best location to purchase rental properties currently? (Mesa, Gilbert: real estate, rentals)

[the_vinman]

I see lots of discussions on real estate around town, any thoughts on best places to get good cashflowing rentals ? I have a few rentals currently but havent bought any in few years but thinking would like to get few more this year if price etc is right. I have couple in Phx, and one in mesa
i HATE driving to phx since i live in east valley to play landlord so im thinking want to focus on stuff around here. any thoughts from other investor/landlords apprecatied or anyone else with some good ideas

thx

[azriverfan.]

Originally Posted by the_vinman

I see lots of discussions on real estate around town, any thoughts on best places to get good cashflowing rentals ? I have a few rentals currently but havent bought any in few years but thinking would like to get few more this year if price etc is right. I have couple in Phx, and one in mesa
i HATE driving to phx since i live in east valley to play landlord so im thinking want to focus on stuff around here. any thoughts from other investor/landlords apprecatied or anyone else with some good ideas

thx

My advice is think quality. Don't think about money. I know that sounds counterintuitive but it's my philosophy in life. Think about providing the best service possible and the money will be there.

In terms of investing and buying property, it's the same thing. Refer back to Jerry Maguire....less clients...more time. It's the same with homes. Less homes, more quality. Pay more for a nice home in a nice neighborhood. Don't compete with the investors who are snatching up cheap properties. You won't be able to compete with them.

I would focus on the new areas in East Mesa like Las Sendas and north Gilbert focus on buying the relatively cheaper homes in quality neighborhoods. These are not cheap properties but I would rather start with one quality property than buy two or three cheap properties. You might pay more upfront but you will be much more happy dealing with a quality home, having quality tenants and when it comes time to sell, you will have an easier job selling your property than trying to unload one of the shacks the investors are piling on.

Also, something a lot of the investors on this forum ignore is being a good landlord. If you are a great landlord, your tenants won't leave. It's true. Don't nickel and dime them. Throw in some freebies. For my tenants, I provide landscaping and pest control. It doesn't cost me a lot but it does make my tenants happy and they don't leave. During the holidays, stop by and drop them a gift basket or a bottle of wine or champagne. I could raise prices on them and they would remain because good landlords are hard to find.

[Captain Bill]

Originally Posted by the_vinman

I see lots of discussions on real estate around town, any thoughts on best places to get good cashflowing rentals ? I have a few rentals currently but havent bought any in few years but thinking would like to get few more this year if price etc is right. I have couple in Phx, and one in mesa
i HATE driving to phx since i live in east valley to play landlord so im thinking want to focus on stuff around here. any thoughts from other investor/landlords apprecatied or anyone else with some good ideas

thx

If you're thinking of <$150k range in the east valley, you'll have a very difficult time buying one. It is so difficult that buyers are placing up to and probably more than 30 offers above list price before getting one accepted, . It is so difficult that I've begun turning down potential clients who call looking for homes in that range. I would be futilely spending all my time writing offers and not be able to provide good service to all of my clients.

In the $200-300k range there is more inventory available. As far as good cash flow, you just have to work the numbers for each potential property to see if it works for you. With a spreadsheet set up it should take about 5 minutes for each property because the rental rates pretty close to the ballpark of $0.75/sf.