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Investment Property in Phoenix Area


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by Bitcoin     💰tip   follow   2021 Dec 20, 2:17pm  

Hi guys,

anyone here owning/managing investment property in the greater Phoenix area?
Looking to buy a SFH as a rental. Which areas do you recommend and why?
Do you know a good local rental property management team?

low taxes, low HOA's are my main reasons to invest there along with increasing rents. This will be a long term investment for me.
Any feedback/advice is much appreciated.

Thanks a lot in advance!

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18   just_passing_through   2022 Jan 16, 12:14pm  

Bitcoin says
Which builder did you purchase from?


DR Horton and Pulte.
19   mell   2022 Jan 16, 2:40pm  

Bitcoin says
Booger says
Buying at what could be the top of the market, with the possibility of never ending eviction moratoriums. Bold move considering the direction of interest rates.


top of the market eh? like 2016, 2017, 2018 .....2020....AH yeah, 2020....when I bought a new construction in 2020 everyone and their mom told me I will lose my shirt.....crash, crash, crash....fast forward to 2022 and I gained 350k in equity for just that one house.


2022 is the top..for real this time, right?


As long as housing is a racket protected by the Fed, unfettered illegal immigration, and big players cornering everyone there is only one way, up. The fat years may be over, but timing a crash of a protected racket is almost impossible. Burry sniffed out the hidden mass defaults 2007, until we see something like that it's not time yet. Expect moderate growth in the coming years only though, maybe even declines in cities while bigger gains on the country side.
20   NuttBoxer   2022 Jan 16, 3:47pm  

mell says
Burry sniffed out the hidden mass defaults 2007, until we see something like that it's not time yet. Expect moderate growth in the coming years only though, maybe even declines in cities while bigger gains on the country side.


If we've learned anything from public indoctrination(some say education), it's that not seeing the big picture always leads to reactionary living. The impact of doubling the inflation of the past hundred years in last 10 is showing. There's no way this economy lasts another year. Yes, you can play in dishonest economics, and realize a profit, but if you don't get out of the system, and start investing in honest earnings at some point, you will lose everything in the end. And it's this dishonesty, and widespread ambivalence that has led to the past two years.

You want more of the same, keep playing their game. You want a better future for your kids, and yourself, start cutting ties with their system, and start dealing with people who share your morals.
21   mell   2022 Jan 16, 5:26pm  

NuttBoxer says
mell says
Burry sniffed out the hidden mass defaults 2007, until we see something like that it's not time yet. Expect moderate growth in the coming years only though, maybe even declines in cities while bigger gains on the country side.


If we've learned anything from public indoctrination(some say education), it's that not seeing the big picture always leads to reactionary living. The impact of doubling the inflation of the past hundred years in last 10 is showing. There's no way this economy lasts another year. Yes, you can play in dishonest economics, and realize a profit, but if you don't get out of the system, and start investing in honest earnings at some point, you will lose everything in the end. And it's this dishonesty, and widespread ambivalence that has led to the past two years.

You want more of the same, keep playing their game. You want a better future for your kids, an...


It can last much longer than another year, otherwise I agree with most of your statements. Most nations practice deficit spending and debt may get canceled out against each other, prolonging the cycle
22   Bitcoin   2022 Jan 16, 8:01pm  

mell says
It can last much longer than another year


Exactly. Nobody knows. Those that call for a crash have no clue either, they just call a crash each year and eventually they will be right. Meanwhile the bulls made money for over a decade.
23   Bitcoin   2022 Jan 16, 8:05pm  

just_passing_through says

DR Horton and Pulte


Dr Horton, I havent been impressed by their model homes. The last builder I purchased from builds 1M+ homes here in Socal. I have nothing but good things to say about them.

https://calwestliving.com/?source=patrick.net

Will see how that Lennar home in Phoenix turns out......I am excited about my Phoenix investment. Will be there for spring training (Padres) and check on the development.
24   Bitcoin   2022 Jan 16, 8:06pm  

Booger says
Bitcoin says
The builder fixed everything that needed to be fixed for me and my neighbors.


I would consider that to be the exception rather than the rule.

Have you ever bought a new construction in your life?
25   Hircus   2022 Jan 16, 11:11pm  

My guess is interest rates wont get hiked too far up for long.

Some of the supply chain issues that are causing part of the inflation will start to moderate soon, although I doubt fully. I think there's other inflationary factors that will remain past that point though. I think the fed will err on the side of letting inflation run a bit on the hot side opposed to hiking too much.

But I'm mostly guessing.
26   Booger   2022 Jan 17, 8:00am  

Bitcoin says
Have you ever bought a new construction in your life?


Nope. I prefer to learn from other people's mistakes.
27   just_passing_through   2022 Jan 17, 9:49am  

Bitcoin says
Dr Horton, I havent been impressed by their model homes.


Agreed, Horton isn't the best, Pulte is great though and I still have builders grade problems. All of them cash flow about 2x better than what you bought though.
28   mich   2022 Jan 17, 10:34am  

mell says
Bitcoin says
Booger says
Buying at what could be the top of the market, with the possibility of never ending eviction moratoriums. Bold move considering the direction of interest rates.


top of the market eh? like 2016, 2017, 2018 .....2020....AH yeah, 2020....when I bought a new construction in 2020 everyone and their mom told me I will lose my shirt.....crash, crash, crash....fast forward to 2022 and I gained 350k in equity for just that one house.


2022 is the top..for real this time, right?


As long as housing is a racket protected by the Fed, unfettered illegal immigration, and big players cornering everyone there is only one way, up. The fat years may be over, but timing a crash of a protected racket is almost impossible. Burry sniffed out the hidden mass defaults 2007, until we see somethi...


If you look at the 18.6 credit cycle up until 2026/2027 and once it goes down it will take 3 years about to reach the bottom. Currently the Half Cycle Low is the end of 2022/early 2023. I'm planing to buy as assets will continue to rise otherwise I'd have to wait until 2030 in which I will most likely buy investment property.
29   zzyzzx   2022 Jan 17, 11:57am  

10 Reasons Why You Should NEVER Move to Phoenix, Arizona
https://www.youtube.com/watch?v=M0oYeSDnjys&source=patrick.net

And there are more videos like that.

Now I live in Baltimore City, which also sucks (except for different reasons). But at least it's cheap to live. I paid ~$34,500 for my house in 2003. You can overlook a LOT of the shithole stuff if a place is cheap. At least parts of Baltimore are still relatively cheap and if you keep to yourself and don't do drugs it's safe enough.
30   Hircus   2022 Jan 17, 2:25pm  

How is AZ / Phoenix for landlord rights?

Is it one of those places where a loser can stay in your rental rent free for over a yr before you can evict, like in CA?
31   Bitcoin   2022 Jan 20, 8:53pm  

just_passing_through says
Dr Horton, I havent been impressed by their model homes.


Agreed, Horton isn't the best


yeah, its on the same level as KB Homes and other crap. Buying from a quality builder is important.

In terms of ROI. I have enough in crypto and stocks and want to invest long term. RE in booming markets like Phoenix dont seem like a bad idea. Will see. I'll made a shit ton in crypto....e.g. buying ADA at 10cents which is now trading over $1.2 :)
32   Bitcoin   2022 Jan 20, 8:56pm  

Booger says
Bitcoin says
Have you ever bought a new construction in your life?


Nope.


I figured :) Usually you get one of those posters that hasnt had the experience but wants to chime in.
One day you will be in the position to buy a brand new house....its nice....and if something breaks or you find cosmetic issues you just call the builder :)
33   Bitcoin   2022 Jan 20, 9:10pm  

zzyzzx says
10 Reasons Why You Should NEVER Move to Phoenix, Arizona
https://www.youtube.com/watch?v=M0oYeSDnjys&source=patrick.net


ROFL
His first reason is cost of living. bawaha
First of all, HOA & Taxes are less than half compared to SoCal. Home insurance and utilities in AZ are less expensive as well.
Then he talks about higher rents....fantastic....music to my ears as an investor.

His next reason is traffic. bawahaha
You can hardly call this traffic.....compared to LA or other areas in CA, the "traffic" in Phoenix is a joke.
Its super easy to get around in Phoenix even during rush hour and those loops really help.

His next reason is the weather and the lack of seasons. yeah it gets hot....but to say they will run out of water....give me a break. And maybe not everyone wants to shuffle snow during winter?!

Dont waste your time with this video.
34   just_passing_through   2022 Jan 20, 10:49pm  

just_passing_through says
Bitcoin says
In terms of ROI. I have enough in crypto and stocks and want to invest long term.


But this isn't crypto and stocks. Just be careful and be sure to stash some rent money off to the side to pay for things when they come up and you'll be fine. SFH rental properties are definitely not get rich quick schemes but can be a big help to diversify and offer some protection during high inflation.

I did the same thing you did after making piles of cash in markets. It's a good idea. I'm more confident with riskier investments because I know I won't, 'lose it all', now and housing being so illiquid I can't get drunk some night and fuck it all up in a dumb trade.

You've made a good choice if you plan to hold it for a long time.
35   Bitcoin   2022 Jan 21, 4:39am  

FJB says
SFH rental properties are definitely not get rich quick schemes but can be a big help to diversify and offer some protection during high inflation.

I did the same thing you did after making piles of cash in markets. It's a good idea. I'm more confident with riskier investments because I know I won't, 'lose it all', now and housing being so illiquid I can't get drunk some night and fuck it all up in a dumb trade.


Thanks man, you nailed it here.....I dont care if I buy the top in RE. For me its about diversifying into an inflation hedge with a long term strategy (25+ years).
People who bought RE in 2005 and held until now are doing well. Surely, there were people back then who made fun of them from the sidelines for buying the top. Time in the market beats timing the market.
36   zzyzzx   2022 Jan 21, 6:24am  

New House Construction Problems That Buyers Should Be Aware Of

https://www.youtube.com/watch?v=J6uERM1S1jE&source=patrick.net
37   Bitcoin   2022 Jan 21, 1:10pm  

zzyzzx says
New House Construction Problems That Buyers Should Be Aware Of

https://www.youtube.com/watch?v=J6uERM1S1jE&source=patrick.net


The guys says 7:35: "I wish they would stop increasing the price so much, they need to chill."

Great advice and video! What an expert!

Go back to your moms basement and watch more youtube. In the meantime millennials with money (me) will buy new homes and rent them out :)
38   Bitcoin   2022 Apr 23, 11:20am  

My rental has appreciated by ~50k by now and is about to be completed (builder's closing date is in May) which is about a 10% appreciation in 4-5month.
39   WookieMan   2022 Apr 23, 11:44am  

I'm building.... more out of need than want. Three pre-teen boys that will all be 6' plus ain't gonna work in our current house long term. Locked up 2 lots, friend bought the neighboring lot and won't build. So we essentially will have 1 to 1-1/2 acres as we're close friends. City sewer and water. Might buy another lot with another friend and essentially take the entire block.

Interesting new chapter in life. I'm tempted to get back into real estate, without the license this time. No handcuffs. I can't and won't work 40 hours per week. Ever. Looking at picking up a few investment properties in town where I'm at. I hate dealing with people (landlord) but it might be worth it. IL property taxes freak me the fuck out is the only issue. I'm guessing $12k/yr for the new build. Not a McMansion, but 2,200 SF ranch with full finished basement. Separate 2 car garage (4 total) with office/granny space if needed. Costs should be $400-500k. I'm going to do a lot of the work and have the ability to actively be there daily.

My next year or so is fucked. So if I go MIA here I'm either working on it or dead.
40   Bitcoin   2022 Apr 23, 2:33pm  

WookieMan says
Looking at picking up a few investment properties in town where I'm at


Congrats on the lot and building plans!
I am also looking to pick up more rentals, however, rates have gone through the roof and prices are still climbing.....i am going to be patient, wait for a cool down and maybe even a YoY stagnation of prices. Cant see a signficant reduction in prices with inventory that low.

With 2024 being an election year I bet on much lower interest rates by then. So 2023 might be the time to buy another rental for me and then refi later.
41   HeadSet   2022 Apr 25, 11:32am  

WookieMan says
I'm going to do a lot of the work and have the ability to actively be there daily.

I am sure that if you do not mind, pics of the progress would be appreciated on this blog. Also stuff like poured or block, HVAC style, tank or tankless, recirculating, and so on.
42   WookieMan   2022 Apr 25, 2:21pm  

Bitcoin says
With 2024 being an election year I bet on much lower interest rates by then. So 2023 might be the time to buy another rental for me and then refi later.

Yeah, I have no concern about interest rates honestly. I go by the 3x's income rule. Appraisal is the biggest issue with construction financing. We could easily spend $1M. There are not million dollar houses here unless you have acreage, so we're keeping it chill, but upgrading the fuck out of everything. In town we will have the nicest house. Building next to neighbors who won't build on their lot. So we'll legit have close to 1-2 acres and we're both cool sharing the land for kids, our pool and other shit. Might pick up the corner lot with another friend. Between us all we might end up with 700-800' of frontage in a subdivision.

Not looking forward to the process. We'll be upside down out the gate. We love our town and need more space so fuck it. Not the most responsible decision, but we'll be here for 10 years minimum and can afford $600-700k no issue. Concerned it will handcuff our retirement property plan, but we'll figure it out. We have time. If inflation continues to explode it might be the right decision for a primary home. The loans now are all pretty solid.
43   zzyzzx   2022 Sep 13, 6:02am  

https://www.bizjournals.com/phoenix/news/2022/09/11/arizona-home-lot-sizes.html

Arizona has some of the smallest average home lot sizes in the country

I would have guessed Florida.
44   WookieMan   2022 Sep 13, 6:40am  

zzyzzx says

https://www.bizjournals.com/phoenix/news/2022/09/11/arizona-home-lot-sizes.html

Arizona has some of the smallest average home lot sizes in the country

I would have guessed Florida.

AZ is bad. Just got back from Montana last night, those tract subdivisions are just as bad there. Tiny fucking parcels. I guess easier to mow or in the case of AZ less dirt to put on it and buy overpriced vegetation.

What blows my mind is there's land as far as the eye can see (besides the damn coastal fires burning and smoking the place out) yet a simple 3/2.1 is $400k. In Montana... My buddy spent $350k on his house. It's absolutely builder grade shit. First time out in I think 2-3 years. I'd run from Bozeman/Belgrade area. If you're looking for an overpriced small market that is it.

Also, Denver can eat shit. That airport has gone to hell and quickly. I used to like it. They expanded too much since it's a pre-Rockies central hub. They added like 20 gates and no restaurants in terminal C. Talking 30-40min waits at an airport to get in for bad food that you'll miss your connecting flight for.

Sorry, bitching. 3 hour drive from Missoula to Belgrade, flight to Denver and then Shitcago and I'm a bit burned out.. 6am to 12am. Non-covid it was the first time I didn't have a beer on a flight ever of age. 2 concerts and 4k' elevation change can burn you out.
45   FortwayeAsFuckJoeBiden   2022 Sep 13, 7:07am  

Bitcoin says

First of all, HOA & Taxes are less than half compared to SoCal. Home insurance and utilities in AZ are less expensive as well.
Then he talks abo


are they fixed? in idaho they aren’t fixed, doibled this year because of many people moving in.

the one good thing anout socal was fixed property taxes if you bought low.
46   FortwayeAsFuckJoeBiden   2022 Sep 13, 7:08am  

zzyzzx says


https://www.bizjournals.com/phoenix/news/2022/09/11/arizona-home-lot-sizes.html

Arizona has some of the smallest average home lot sizes in the country

I would have guessed Florida.


when we visited Florida (not with Elena), we liked it. it was nice there, humid but nice. houses were nice size
47   WookieMan   2022 Sep 13, 8:14am  

FortwayeAsFuckJoeBiden says

when we visited Florida (not with Elena), we liked it. it was nice there, humid but nice. houses were nice size

Housing is weird. I have no interest in a large house. I'd like acreage, but I'm cool with a small house. I don't want to be on top of neighbors. 6-8' setback lines can eat shit. If I can pee on my neighbors house from the window, that's too close. Which is all of AZ in most cases besides the wealthy areas. And the more ghetto areas all have those cinder block walls between yards.
48   HeadSet   2022 Sep 13, 10:39am  

WookieMan says

If I can pee on my neighbors house from the window, that's too close.

Even cooler if you can land the stream in his toilet through his open window.
49   FortwayeAsFuckJoeBiden   2022 Sep 13, 10:54am  

WookieMan says

FortwayeAsFuckJoeBiden says


when we visited Florida (not with Elena), we liked it. it was nice there, humid but nice. houses were nice size

Housing is weird. I have no interest in a large house. I'd like acreage, but I'm cool with a small house. I don't want to be on top of neighbors. 6-8' setback lines can eat shit. If I can pee on my neighbors house from the window, that's too close. Which is all of AZ in most cases besides the wealthy areas. And the more ghetto areas all have those cinder block walls between yards.


tennessee… cheap acerage
50   zzyzzx   2022 Sep 13, 11:34am  

FortwayeAsFuckJoeBiden says

when we visited Florida (not with Elena), we liked it. it was nice there, humid but nice. houses were nice size


No attic, no basement, and a tiny lot. I get self storage places do well in Florida.

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