Re: How is Phoenix Market for new investors? - Posted by Rich
Posted by Rich on March 21, 2006 at 18:27:52:
I have been in the Phoenix market for 2 years now, following on from some friends who had been there 4 years prior to that. Phoenix has pretty much hit the appreciation mark and is settling down to a solid annual rate of appreciation but nothing like the last two years.
Prices are high enough that you should not expect 1 - 4 family properties to make their expenses even with as much as 30% down. Apartments might be doing better, but there are a LOT out there with “for rent” signs. The occupancy rate is under 80% right now, which means these complexes will make a small profit, but its kind of borderline.
I looked at rehabs from CA there last year (I’m in the SF area) and you really need to have someone on site to look after things for you. Like the people who SAY they worked but a visual inspection leaves you wondering if they even showed up. Additionally, the wholesalers have gotten a lot of the lower priced properties tied up, so the profit margins are not very good. Its still a living but there’s more work to it than there was.