Also your rental application and approach impact on renting. Some of the large compnies have really hard credit policies that eliminate good tennants. As a long time landloard, with different formats, it is always a challenge to do it right.
Do your due diligance, and good renting.
If people were clamoring to live in a triplex in Mesa, they wouldnt be selling for 50k. You are competing with endless amounts of vacancy at 'luxury' apartment complexes that were built recently, that have resort style amenities. Your doing the right thing, be cautious and do your due diligence.
As I reread you inquiry, your title talks about triplexes, yet some of our answers are based on houses and not mufti-family. Rental rates depend on location. If you pay between $16,000 and $30,000 per door (auction or MLS) my experience says you will rent between $350 and $550. One fourplex I have available for sale has full occupancy (100-88%). When the rent was $550 50% occupancy, at $450 near %100 occupancy. This was in S. Phoenix. This was also true in Mesa. Quality and Location effects price. These are on the lower end. Go near ASU and expect much higher rentals and expect to pay higher purchase price to, yet get the same returns.
It is probably easier to get you answers with a phone conversion.
Jason Whaley, GRI,SFR,CDRS
RE/MAX Homes & Investments
The spaces that sit vacant are simply over priced for the market or need to be upgraded to attract tenants. The tenants in any price range can now pick from aged properties or remodeled. The days of "anything rents" is past. My advice is ask for a rental price you can settle for. Don't over price. Make sure your asking price is in mid-range for that local market and the property shows well. Be prepared to market extensively to get exposure.
In El Mirage I see MLS listings at $850 when the market is $750 for a 1100ft2 house. A vacancy for 30 days cost you $850. There is money to be made. You need to be smart and chose the right opportunities.
What rate of return (cash on cash) are you expecting in today's market?
Redfin, the site I use here in CA, has a Q&A forum almost completely investor/buyer driven. So I was hoping for some additional insight from folks like myself :) Anyone?
My last 4 investment clients all rented very fast, you have to determine the renter you want and target the correct property to purchase. A glut of super low priced and less demand for that market right now.
How much are you wanting to invest? Do you look at single family or typically stay in multi?
Looks like you're still thinking about investing in our market...Well, that is good news. The real estate market in the Phoenix area has changed drastically over the last couple years. Many people are losing their homes and a lot more are finding that it is actually cheaper to rent at this time than to own. I think one of the reasons why townhouses and apartment style residences are not doing so well is because families can now get into a single family house for a lot less than they probably could in times past. We are seeing a great deal of activily in the single family rental market and probably not as much in the townhouses/apartment style homes.
The benefit though with the apartment style/townhouses is that they are so much more affordable now and could be a great investment for the long term. For instance, there are triplexes and fourplexes selling for $60,000 or less in many areas of the Valley. For someone looking for a long term investment, even if only 2 of the units are occupied at a time, that should cover the mortgage and taxes. So for someone who wants to hold on to these properties for the long term, when the market does turn around, they will be so much better positioned to make a great return on their investment.
My suggestion to anyone looking to invest in real estate in the Phoenix area will be to think loooonnnnggg term! The benefits may not be apparent immediately, but history always repeats itself and our market WILL bounce back and some investors would not have done badly for themselves at all!
Well, hope this helps. Let me know if I may be of any further help. YOu can reach me directly at 480 797 9831 or toll free at 800 766 6343. Have a great night.
Coldwell Banker Residential Brokerage
The reports are that Arizona is still expected to be a growing state, although slow with the present 10% unemployment. The largest factor? Still a glut of investor homes on the market that cannot be flipped at a profit, so currently there is an excess of rentals.
Areas within the central commute corridors and around ASU still rent well.
Triplexes may not be as desirable for a renter in this market when a private home can be rented for a similar rent.
Arizona Homes and Land