All Forum Posts by: Logan Williams

The Arizona short-term rental (STR) market poses certain challenges, particularly due to the high vacancy rates this past year, even during the busiest seasons like the Super Bowl and the Waste Management Open. Many of these vacant properties are from individuals seeking quick cash, resulting in low or no ratings and competitive pricing. This can be frustrating for hosts who have been in the market for a while and have earned a reputable status.

On the other hand, STRs in northern Arizona offer a different scenario, with a lower price point and the ability to attract guests throughout the year. This is due to the region's diverse attractions, such as hiking, water sports, and the allure of escaping the summer heat. Additionally, during the winter, guests are drawn to the area for skiing and snowboarding.

In contrast, the demand for STRs in Scottsdale and Phoenix primarily peaks during the winter and spring seasons. These locations may not have as much appeal during the hotter months, limiting their potential rental income. 

I represent an investment brokerage here in Scottsdale but we specialize in off-market opportunities across the state, happy to connect and answer any questions.

We are seeing the same thing in Arizona, many investors have changed their strategies to buy and hold properties around the Taiwan Semiconductor Manufacturing Company currently being built in north Phoenix. 

While each of the cities you mentioned has its own unique characteristics and investment opportunities, I work with investors across Arizona so would be happy to answer any questions. Here's why it might be worth considering:

1. Strong Real Estate Market: Arizona has experienced steady growth in its real estate market, making it an attractive destination for investors. Cities like Phoenix and Tucson offer a diverse range of properties suitable for long-term rental strategies.
2. Cash Flow Potential: Arizona's real estate market presents cash flow opportunities, with many properties available under $150,000 per door. This affordability compared to high-priced areas like Los Angeles can easily generate positive cash flow for investors.
3. Population Growth: Arizona's consistent population growth drives demand for rental properties, providing a steady pool of potential long-term renters. This contributes to the stability and profitability of your investment.
4. Investor-Friendly Environment: Arizona is known for its favorable landlord-tenant laws and business-friendly environment. This simplifies property management and provides legal protections for landlords.
5. Proximity to Los Angeles: Since you already live in Los Angeles, investing in Arizona offers the advantage of being within a manageable distance. You can easily visit and manage your properties without the need for extensive travel or long-distance property management.

Hey John, welcome to BP, I work with an investment brokerage here in Scottsdale, we typically focus on off-market SFH but depending on the number of doors you were looking for, would love to connect and answer any questions you might have. Typically we work with anything from 3-20 doors.

Looking to get some feedback from Multi-family investors around the valley:  In the current market, do investors typically look for already cash-flowing units, or do investors prefer the ability to add value through renovations and raising rents? 

Quote from @Scott E.:

Quote from @Logan Williams:

I tell my investors to be on the look out for Glendale properties, with the next Super Bowl coming to Az.

 That is horrible advice and makes me cringe. You are telling your clients to invest their hard earned money in an area that is hosting a 3 hour football game next year?

Hey Scott, thank you for the feedback. I probably should've given this post more color.
Glendale has been a target for many of my investor clients for a few reasons:

1. The entry price point is significantly lower on the west side (more opportunity for mom & pop investors, as well as the folks who have the capacity to take on between 4-5/monthly). I'm sure you'd agree that there's a lot of value in having greater access to affordable inventory in close proximity to your other projects to keep your crews' hands busy and to make your business easier to manage.

2. According to my AirBnB clients (many of which are much more successful than I): They'd be good properties to hang on to in the short term. You could cover a year's worth of your mortgage in 2 weeks if you position yourself correctly come time for the big game. Many of them expressed to me that they'd like more inventory around Westgate and near Cardinals Stadium. I've found that many of the aforementioned neighborhoods don't have an HOA, which is where they typically run into trouble with their rentals.

3. Some of my more patient, savvy, and creative clients decide to mix the two strategies above, and will hang on to these as rentals/airbnbs for about a year (get about a years worth of appreciation/equity for essentially free), and let the active Flippers in the area drive prices up around them, and then fix/sell in about a years time - forcing a much greater return on their investment.

4. With many end buyers being priced out of the East Valley, I've found that many of them are considering Glendale/West Valley due to the fact that their dollar gets them a lot more house and they can still enjoy being in the mix near Westgate. I can pay $800k for a 1200 sqft house with a pool in saturated South Scottsdale, or I can pay $500k for a 2400 sqft house with a pool on half an acre in Glendale. It seems like a no-brainer for those who value space/size over being in the mix.

Additionally: I'm sure you're aware of the interest rate situation and how that will affect the buying power of those looking for a remodeled SFR.

5. I've found that much of the Glendale inventory is 1980s builds or newer; as an investor I'm sure you understand the value of not having as many surprises in the walls/plumbing compared to central phx 1940s builds in that price point.

If you have any thoughts on this topic, I'd be happy to discuss further. At the end of the day I have no desire to argue or "be right" - the more informed I am, the better I can serve my clients and customers.

As a former student at the U of A, big rival games, homecoming, and greek life family weekends are a huge influx of people looking for lodging, with only a few hotels in close proximity to the University, STR's that are attractive can be few and far between. More long term rentals are also very attractive to students, I noticed that less people seem to be staying in apartments and are instead looking to move into houses around campus.

I would recommend using the larger firms if this is something you are going to pursue long term, as they typically have more available reps that you can build a personal relation with and be ready to run numbers for you, even when they are out of the office. 

I tell my investors to be on the look out for Glendale properties, with the next Super Bowl coming to Az.