All Forum Posts by: Pamela Sandberg

@Brian Gerlach: Until March I would have said scottsdale, hands down. Many owners could pay their entire annual mortgage from 3 months of rentals in high season (the spring, with the Phoenix Open, Barrett Jackson and spring training). Of course COVID changed everything. A ton of owners sold right away rather than losing a single high season.

Of course, the prospects for next spring look much different. And places like Tempe have good, steady rentals all year long. Personally I would look toward downtown Phoenix, Chandler, Tempe, Gilbert. These have a little better diversity in rental options, which helps owners weather unexpected circumstances better.

The best advice I can offer is to understand your local market! Here in Phoenix, there are a few areas that are hot for AirBnB rentals. These areas have taken a hit during COVID, but tend to perform well otherwise. Scottsdale is really popular in the spring. Tempe is popular throughout the school year (parents, visiting professors, etc.) Start by learning about different areas around town and finding a place where (1) you and your wife actually want to live for 6 months to a year, and (2) has good potential for AirBnB rental.

happy to answer any questions I can about Phoenix short term rentals!

The only problem with this plan here in Phoenix is that small multis (anything under four doors) are very hard to come by. There is a lot of competition for the few that are available, and you'll be competing with a lot of investors (some of whom can pay in all cash). There are other ways of house hacking that work a little better here. One strategy is to get a property with a casita/in-law suite/etc. If you live in the smaller unit and rent out the larger house, you could have your mortgage paid and potentially cash flow a bit. There are some other creative solutions that can work. And of course, a quad isn't impossible - you just have to be prepared to move quickly when something comes available. 

Just to give you a few indicators on the Phoenix area: 

* Both the rental and sales market are strong. Vacancy is near zero in many parts of town. We had a bit of a dip with COVID (as did all markets), but we're already coming back based on several performance indicators. 

* Job growth projections are very strong in the coming years. Many big employers have already started investing in new work facilities. This means that the projections for both rentals and appreciation are strong for the coming years. 

Happy to answer any questions I can about the area!

@Emily Jane Arellano: it’s hard to say the ENTIRE American real estate market is a bad investment . Phoenix is already recovering nicely from a minor COVID dip, and our job growth projections are still strong for the coming years (which translates to a strong real estate market). Personally, I’m not afraid to continue investing here - cautiously, of course.

A few random thoughts: 

* In the East Valley, appreciation has been the biggest factor for many investors. I'd look at the areas that will have the best prospects for appreciation. Consider school districts, nearby amenities, etc. If you want to turn it into a rental, consider buying near the big employers. 

* A very experienced appraiser once told me that his valuations are affected more by beds than baths. Since then, I've been more inclined towards an extra bed over an extra bath (though of course this varies with the property, and you still need a functional layout with the square footage you have to work with). 

Happy to answer any questions you have about the area!

Always good to start with a primary residence if you are able to - it's better than spending money on rent!

House hacking looks a little different here in the Phoenix area, but it can be done. There is very little small MF (2-4 doors) on the market. There are, however, many properties with casitas/in-law suites/ADUs. This allows you to rent one part of the property while living in another, and still maintaining your privacy. 

The Phoenix market has been very competitive for some time now, but COVID has created some interesting opportunities that didn't exist six months ago. (One small silver lining of a terrible situation.) Happy to discuss these or other strategies that might work for you!

Yes, you can search for multis on the MLS, but they move REALLY fast.

Small MF (2-4 doors) are pretty hard to come by in the Phoenix area - lots of demand and not much inventory. As Paul said, it's difficult to find a deal. An alternative you might consider is house hacking with a casita/in-law suite. These properties can be a little easier to find, but you can still rent out a unit and live in the other. 

Happy to answer any questions!

I second what's been said about Phoenix: much more affordable, great job growth projections (which is good for the future of our real estate market), and close enough that you can fly or drive over from Cali without killing two full days of travel. Happy to answer any questions I can about the area!