Originally posted by @Jake Gandolfo :
Is rental property investing in Phoenix(or surrounding areas) conceivable at the current prices?
A little about myself: I am 23, and work for the fire department. I’ve always been interested in investments of all kinds. I recently bought the book “the book on rental property investing”. I’ll be honest I’m only on page 127 and plan to read it all and more Books no matter what. But what I’m seeing in terms of market prices around me makes me feel like there is no way I could get into a property and make any cash flow at the current prices. In the book he talks about the 2% rule. I’m not even seeing a .5% rule here in Phoenix!!! Can someone tell me that it is possible or that the market is just to high and I have to wait for a correction? I’m looking at single family homes as well as condos. Thank you very much in advance for taking the time to help a young man who is eager for knowledge out.
Actually, yes, most of the properties I sell Turnkey in Phoenix and AZ have anywhere from $500 to $700 a month positive cash flow. These are the ones I've picked up in the last 6 weeks that I am preparing to put out there for investors. You are competing with buyers from California and Illinois who recognize the value we have here, but don't let that bother you. It is actually a good thing to have a lot of interest in Arizona investing. I bought these "off market" which means they don't show up in the MLS. People in CA and IL have to dig to find this kind of stuff but those that are serious are competitive. Real estate agents aren't seeing these because I (and people like me) don't use the MLS. CLICK on the image to enlarge.