General Area in Phoenix>Question Details

Payal, Real Estate Pro in Los Angeles, CA

I am looking for cash flow rental property in Phoenix area. I would like to get an idea of the neighborhoods that are safe, professional and upcoming.

Asked by Payal, Los Angeles, CA Thu May 5, 2011

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7
Mark Gable’s answer
Though there are areas in nearly every city that meet your criteria, I'd have to say the best match is Gilbert. The cities in the East Valley have much higher income levels and too many west side communities are hit or miss.

Gilbert is nearly the same size as Scottsdale and is growing much faster, has a higher household income level, has lower home prices, and the average age is 30 compared to 40 in Scottsdale. I'm not knocking Scottsdale, in fact, I use Scottsdale because it's a fine city and I wish to demonstrate what a gem Gilbert seems to be.
Hope that helps.
0 votes Thank Flag Link Mon May 9, 2011
BEST ANSWER
The timing couldn't be better to purchase a rental home in our market, as you have obviously realized. We have a Property Management division and are working on a similar strategy for many investors right now. There will be lots of opinions on areas to focus on if you ask realtors and other investors. The true growth that Maricopa County (where Phoenix is located) is happening to the West (West Valley cities). This is due to the fact that the areas to the East are bordered by both Indian Reservation land and State Preserved land, so the growth is forced West. Surprise, Avondale, Goodyear and Buckeye are all on the top 10 fastest growing cities in the US. ASU did a study that predicted by the year 2030, the center of Phoenix, in terms of growth and population would be in Buckeye. When you couple these stats with the new build growth (and tremendous price drops) that occurred in the past 5 years, you will see that you can get a lot for the money AND they are renting very quickly with great quality tenants. If you would like more information on any of these factors, I am happy to share and discuss in more detail.


Shannon Cunningham Smith
AZ PERFORMANCE REALTY TEAM
Keller Williams Professional Partners
p:602.330.3025
f:602.325.2297
Shannon@azperformancerealty.com
http://www.azperformancerealty.com
0 votes Thank Flag Link Thu May 5, 2011
It comes down to many factors. The biggest one for me is quality of tenant with the least amount of turnover.
As you know, we cannot steer people in that way.
However, certain parts of the southesat valley continue to grow and thrive with new shopping and families.
0 votes Thank Flag Link Thu May 5, 2011
It depends on many factors. But generally there is no magic formula and I will be very careful with promises of over the top returns. More desirable areas will command higher prices, and less popular areas will have the lowest prices. It all depends on what kind of investor are you, your price range and many other factors.

It is actually illegal to steer clients towards one area or the other, and I will again be careful about people who will try to steer you, even before getting more information from you. Get a good buyers agent who will listen to your needs and will advice you based on your needs, not theirs. A good agent will provide you with places where to get the information you need, so you can make an informed decision.


Carlos J. Ramírez, PC, ABR, CNE
RealtorCarlos@gmail.com
Associate Broker/Realtor, HomeSmart –
Certified Negotiation Expert (CNE)
http://www.SmartAZRealty.com
0 votes Thank Flag Link Thu May 5, 2011
Would you be interested in a North Phoenix single family residence, generating $1,400 month cash flow, with an ROI of about 24%?

Richard Bazinet - John Hall & Associates
602-300-7007
0 votes Thank Flag Link Thu May 5, 2011
Since each investor has a different target market, exit strategy, budget, and risk comfort level, it is best to select a Buyer's agent to represent your interest that has experience and has a solid working knowledge of cash flow analysis to help you analyze and evaluate your options as you consider different properties.

We can't legally steer you to or away from a given neighborhood. If the question is crime statistics, I suggest http://www.azcentral.com/CrimeMaps/ as a helpful resource.

For appreciation potential, that is again a discussion for your experienced investor Buyer's Agent. So many variable go in tho that discuss that you will want to get into area details and historical data to dig out the information you need to make that assessment. While an agent might make suggestions, in the end you must make the decision based on your personal needs, wants and investment strategy. I also like to involve property managers in the discussion to get more than one opinion. Every investor is different, so no generic answer will be appropriate without lots of discussion and plenty of experience tossed into the mix.
0 votes Thank Flag Link Thu May 5, 2011
Almost any area can provide cash flow properties. Area that is going to work for you will depend on your investment strategy and style. As an out state investor, new homes may be more appealing as less expected maintenance required. As an investor myself, I diversify somewhat, but tend to focus on newer communities that are not too far out but yet moderate to average priced. I have had no problem seeing cash flow on anything up to $250K. On the higher end, less cash flow, but much less headaches when it come to tenants and renting. The $100K to $150K areas see about the best cash flow vs. tenant issues while are set to provide good appreciation.

Multifamily can be a good source of cash flow, but I am not as optimistic about appreciation and they often have much higher turn over and more maintenance which can affect cash flow.

Real estate agents can not provide opinions on safe neighborhoods, but can provide resources for researching areas.

Feel free to contact me to discuss further.
0 votes Thank Flag Link Thu May 5, 2011
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