckeye, and Apache Junction are hot.  

    2Reply
  • Julie Dunlap
    Investor · AZ · Member since 2018 · 30 posts · 23 votes
    6y

    To be honest, your budget is pretty low for the Phoenix/Scottsdale/Mesa areas. Our average home price is sitting pretty close to $350k. I just listed a 2 bedroom townhouse in the very sketchy part of town for $160k and we had 16 all cash offers in less than a day. Market rent on that would be $1100 max and it needed $30k of rehab. For me those numbers wouldn’t work at all. However, I am still finding some great off market deals in the $220-260k range. Feel free to message me if you’d like to chat. 

    0Reply
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