East Valley Help (Phoenix, Mesa, Chandler: real estate, foreclosures, rental)

[VDODSON]

Hi,

I am currently stationed in ND, but am extremely interested in investing in rental properties in the East Valley. I am originally from Chandler, and most of my family is still in the nearby vicinity. This will be my first home purchase, and I have been doing research for about a month or so on different terms, and reading advice.

My goal is to keep the property for as long as possible, and to break over even in regards to the mortgage/insurance, etc. I am having trouble figuring out what price to limit myself to, and need help. The vast majority of properties in either Gilbert, Chandler are well over the $150K mark, and those under seem to be foreclosures or condo's/townhomes. Single Family Homes have better track records than townhomes by the majority of views I've read due to appreciating in value and longer renting terms of tenants. Also, I would be employing a property management company for landlord duties.

I can swing 20% on a property up to $130K, but would prefer to spend less. If you were in my shoes what would you do? Would you also consider Mesa? Would you consider townhomes/condo's. Any advice would be much appreciated, thanks in advance.

[DetroitN8V]

Invest in mutual funds.

[Pink Jazz]

If you don't mind the commute, Queen Creek and/or San Tan Valley are also options that would be cheaper than Gilbert or Chandler. Quite often you will find builders building the same floorplans in Queen Creek and/or San Tan Valley for less money than they sell in Gilbert or Chandler (Chandler typically being the most expensive of the four options).

East Mesa isn't too shabby either. A community that may suit your needs may be Eastmark, where some of the smaller floorplans may be within your price range. It has Queen Creek schools (which are much better than Mesa schools), and has quick convenient access to the Loop 202 SanTan Freeway.

[fennec2009]

Don't invest in the suburbs. It's going to be too hard to break even with the prices, especially in the East Valley. Find something centrally located like central Phoenix. There are plenty of single family properties in your budget in Phoenix.

[LocoAZnative]

The days of cheap house to flip are gone especially if you are not a cash buyer. Good luck

[cactusland]

I am going to agree with LocoAZnative. Unless you have that in cash you are already late to the cheap housing market and "they" (ie, those selling homes) have decided that the market is okay to start raising costs again, so we have seen 20-30% increase on prices of real estate across the entire valley.
I am sure there ARE very good places to buy in Chandler for 130k but you will need to get a real estate agent who is familiar with the market and can help you buy a place quickly.

[PhureeKeeper]

^ ^ what they say!

Keep in mind since you would be an out of state landlord you'll want to use a property management company. They will take 7-10% off the top of your monthly rental. If you are only in the $130K range, that doesn't leave you much profit left. Tenants aren't going to want to pay more in monthly rent just to help with your investment.

[SlowHeavyGroove]

Originally Posted by Pink Jazz

If you don't mind the commute, Queen Creek and/or San Tan Valley are also options that would be cheaper than Gilbert or Chandler. Quite often you will find builders building the same floorplans in Queen Creek and/or San Tan Valley for less money than they sell in Gilbert or Chandler (Chandler typically being the most expensive of the four options).

East Mesa isn't too shabby either. A community that may suit your needs may be Eastmark, where some of the smaller floorplans may be within your price range. It has Queen Creek schools (which are much better than Mesa schools), and has quick convenient access to the Loop 202 SanTan Freeway.

hes looking for property to invest in not live...i.e. rent out.

[VDODSON]

Thanks....