Market Conditions in Tempe>Question Details

Peter, Home Buyer in Tempe, AZ

There are some multifamily reo's near ASU. I assume students are lessors. The roi numbers seem to work. But would appreciate informed

Asked by Peter, Tempe, AZ Tue Jan 25, 2011

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Peter:

Multifamily prices are the lowest they have been in years so it is a great time to buy. Properties close to the light rail are very desirable especially for ASU students as ASU has expanded the campus to downtown Phoenix. The light rail makes it easy for students to commute between campuses.

I just helped some clients buy and sell some multifamily properties near ASU. Two of the fourplex buildings I sold were fully occupied so the buyer had instant income. The tenants are not always students though most are. One building had a tenant who has been there for 30 years!

REO multifamily properties will probably be vacant and need a lot of repairs. But if the price is right it would be worth the cost.

ASU properties are in high demand. I received multiple offers on my listings and some offers were higher than list price.

Please let me know if you want more information on multifamily properties close to ASU.
Thanks
Pat Hune
1st Southwest Realty
Search the REAL MLS from my website
480-703-1976
Web Reference: http://www.sellaznow.com
0 votes Thank Flag Link Tue Jan 25, 2011
Hi Peter -

The units near ASU make great rentals for the students. I sold multiple condos in 2010 to parents of students -- it was more affordable to buy a condo for the kids then to pay for them to live in the dorms. Many students look for alternatives to dorm life and the condos within 2 mile radius of ASU offer a great alternative. As Doug mentioned, many will need new carpet, paint, fixtures and even appliances. You will want to plan on cosmentic upkeep every couple of years -- as students will not be the type of tenants to stay on top of general upkeep of a home - but Tempe is always great for the rental market.

If you would like info on any specific complexes - please dont hesitate to send me a quick email or give me a call. There are even some complexes a little further than 2 miles I can suggest.

Christine
West USA Realty Revelation

602-750-0312
cmcmahon9@cox.net
0 votes Thank Flag Link Tue Jan 25, 2011
Peter

You are correct, the units in Tempe fairly close to ASU tend to see high occupancy rates. Many I have been around will rent in the spring for the fall class schedule. It is student housing so the probability of a slightly harder life is possible and you should plan for carpet and paint every few years.

Tempe is a great spot, what is the investment range you are considering?

Would your investment be cash or are you financing? I ask the question because some of the distressed properties are cash only sales due to condition of the property.

We will find both ends on condition, some will be be rehabbed with new carpet and paint while others may need carpet, paint, appliances etc. What would be your preference?

Doug McVinua
HomeSmart

Arizona Homes for Sale by a Guy from Iowa
Web Reference: http://www.McVinua.com
0 votes Thank Flag Link Tue Jan 25, 2011
Very good advice by Scott and Carlos, if you are not working with a local realtor to assist you that would be your first mistake. I do not know if you are looking to buy for cash but since this is an investment and I recommend to every investor not to put "all their eggs in one basket" you may want to put money down but not pay entirely for cash. By investing in this way you can buy multiple properties or you could pay off your one property when you feel the time is appropriate. Good Luck to you!!

Matt Puzz
Licensed Loan Originator
Amerifirst Financial. Inc.
602-410-9333
apply online: http://www.facebook.com/TheArizonaMortgageExpert?v=app_4949752878
0 votes Thank Flag Link Tue Jan 25, 2011
Peter, ROI is usually very good in that area and vacancies tend to be very low. ROI will vary depending on your choices and the property (some properties require more maintenance costs and some landords do more of the work themselves). On most of the cases we have worked on the area we have seen very high ROIs. Your buyer's agent will help you go over the numbers you have, will provide you with inputs regarding what to expect and confirm if your calculations are correct or not.

Good luck!

Carlos J. Ramirez, PC, ABR, CNE
Associate Broker/Realtor, HomeSmart -
http://www.SmartAZRealty.com
0 votes Thank Flag Link Tue Jan 25, 2011
Peter your bets bet is to get a buyer broker who is experienced in foreclsoures in that area. They can guide you through the process and let you know what are averages are for ROI. you can usually do so at no cost to you, they get paid their commission from the fee advertsised in MLS by the listing agent and paid at closing.
This way they can get the information for you and you will have someone assisting you through each step of the buying process.


Please see my blog for tips and advice on buying bank owned homes.
0 votes Thank Flag Link Tue Jan 25, 2011
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