Thinking of buying home in Prescott to rent out now-live in later (Sedona: real estate, apartments)

[travelon]

My husband loves Prescott. His parents retired there and both passed away within the past 4 years, so he has spent a lot of time there and knows his way around the city. We live in Southern Calif. and have for many years but have discussed retiring elsewhere...someday. Currently, due to the economy, husband is working near Gallup while I stay in SoCal and work. We meet once a month in Prescott and love spending time there. We came into a little money and are thinking of buying property and renting it out. Husband is wanting to buy in Prescott...thinking down the road, that he'd like to live in Prescott someday. But we'd just be renting it out now and then have all those trips to write off at the end of the year. We have a few friends here in SoCal with rentals, who are not having any trouble keeping them rented. But what about Prescott? Is there a demand for rentals? Would we have any trouble finding renters? Thanks in advance for your help!

[BriansPerspective]

Hi Travelon, Renting is just like selling. If you price it right, it will rent. In general, the rental market is saturated, but if your goal is merely to have someone occupy the house and cover some of your mortgage payments until you retire, then you should be fine. If you play the market right, you might hit the magic bullet of buy low now in Prescott and sell high later in SoCal. There are several property management companies around. For a percentage of the rent, they will find the tenant and manage the property for you.

[Den Mathias]

I wonder if Prescott is a rental magnet though. It doesn't appear to be a place where people go to recreate?
I always thought of the Grand Canyon or Sedona as places to go to enjoy the outdoors.
Although, Prescott does have the nice weather going for it.

[scottdavis]

Originally Posted by BiggsHomes

Hi Travelon, Renting is just like selling. If you price it right, it will rent. In general, the rental market is saturated, but if your goal is merely to have someone occupy the house and cover some of your mortgage payments until you retire, then you should be fine. If you play the market right, you might hit the magic bullet of buy low now in Prescott and sell high later in SoCal. There are several property management companies around. For a percentage of the rent, they will find the tenant and manage the property for you.

From a retired real estate company owner and property manager:

Rent dont buy. Prescott is very overpriced! There are literally 100's of vacant homes, condos and apartments. The rental market is saturated. People cant afford to pay there rent and are being evicted at record numbers. There are very few jobs. Not even Walmart or McDonalds are hiring and they have a year supply of appplications.

If you dont believe me go to Prescott Municipal Court and watch the eviction notices fly. Then talk to the property owners. Its the worst we have ever seen and not getting better.

If your retired and have income then you will be pretty safe.

Prescott as a whole is a nice town with great weather.

Scott
15 year resident...

[sassy2]

Scott, what do you anticipate the Prescott market doing? We also were playing with the idea of purchasing a house for retirement. Do you think prices have bottomed in the area?

[DellNec]

Originally Posted by sassy2

Scott, what do you anticipate the Prescott market doing? We also were playing with the idea of purchasing a house for retirement. Do you think prices have bottomed in the area?

Nobody knows for sure if and when the bottom will hit. The realtors were saying the bottom hit back in 2008, they were wrong, as the prices keep falling.

A realtor will always say NOW IS THE TIME TO BUY. Whether it is or not, nobody really knows.

Prescott will always be over priced, that is what it is.

[DellNec]

Originally Posted by scottdavis

From a retired real estate company owner and property manager:

Rent dont buy. Prescott is very overpriced! There are literally 100's of vacant homes, condos and apartments. The rental market is saturated. People cant afford to pay there rent and are being evicted at record numbers. There are very few jobs. Not even Walmart or McDonalds are hiring and they have a year supply of appplications.

If you dont believe me go to Prescott Municipal Court and watch the eviction notices fly. Then talk to the property owners. Its the worst we have ever seen and not getting better.

If your retired and have income then you will be pretty safe.

Prescott as a whole is a nice town with great weather.

Scott
15 year resident...

Things are bad up here in Prescott. I had to post a sign that said NOT ACCEPTING APPLICATIONS, as I was getting so many people coming in looking for a job. My business is down 30-40% and the cost of living here is high. Many of the people are moving out of the tri-city area. It's in the thousands, but that is something the city and the Chamber of Commerce will not tell you.

[sassy2]

Thx for replying. I tend not to believe the RE agents anymore either.

[DellNec]

Originally Posted by sassy2

Thx for replying. I tend not to believe the RE agents anymore either.

They are forecasting a 3rd wave of foreclosures, it will be worse than the first 2 waves.

Economists call rising delinquencies and foreclosures among prime borrowers the third wave of trouble. The first two waves were housing speculators going bust and subprime borrowers -- those with poor credit histories and some version of no-down or low-down adjustable-rate mortgages -- getting into trouble. Mark Zandi, the chief economist for Moody's Economy.com, It is gathering momentum, The problem is now well beyond subprime and deep into prime.

Coming: A 3rd wave of foreclosures - MSN Money

[scottdavis]

Originally Posted by sassy2

Scott, what do you anticipate the Prescott market doing? We also were playing with the idea of purchasing a house for retirement. Do you think prices have bottomed in the area?

Prescott No Way!

Buying a house in Prescott would be the worst economic move one could make.

Best case outlook a 1-5% depreciation per year for the next five years.

Worst case outlook a 6-10% for the next 5 years.

Renting will get you alot more home for alot less money than buying.

Please take this to heart and keep your hard earned money.

You will need it when you move here.

If your a retiree Prescott is a smart choice.

If you have a family.

No way....