Anyone's answer on this will be an opinion and just that. Nobody can tell you what the market will be like in 2 years, and if they do, they should not be doing real estate. Moreover, if anyone could predict accurately or had a crystal ballâ€¦..Phoenix wouldn't be in this mess. Investment properties are just that, INVESTMENTS with all the inherent risks included.
What I can tell you is that the market is picking up TODAY. Homes that are under $250K are in an extreme sellers market with multiple offers coming in well above the asking price. Inventory is low in this range and demand is high. With that being said, the rental market is hopping in many parts of the valley. Homeowners that lost their homes to short sale or foreclosure are renting and "waiting it out" and in many cases, rental income is excellent for some investors.
Have a real estate agent perform a comparative market analysis (CMA) on the property in question to tell you what homes are selling for in your area and that should be a great first step in making an informed decision.
Realty One Group
P.S. And if you find the guy with the crystal ballâ€¦.email me his number. :p... more