My net worth is around 500k to 1million i want to invest in phoenix because San Diego is very expensive and California as a whole is not landlord friendly. Should I do multi family or single family or even commercial I am very new to real estate and have very little experience in business. What should I do?
My net worth is around 500k to 1million i want to invest in phoenix because San Diego is very expensive and California as a whole is not landlord friendly. Should I do multi family or single family or even commercial I am very new to real estate and have very little experience in business. What should I do?
Hey Jacob! I'm a local realtor in the Valley and specialize in helping investors - would be more than happy to discuss possible options. Feel free to DM me.
My net worth is around 500k to 1million i want to invest in phoenix because San Diego is very expensive and California as a whole is not landlord friendly. Should I do multi family or single family or even commercial I am very new to real estate and have very little experience in business. What should I do?
My Riverside client simply let's me find the properties and he selects the ones he wants, while I teach him how to buy creatively. There are all kinds of ways of investing remotely. I'm sure a ton of realtors will jump on offering their services. But, I would go with someone who teaches you what is a good investment and why and what to avoid.
Realtor · Phoenix, AZ · Member since 2021 · 523 posts · 239 votes
7mo
Hey Jacob, I shot you a DM to talk over the phone as that might be easier. I have seen CA landlords pursue multifamily, single family, and Airbnb in Phoenix in the last 12 months. It really depends how active of an investment you would like compared to the overall yield. Do you have previous RE investing experience? That will also dictate what might be the best first investment for you personally.
Hinton, WV · Member since 2026 · 1k+ posts · 373 votes
7mo
Phoenix is solid for cash flow vs San Diego, you're right about that. One thing that helped me figure this out - before you pick property type, get clear on your monthly cash you can actually deploy. Like if you've got $500k net worth but only $3k/month to invest, that totally changes the game. Single family's usually way easier to manage from far away than multi, and commercial needs serious business chops. What's your monthly investment budget looking like?
Hey @Jacob McDonald if you are looking to invest in Phoenix, I'd recommend you reach out to @Jeremy Holden. He's an investor/realtor in the area. He helped me with my first property and we've since worked on multiple investment deals together.
Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
7mo
@Jacob McDonald My suggestion would be to develop your metrics....
1. what type of investor are you? buy and hold or flipper?
2. How will you source your deals(If you are thinking to scale long term)
3. Underwriting real estate deals. You should be doing this constantly.
Don't simply pick a market based on "liking" it or the price point. The market should lend itself to your principles. Otherwise you can find yourself trying to fit a square peg into a round hole.
Property Manager · Phoenix, AZ · Member since 2024 · 523 posts · 196 votes
7mo
@Jacob McDonald, since you are new to real estate and looking to invest out of state, I would focus on keeping your first deal as simple as possible. Before deciding on single-family, multifamily, or commercial, it helps to get clear on your goals and your comfort level. Are you mainly looking for steady cash flow, long-term growth, or just to learn the business without taking on too much risk?
For most first-time investors buying out of state, single-family or small residential properties tend to be the easiest place to start. Financing is simpler, management is usually more straightforward, and mistakes are less expensive if you make them. Multifamily and commercial can work well, but they usually require stronger underwriting skills and more operational experience.
Phoenix also has a lot of different submarkets, and they can perform very differently. Spending time there, driving neighborhoods, and learning where rents actually support the prices will give you much better insight than relying on listings alone.
Build a solid local team, but make sure you understand why a deal works before you buy it. If you can clearly explain the numbers and the risks, you will feel much more confident pulling the trigger.
Focus on learning and protecting your capital on the first deal. Once you have some experience, it becomes much easier to decide how to scale and what property types make sense for you.
Lender · OR ID AZ CA WA CO NV TN MT · Member since 2018 · 598 posts · 312 votes
7mo
Hey @Jacob McDonald, welcome to BP! I would higly recommend reaching out to @Jeremy Holden and connecting with him. He is a local investor and realtor in Phoenix, that is a must to have on your team!
For a first out-of-state investment, starting with single-family or small multifamily in stable B/C neighborhoods usually makes the most sense—it’s easier to manage, finance, and learn from than jumping straight into commercial. Focus on steady rental demand, conservative underwriting, and having a reliable local team so your first deal runs smoothly and scales safely. Once you nail one clean deal, you’ll see how to grow without unnecessary risk.
My net worth is around 500k to 1million i want to invest in phoenix because San Diego is very expensive and California as a whole is not landlord friendly. Should I do multi family or single family or even commercial I am very new to real estate and have very little experience in business. What should I do?
Hey Jacob! I'm a local realtor in the Valley and specialize in helping investors - would be more than happy to discuss possible options. Feel free to DM me.
I want to manage from San Diego but also want to be able to get there quickly.
"I want to manage from San Diego but also want to be able to get there quickly."
You may want to also look at the Prescott/Quad City area. An extra hour drive, but a lot of opportunity up there. Very popular among Cali transplants due to the 4 season weather.... Although I think prices have gone up too much over the past 5 years, I would bet there are still deals to be had, esp some old fixers in the area just west of downtown. Good for STRs too...
Lender · Los Angeles, CA · Member since 2018 · 67 posts · 35 votes
7mo
If you’re investing out of state, realistically you’re going to need a solid property manager, especially being new to real estate investing. Don’t underestimate how hands-on this can get without boots on the ground.
Arizona isn’t a bad option, but don’t default to Phoenix just because it’s popular. There are markets nationwide that offer stronger cash flow and better entry points if that’s your goal. Start with your strategy first (cash flow vs appreciation vs scale), then pick the market and asset class that align with that — not the other way around.
If you want to go deeper on strategy or run through numbers, shoot me a PM.
My net worth is around 500k to 1million i want to invest in phoenix because San Diego is very expensive and California as a whole is not landlord friendly. Should I do multi family or single family or even commercial I am very new to real estate and have very little experience in business. What should I do?
Hey @Jacob McDonald, welcome to BP! I would higly recommend reaching out to @Jeremy Holden and connecting with him. He is a local investor and realtor in Phoenix, that is a must to have on your team!