Home Buying in Phoenix>Question Details

Babysteps, Home Buyer in Phoenix, AZ

Looking to spend $250-400k on a single family home. What is the best area for price appreciation? What is the best area for great rental income?

Asked by Babysteps, Phoenix, AZ Wed Aug 8, 2012

There are some new, cheaper properties in far north Scottsdale and Fountain Hills. Do these areas have good potential or should I stay in central Scottsdale? Or should I avoid Scottsdale altogether and focus on less expensive areas like Gilbert, Mesa and Phoenix?

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Answers

8
Babysteps,

If you are looking to spend $250 to 400K on an investment property, then you should consider a commercial property (Multifamily, office, retail, etc.) since you will receive a better cash flow / return on investment. Commercial properties produce a much higher cash flow than a single family home in this price range and you can hire a property manager to take care of the day to day management of the property.

I would love to share more information with you about commercial real estate investments in the Phoenix area. Please give me a call to discuss at your earliest convenience.

Sean Heideman, Broker
Position Realty
Office: (480) 213-5251
0 votes Thank Flag Link Thu Aug 9, 2012
Babysteps

There are great areas in all the cities that you mentioned. The answer will depend upon what you want, what you are trying to stay near, how far a commute you want, etc. What you should do is to talk to a competent and experienced Realtor so that they can get to know more of your wants and needs and then they could answer this more accurately. Some areas may end up with stronger appreciation than others but the commute may be more than you care to drive.

As far as a rental areas, this will also depend. Do you want the rental property to be close to where you are going to be living. If you self-manage, I would recommend something not to far from you. If you put it into a property managers care, then the distance is not that important. Again, the best thing will be to discuss this with a Realtor that is looking out for your best interest.

If we can be of assistance in your home search, please do not hesitate to contact us. We would love to help.

Best Regards,

Brenda

Ron & Brenda Cunningham
West USA Realty
602-980-3133
Ron 602-499-0694

*** Recognized in the Phoenix Business Journal as "One of the Top 50 Realtors in the Valley" ***

Search the Official, Active, FlexMLS for homes like a Realtor through our website for FREE:
http://www.CunninghamHomesAz.com
0 votes Thank Flag Link Thu Aug 9, 2012
Hi Babysteps,

As you can see from the responses to the various questions you asked, there are many agents willing to help you and provide information. You asked very good questions about many aspects of moving here and getting acclimated. The appropriate answers would be too long for this venue. A couple of quick points: Regarding what area is best, that depends on many factors, not just price, including what you want in commute time, schools, everyday conveniences and much more. The best assistance anyone can provide is to first ask questions and truly listen to your answers. I would not suggest anything without really know what makes you tick and drives your decision. It isn't about what the agent wants, but what you want.

Regarding the market and where it is headed, I wish I had a crystal ball. You can talk to ten different people and get as many answers. Obviously we are in a strong recovery now, but there are many factors that may stabilize that recovery or maybe even reverse it. Regarding rentals, I (or any agent) can search MLS for rentals. If you are looking for an unfurnished rental for 6-12 months it will be more affordable than furnished. As noted in some other replies, we are headed into peak season and furnished rentals will be much higher.

If you plan to interview agents to determine who can do the best job in assisting you, I hope that I will get the opportunity to be one of those you speak with. Please feel free to contact me.

Adam Tarr PC
Citywide Real Estate
480-236-7374
0 votes Thank Flag Link Thu Aug 9, 2012
Hi Babysteps,
Gilbert area has a good rental income and the properties there are affordable. North East Phoenix area also has good rental income and the properties are very affordable.
Grace Adewumi
Realty One Group
602-769-0890
gracea@realtyoneaz.com
http://www.house2buyorsell.com
0 votes Thank Flag Link Thu Aug 9, 2012
Baysteps

You have ask a lot of questions tonight that have overlap.

The answer depends on many factors that we could answer for you after further discussion. Where are you located now? What do you want around you? Is your commute time most important or the area and house?

Scottsdale has some great areas to live in but at a price. You can buy a nice home in Gilbert/Chandler for $250-400,000 and have a newer really nice home in a great area for that money. Gilbert has over the years had a higher median income than Scottsdale so don't discount the SE Valley.

The best news is that we have choices, now lets find the one that works best for you!
0 votes Thank Flag Link Wed Aug 8, 2012
You are asking a multitude of questions on Truilia and each have very distinct answers when asked separately! what you are not sharing is how old are your children (earlier comment about moving prior to school starting), what is important in the home itself (size, amenities, closeness to various things.etc) and your hold time frame before selling.

In general, the market is improving. in fact, it is jumping up and leading the Nation in recovery-- IF it is a true recovery which none of us can honestly say. Indications are we have hit the bottom and are moving up. The indicators more people are watching include the price increases, the limited inventory, the slow down on foreclosures (increase in successful short sales) and the building permits.

Scottsdale schools start next week I believe, PV Schools started this week so if your plans were to arrive before that, start driving(-: Rentals can be found on most realtors websites and on craigslist if you want to go direct to a landlord and not use an agent. the Rental market has slowed down a little the past few weeks. I do have a rental in north Scottsdale. but the landlord does not want to do a 6 month lease. If you are looking for a furnished lease please remember that our HIGH season is November to April. Prices can be as much as 3 times the regular rental amount.

I can help you set up your rental search as well as the purchase search when you are ready. You may go explore on my search screen of my website as well.

Melissa Schwartz, e-PRO
Associate Broker
Realty One Group
Web Reference: http://AZFineLiving.com
0 votes Thank Flag Link Wed Aug 8, 2012
Try north Peoria area. It has picked up quite a bit. Vistancia & Cibola Vista have taken off. Builders are selling the homes like hotcakes. Price ranges match your cirteria. Vistancia specifically in geared towards family life with the beginnings of being a self sufficient community that exist in a very nice area. If interested in more info, you can contact me, Aaron Sanchez, HomeSmart, 623.640.0612. Good luck in your venture.
0 votes Thank Flag Link Wed Aug 8, 2012
If you are looking for price appreciation, I would stick to the Scottsdale and Paradise Valley areas. The SW Valley on a whole has had a 25%+/- appreciation in price in the last year alone. Inventory in the area is also at an all time low, with about 42% less inventory than reported last year. Not only does this contribute to the increase in pricing but it also has created a seller's market in our area. Areas like Scottsdale and Paradise Valley have more of a built in appreciation due to quality of life, crime rates, shopping/dining and education system. It is likely that areas like Gilbert and Mesa will also appreciate in the coming years but you have to do research on specific neighborhoods to see where you will receive the most bang for your buck. As far as rental income is concerned, it depends on your target market. Single family detached homes with 3 bedrooms and 2 baths and 2 car garage can range between $800-$2000 depending on the neighborhood you purchase in. There are certainly areas of town that you can rent for more.

If you have an idea of how much you would like to receive in rental income vs. the cost of the home that you would like to purchase, I'd be happy to do some research for you at no charge. Let me know and if you are still in the "window shopping" stage, stay in touch and feel free to ask any additional questions at any time!

Neema Enriquez
Realtor
Website: http://www.realliving.com/Neema-Enriquez-real-estate-agent
Facebook: https://www.facebook.com/NeemaEnriquezRealtor
Twitter: @PHXRealEstate4U
Mobile: 202-491-3541
Fax:602-391-2275
0 votes Thank Flag Link Wed Aug 8, 2012
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