Considering a move to Phoenix Area (Mesa, Glendale: short sale, 2011, foreclosure)

[littleguyandjoey]

Hi everyone: I am considering taking advantage of the foreclosure crisis in the Phoenix area and buying a home in Phoenix. I am mainly looking at townhouses, condos, and small single family homes. I intend to rent it out for a couple of years and move there in the summer of June 2011. (I have family in the area.) I intend to purchase outright and not take a mortgage. Below is a list of possible subdivisions. Any comments about any of them would be appreciated. Thanks!!

Phoenix:
Autumn Park Condominiums
Cinnabar
Desert Breeze Villas Condominiums
Discovery At Villa De Paz
Garden Club Condominiums
Granville
Laurelwood At Villa De Paz
Mountain Canyon Condominiums
Pointe Tapatio 2
Ridgefield Subdivision
Riverbend Subdivision
Sagecrest
Shadow Mountain Villas
Town & Country Biltmore
Turf Village

Glendale:
Catlin Court Historic District
Glendale Springs
Mulwood Springs
Pace Rosewood
Spartan Arms
Trends 84

Chandler:
Chandler Meadows Condominiums
Discovery At Daybreak
Sonoma Village
Southridge Estates
Sunstone 2

Mesa:
Citrus View Condominiums
Dobson Glen
Eastbrook
Eastwood Park
Fiesta Park Village
Sungate At Moon Mountain
Woodglen Square

[las vegas drunk]

This is just my advice, but I think you should wait until 2011 to buy a house. There is a good chance if you buy a house now your house will still tumble in value. My friend bought a house in El Mirage at the end of 2005 for $225,000. He did a short sale less than a year ago on it and refinanced it at $129,000. Guess what it is now? It was now appraised at $86,000.

[littleguyandjoey]

Thanks for the advice but everything I have been reading indicates that this summer is the bottom for the Phoenix market although it certainly could go lower. I'm really sorry for your friend but I'm trying to get in on my first home buying houses like the one you describe in your post.

My brother is a home inspector there and is very familiar with the market -- I won't buy anything without his saying I'm getting a solid property. My plan is not to spend more than $50-60K on a short sale or foreclosure -- in cash (inheritance). I've been looking up the tax records and previous sales of the properties I'm looking at and most of the properties have previously sold in the neighborhood of $150K to $250K and currently appraise (tax appraisal) at 77K to 88K.

My brother suggests I look at something in the 75K range but then I would have to take a mortgage and don't want to do that. I'm willing to sit on it 5 or more years for investment purposes although I would like to live in it. I'm thinking that 2011 might be too late to purchase something for cash.

[las vegas drunk]

If you are going to get a house now, looking into the far west valley (El Mirage, Avondale, Goodyear, Surprise) would be a good option. You can actually get a nice house now for $75,000 that is less than 10 years old.

[littleguyandjoey]

I will definitely look into those areas -- I haven't yet. The only concern I have is that it maybe to far out?

[SpeedyAZ]

If you are going to get a house now, looking into the far west valley (El Mirage, Avondale, Goodyear, Surprise) would be a good option. You can actually get a nice house now for $75,000 that is less than 10 years old.

I wholeheartedly disagree, the far outskirts of the Valley would be the worst places to invest at this moment. I'd find something in a solid neighborhood maybe in Tempe or North Phoenix, the prices are low and the homes closer to the core of Phoenix are going to regain their value must faster than those on the outskirts. If and when you ever decide to sell this home, it'll be quite a bit easier to sell in an established neighborhood compared to something in the middle of nowhere.

[las vegas drunk]

Originally Posted by SpeedyAZ

I wholeheartedly disagree, the far outskirts of the Valley would be the worst places to invest at this moment. I'd find something in a solid neighborhood maybe in Tempe or North Phoenix, the prices are low and the homes closer to the core of Phoenix are going to regain their value must faster than those on the outskirts. If and when you ever decide to sell this home, it'll be quite a bit easier to sell in an established neighborhood compared to something in the middle of nowhere.

True, but I challenge you to find a 1,800 square feet, 4 bedroom, 2 bath house built in 2001 for $86,000 in any of those areas. In fact, it would be downright impossible. Dollar for dollar, the outskirts give the best value.

[littleguyandjoey]

Actually I'm looking for a townhouse more than a single family. At most I would want 1300 to 1400 square feet since I'm single and don't need that much space (or upkeep). The only single family homes I'm looking at (which aren't too many) are small and on small lots. Mostly I'm looking in Phoenix, Glendale, and Mesa -- although Mesa is a little out there. Trying to stay more centrally located.

[YAZ]

Originally Posted by littleguyandjoey

Actually I'm looking for a townhouse more than a single family. At most I would want 1300 to 1400 square feet since I'm single and don't need that much space (or upkeep). The only single family homes I'm looking at (which aren't too many) are small and on small lots. Mostly I'm looking in Phoenix, Glendale, and Mesa -- although Mesa is a little out there. Trying to stay more centrally located.

Our rental property is a two story condo on the lake; 1100 sq ft. north central Phoenix. The "comps" in that area run from 30k for a "flat", and one similar to ours just "short sold" for 70k.

Good for you but not us. We owe 93k.......

[littleguyandjoey]

I'm sorry about your situation! But I have to say as a first-time home buyer the market in Phoenix seems like a once-in-a-lifetime opportunity for me that may never come again. I guess I don't want to look back in 20 years and say shoulda, woulda, coulda.

Do you use a property management company or do you manage your rental?