Is Phoenix RE a good investment? (new home, landscaping, buyers)

[Marv101]

Canadians are also buying Phoenix-area real estate like crazy, as a recent article in the WSJ pointed out.

They certainly know that the Valley Of The Sun' is overloaded with tons of 'screaming bargains' in real estate, and so do many other smart homebuyers, investors included.

The old adage that 'You make money when you BUY real estate' is just as true now as it eer has been, even in a market as decimated as Phoenix, Vegas, or large swaths of California.

As longa as any investment property you buy throws off profits at a cash flow level that fattens your wallet on a monthly basis as well as when you file your taxes, I say buy all you can get your hands on.

[makeitagreatday]

Originally Posted by Howard Roark

I keep wondering why a renter would choose a SFH over a multi-unit rental. I've rented both. I had nothing but bad maintenance from renting SFHs - of course because the landlord was out of town when something crucial broke.

I think those who want to go into the landlord business should spend at least five years renting SFHs themselves, and five years renting milti-unit rentals.

If you do not know what it's like, you have no basis on saying people prefer renting SFHs over multi-units.

I'm just cautioning you. As I write this I'm enjoying a pleasant sunset through the blinds of my multi-unit rental and hear nothing but the A/C. The green park and trees are my back yard and no one lives above me. Should my A/C quit, maintenance will fix it well within 24 hours, probably within eight hours when it's deep summer. Cannot say that for my past experience in SFH. I suffered through 95 degree plus indoor temperatures over a weekend and several different weekends in the hot months that happened. swamp cooler was on the roof and I had the upstairs unit. No ladder so I could not fix it myself.

So glad to hear that you are happy with your choice. As for renters preferring SFH vs. multi-units, 20 years + of owning and renting out both tell me most renters prefer SFH as it feels more like their own home to them. It sounds like you've encountered irresponsible landlords that may have left a bad taste in your mouth for SFH rentals and it just goes to show that one person's heaven can be another person's you-know-what.

[ReadyFreddy]

Are you talking apts. or four-plex type places, when you say multi-unit? Fourplexes tend to be the same Joe Shmoe type landlord as SFH.

[whodiman]

Originally Posted by makeitagreatday

So glad to hear that you are happy with your choice. As for renters preferring SFH vs. multi-units, 20 years + of owning and renting out both tell me most renters prefer SFH as it feels more like their own home to them. It sounds like you've encountered irresponsible landlords that may have left a bad taste in your mouth for SFH rentals and it just goes to show that one person's heaven can be another person's you-know-what.

Actually I find it interesting that renters would prefer multi units over SFH. Obviously not every does but from my experience and talking to property managers they all agree SFH rent out way easier and especially for the marginal price difference. I currently have a duplex in KC which is not renting out very well for me. It is half vacant. There are several rentals in that area but the SFH rent out very quickly. My duplex has been half vacant for months. Last year when I was looking to pick up more property in Phoenix the property managers all suggested that SFH rent out much quicker. Now from an investor aspect there are advantages of multi-families as your "per door" cost is much less. I personally would prefer a SFH for the minimal price difference...but obviously not everyone agrees

[Howard Roark]

Just sayin' I've been renting apartments since 1996. Two apartments at a time since the year 2000. I once was a mortgage slave. And before that rented SFHs. The SFH rentals were where I had terrible and unresponsive maintenance while I suffered. All large apartment complexes since I broke the chains of a mortgage and I had same day maintenance ever since 1996. I rented coast to coast in large apartment complexes.

[khuntrevor]

I have a sfh and a th. I agree to there being lots of positives on the condo....water/sewer/roof to name a few. I paid about 20K each. The condo was way, way easier to get ready to rent out, but the house offers the long term appreciation and is also a land play in an infill area. Never underestimate the dog lovers, who would take any yard over any apartment.

[john3232]

Originally Posted by Marv101

Canadians are also buying Phoenix-area real estate like crazy, as a recent article in the WSJ pointed out.

They certainly know that the Valley Of The Sun' is overloaded with tons of 'screaming bargains' in real estate, and so do many other smart homebuyers, investors included.

The old adage that 'You make money when you BUY real estate' is just as true now as it eer has been, even in a market as decimated as Phoenix, Vegas, or large swaths of California.

As longa as any investment property you buy throws off profits at a cash flow level that fattens your wallet on a monthly basis as well as when you file your taxes, I say buy all you can get your hands on.

Canadian cash buyers will likely not only see appreciation over the next few years but also a small killing on the exchange rate as well. The USD has never been weaker and my guess is it will get stronger in the coming years. (Although don`t hold me to this...)

[MN-Born-n-Raised]

Originally Posted by Howard Roark

I keep wondering why a renter would choose a SFH over a multi-unit rental. .

I take it you don't have kids. If you did, you wouldn't wonder.

I don't want to worry if my music is too loud, if they guy next door is falling asleep with a cigarette in his hand, listening to other peoples conversation (or others listening to mine) with most multi-dwellings. The list goes on.

The biggest reason why people rent multi-dwellings is because of the economy of scale. A.K.A. it's cheaper.

[Captain Bill]

Originally Posted by MN-Born-n-Raised

I take it you don't have kids. If you did, you wouldn't wonder.

I don't want to worry if my music is too loud, if they guy next door is falling asleep with a cigarette in his hand, listening to other peoples conversation (or others listening to mine) with most multi-dwellings. The list goes on.

The biggest reason why people rent multi-dwellings is because of the economy of scale. A.K.A. it's cheaper.

Exactly. Apartment renters typically consist of young single adults, young married without kids and just starting out, a few who don't want to maintain yards, and others who can't afford a sfr yet.

Maybe times will change, but the American dream has always been to own their own piece of land. Most of the buyers I work with prefer a home with a large lot, with no other 2 story homes on the side or behind. That equates to the desire for privacy. Along with privacy is space. Most prefer a larger lot so as to give them distance from their neighbors.

The trend for smaller lots the builders were building on were small in order to keep the price of the homes lower. People buy them because they want a sfr and can afford the price; not because they particularly want a smaller lot.

When I was first married, we lived in several duplexes and were fortunate that the neighbors were considerately quiet, and we had to make the effort to be quiet also, which isn't easy when you have a newborn child. As soon as we could afford it, we rented a sfr with a large yard so we could have a dog for our then 2 children.

For the last 8 years of my airline career I shared a commuter apartment with several other pilots in Queens near the airport. These were row houses. Our unit was upstairs over the owners unit. If we walked too heavily on the floor, talked too loud, or had the TV on too loud, the landlord would yell up to be quiet.

Normally only one of us would be there at the time, and we were quiet, but the landlady was very cranky, and was annoyed by the least bit of noise. We tolerated that because the couple were actually very nice people; and we weren't there over 3-4 days each month.

My bedroom was right next to the bedroom of the unit next door, and their bed had very squeaky springs. Fortunately for me the guy was a 2-minute wonder so the noise didn't last long

People want sfr for these reasons, and possibly more:

• The American dream of home ownership
• Private yard for their children and pets
• Privacy from adjoining walls
• Space from neighbors

Moderator cut: snip

[Home Addict]

Originally Posted by autism360

There are some good deals left on Homepath/REO properties where for the 1st 15 days investors cannot put an offer in giving the 1st time home buyer a huge advantage because they only need 3% down and they have a 15 day head start.

From what I can see, homepath homes are no longer attractively priced. HUD homes, on the other hand, are still attractively priced. HUD homes also have a 30-day window for 1st time home buyer.