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Old 08-24-2011, 02:39 PM
 
255 posts, read 512,768 times
Reputation: 173

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Quote:
Originally Posted by Kimballette View Post
It's too bad you didn't have more time, as the Phoenix metro area has a lot of very nice properties. You did not drive anywhere near them, however...
Wish we had more time but weekend visits are like that - weekends. We researched few homes online, and were targetting them specifically when we arrived in Phoenix.

It was not meant to indict Phoenix Metro as a whole, but just recalling the locales that we visited specifically. Could you recommend a couple of Phoenix Metro neighborhoods that would appeal to the OP and ourselves?
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Old 08-24-2011, 04:10 PM
 
Location: Alberta, Canada
10 posts, read 29,721 times
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Alright...I have found some attractive homes for sale in Mesa and Tempe. I have heard good things about Mesa, how about Tempe?
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Old 08-24-2011, 04:28 PM
 
205 posts, read 295,669 times
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If you get a chance you should go there and spend a full day just driving around the city. You will need the full day cause Phoenix is very spread out. Being from Lethbridge you have the advantage of a short drive to Great Falls and catching a cheap flight from there. This is what my coworker (who is from Lethbridge) tells me.

I was really curious why people didn't like Estrella (Goodyear and Avondale) south of I-10. We took a drive out there and now we know why. It's not all bad but it is night and day between that and north of I-10.

Tempe is spotty too. If you are right beside the University it seems very alive but with only an extra 5min drive away you suddenly can feel like you are in the hood depending which direction you drive. So it is really tough to do on your own. You need to either go there yourself or get help from somebody like one of the realtors here (or find one another way). The ones on this forum seem very knowledgable and have offered good advice on this forum without asking for anything in return. From my limited observations they seem like they would be good to deal with.

As mentioned by Tireofcold seeing the photos online and in-person can be totally different too. We saw some that looked immaculate online but once we saw them in person we were very disappointed. Sometimes the opposite happens too.

I will tell you one thing for sure though: If you want to invest in real estate don't do it in Lethbridge or anywhere in Alberta. Your rates of returns will be much higher in Phoenix.

Here is a tip as well. Try to find out the homebuilder. It makes a big difference. This is also something the listings usually don't tell you but a realtor can.
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Old 08-24-2011, 04:29 PM
 
Location: Raleigh, NC
19,374 posts, read 27,612,459 times
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Tempe AND Mesa are a mixed bag. Some areas are old and not very nice - I would not consider them to be a good long term investment.

Some areas of Tempe, especially near the university, are risky - do you really want college students for tenants? And the properties tend to be old. South Tempe, closer to Chandler, has some very nice areas, some with newer houses (5-15 years old).

Mesa. Well, I live in Mesa. I would only buy investment property in Mesa if I was looking at far NE Mesa. I would certainly look at Las Sendes and the surrounding areas of NE Mesa. But I'd also be looking at Power Ranch.

If you are looking at Tempe and Mesa, I'd suggest you also consider Gilbert and Chandler (though the prices of homes will be higher in Chandler, I would suspect). And, if you are serious about the East Valley, consider Captain Bill as a realtor. He knows the area well and is an investor himself.
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Old 08-24-2011, 04:44 PM
 
Location: Alberta, Canada
10 posts, read 29,721 times
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Thanks for the help! I will forget Tempe. I really am set on something built within the last 10-15 years. Being that I live 24 hours away, I don't want the headaches of an old property.

Mesa is starting to interest me. I found a bunch of properties that look promising. Are there any areas in Mesa that are really "ghetto", like those in South Mountain with gang problems ect?
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Old 08-24-2011, 05:02 PM
 
Location: Gilbert - Val Vista Lakes
6,069 posts, read 14,732,268 times
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Quote:
Originally Posted by CanadianInvestor View Post
Thanks, CaptainBill.

I don't think I worded it right in the opening statement. I am always open to hearing comments from everyone. I am a Real Estate Agent myself, so I always like to hear advice from local professionals as well.

Do you think I would have a problem renting out properties in Laveen or Estrella (I think I am turned off of South Mountain)? I am looking to cash flow each month, but my goal is to hold onto these properties until the market has gone up and then sell them, whether that is in 5 years or 20 years. For Re-sale purposes would Laveen or Estrella be ok?

I do have interest in the East Valley as it seems to be an area where many investors go. That is with the exception of Scottsdale as it is to expensive for me. Ideally I would like to find newer Single-Family homes under $100 that would rent for $1000/month +. Which areas of the valley would be best for this?
I stay away from the marginal areas so I'm not up on how fast the homes rent in the Laveen area.

Surprise on the west side is a good area that has some low cost newer homes. Marley Park area in Surprise is a popular area. I haven't kept up on the prices over there however. But it may fit your goal better than my Gilbert area because the homes are priced lower.

For a long term goal, my suggestion would be to choose a good area that is not likely to go into a declining area. Surprise was over built during the boom time and that's why the prices declined so much. But it is a popular area and I would expect prices to increase with the valley in the future.

Tempe is a popular city. It has older homes and the prices are higher than Chandler. Tempe is part college town, and part bedroom community.

Chandler is a great area that's near technology companies such as Intel, Paypal, etc. Their prices are higher than Gilbert.

As you go further east from Phoenix, the price per square foot is a little lower.

Going to the southeast past Gilbert, there is San Tan Valley (Commonly known as Queen Creek in Pinal County. That area was also overbuilt and prices are cheaper there, like Surprise. However, San Tan Valley is further out than Surprise, and it has been fairly well saturated with landlord owners, so I'm not sure how the rental market will hold up there.

Back to Gilbert, which is my favorite. I like it for investment because it is a conservative town, very green, and still has some growth areas. It has hospitals, a new major cancer treatment center, has great schools, and is known as the 14th safest city in the US. It is an easy commute to Scottsdale and Phoenix.

However, it is tough to get the home you're looking for under $100k. Between $100 and $125k is a better target.

One of my investors just closed escrow today on this 2006 built home. MLS #4621696. Purchase price was $99k, It is a home with no yard, (a common front yard actually, maintained by the HOA), just a patio, 1418 sf. The home is in immaculate condition and will rent fast. The property manager will start marketing it within a few days. If he can get 75cents/sf then it will be $1063. Seventy five cents is a ball park number. Some will go for more and some will be less, depending on location, condition, competition, etc.

We lucked out on this home. It came up on the mls in the morning. I went to see it at 8am, (the earliest the timed lock boxes allow us in). My investor is in Canada, and we have a history together so he knows he can trust what I say. I told him he needed to make an immediate offer and it will be gone tomorrow. We signed the offer electronically, and submitted it by 10am, and had an acceptance by 3pm. Had we been a day late, someone else would have gotten it.

I'm not familiar enough with the central Phoenix corridor. Others here are, so I'll leave that to them to explain.
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Old 08-24-2011, 05:15 PM
 
Location: Gilbert - Val Vista Lakes
6,069 posts, read 14,732,268 times
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Quote:
Originally Posted by CanadianInvestor View Post
Thanks for the help! I will forget Tempe. I really am set on something built within the last 10-15 years. Being that I live 24 hours away, I don't want the headaches of an old property.

Mesa is starting to interest me. I found a bunch of properties that look promising. Are there any areas in Mesa that are really "ghetto", like those in South Mountain with gang problems ect?
Not gangs as far as I'm aware, but there is a lot of crime in the central areas that are low income and older homes.

The east and southeast areas are good. There are some areas in the south east that are in the Gilbert school district.

There may be some homes in the northeast around the Red Mountain area that could be in your price range. I haven't priced any there lately. Red Mountain area is where Las Sendas is. Las Sendas backs up to the Usery Mountains and the Tonto National Forest. It's an upscale desert type community with homes in all price ranges up into the millions.
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Old 08-24-2011, 07:32 PM
 
Location: New Mexico and Arizona
267 posts, read 689,941 times
Reputation: 333
We recently bought a home in an older part of NW Mesa after looking at a few dozen homes in Tempe, western Mesa, and southern Scottsdale. The home was to be a combination investment, retirement and vacation home, and place for our son to live while he's in school. The search was interesting, given that we couldn't count on the listing information to tell us that particular things we wanted to know, or to always be accurate in some details. There just is no substitute for giving a property a good, disciplined first-hand eyeball. Eventually, we wound up with a relatively new (built 2000) in a nice pocket neighborhood that was convenient for our needs. Also, I think that neighborhoods are a very local phenomenon; describing large areas or whole zip codes as good or bad doesn't really help much.
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Old 08-24-2011, 07:51 PM
 
Location: Calgary, AB
681 posts, read 1,554,843 times
Reputation: 750
Agree with everything posted so far.

For perspective when we went down we were hoping to buy in the $100k or under range... unfortunately so is everyone else! We ended up paying $130k for a 1766 Sq FT single family home built in the late 90's in a very middle-class subdivision - it was in move-in condition though with lots of "new".

We looked in Mesa and found that the inexpensive, new homes we saw on-line were surrounded by run down trailer parks. Not my cup of tea... we didn't even bother driving into the subdivision with the nice homes because the general area was such a turn-off. Once again, this illustrates the importance of visiting the area.

As for vacation vs. full-time rental... depends on your preference. There are good and bad with both.

Have you considered condo's rather than single-family? There is a fairly recent thread were Captain Bill was explaining the benefits of condo's as investment properties in this market; may also help you pick up multiple units for lower costs than the single-family market.

Keep in mind that you will also be paying US income tax on your rental - they with-hold at source.

And then there is that line on our income tax return which asks: Did you own property outside of Canada with a value of $100k plus? (I checked the interpretation bulletins and you only have to answer "yes" if you rent the property). The thought of dealing with the IRS and being more intimately involved with Revenue Canada was enough to make these Canadians shy away from renting the property we purchased
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Old 08-24-2011, 08:12 PM
 
Location: Alberta, Canada
10 posts, read 29,721 times
Reputation: 11
Thanks for all of the help, everyone.

CaptainBill: If I purchase in the Gilbert area I will give you a call. Thanks to everyone for your help! Any other suggestions would be greatly appreciated.
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