Phoenix, AZ · Member since 2020 · 2 posts · 1 vote
Hi, I want to start investing a property in Phoenix/North Scottsdale area. It can be my primary, but I want it to be able to generate passive income for me, what’s a good option? Airbnb? I plan to invest a 400-500k property if that’s enough for this area in this market. If not, what’s your advice? Thank you in advance for reading and replying me.
Real Estate Agent · Scottsdale, AZ · Member since 2018 · 412 posts · 366 votes
2y
Hi, Jessica.
If you need a primary residence and want to generate income, house hacking would be a good option. Buying a single family home and having your roommates pay rent to cover as much of your mortgage as possible is a good way to build equity using OPM (other people's money).
At your under $500k price point, your best option would be north Phoenix on either side of State Route 51. This makes commuting easy and puts you near shopping and the redeveloping PV Mall.
There is likely to be at least a slight increase in inventory in Q1 as some people wait until after the holidays to put their homes on the market. So that's good news for buyers.
Realtor · Phoenix, AZ · Member since 2021 · 271 posts · 115 votes
2y
Hey Jessica!
As mentioned previously, house hacking is an excellent strategy to start out. It truly kills many birds with one stone. It'll allow you to have others pay your mortgage & obtain a place of your own that you are gaining equity in. Then once you've lived in it for at least 1 year, you can then go purchase another primary residence based on your DTI (debt to income) ratio. Depending on your income, you will be able to rinse and repeat this process a few times.
Overall I'd also suggest a versatile approach for investing. For example, instead of pigeonholing yourself to just AirBnB (which is down in PHX atm), I'd suggest looking at properties that depending on the market, might fit as a long term rental as well. Based on the climate of the market, you'd be able to pivot when necessary.