Are you looking to reap the benefits of the housing market? The options in and around Phoenix make it an excellent investment opportunity, all you have to do is find the right property!
Phoenix was ranked 5th in terms of affordability in a survey conducted by USA Today. No wonder investors can’t get enough of the city!
What’s more, there’s a growing population and the occupancy rates are looking good. As a landlord this is great news for you, as this growth ensures a stable pool of prospective tenants for your long term rentals.
Property investing has many unique characteristics that set it apart from others. For one thing, it more durable than other forms of investment and has the potential for very strong turns.
Similar to other investments, due diligence when working with rental properties is critical. Before committing to a property, whether you are a new investor or a seasoned one, you must perform extensive research.
In this article, Taylor Street Property Management will seek to unpack the technicalities of the Phoenix market. Furthermore, we will guide you on what to look for in your next investment property.
With this guide, real estate investors can grow and diversify your investment portfolio.
What is the Phoenix Real Estate Market Like?
Understanading the property market in Phoenix and its terms is important. The Phoenix metropolis has a population of 4,584,000. Few areas in the United States can boast such numbers.
This increase in population can be attributed to the investments made by technological and software companies. Just last year Zoom announced that it will be opening a new research and development centre in Arizona.
With similar companies investing in the area, Phoenix is bound to have an increase in both population and investment opportunities. The area is also home to the University of Phoenix which draws in large numbers of students in need of affordable housing.
This bodes well for prospective property investors looking to draw in families, working professionals and college students alike.
Here are some tips to keep in mind when looking to invest in Phoenix.
1. Know Your Budget and Investment Goals:
Phoenix offers investors a wide range of choices as the median sale price is lower. To help you make those decisions ask yourself:
- Are you looking for short-term or long-term rental options?
- What kind of property are you looking make a real estate investment in?
- What’s your budget for a down payment and what interest rates are you looking at for your potential investment properties?
- What kind of tenants are you hoping to rent to?
Once you’ve answered these questions and perform extensive research you’ll be able to find a property and neighborhoods that align with your goals and have a decent home's purchase price.
2. The Numbers Don’t Lie:
They say the numbers never lie and this is certainly true in the real estate markets. We cannot overemphasize the need to sit down and crunch those numbers when considering your investment properties. You have a number of tools and resources at your disposal including professionals in the industry. Make use of them!
When calculating the cost of investing in a property it’s easy to focus on how much money it can potentially generate but you have to consider all your expensive as well.
Make sure you've considered:
- How much you’re willing to pay for a property
- Whether you are in a seller's market or not
- How much you can put in for a down payment, acceptable interest rate, and what your closing costs may be
- How much you’ll reasonably be able to charge for rent
- What your monthly upkeep costs will be
It is only once you’ve considered all those factors that you'll be able to confidently make a good investment.
3. Find the Right Location:
Location plays a big factor in what kind of tenants you attract, home values and how you can market your property.
You want a property in close proximity to plenty of attractive amenities like public parks, restaurants, shops, gyms and has decent housing prices and competative median home prices.
You also have to consider who you want as a tenant. For example, if you’re looking to rent to young families setting up roots in the region, you need to pick a neighborhood in a good school district, competative purchase price, with low crime rates and plenty of family-friendly community activities like hiking trails.
4. Consider Professional Property Managers:
As a new investor in Grand Canyon state property, the real estate industry can be tricky to navigate. The services of a professional property management company can come in handy as they can help you find the right location, property and tenants.
They can also help you manage you rental property by taking care of tenant screenings and rent collection, marketing your properties, managing maintenance, rental income and repair requests, and so much more.
5. Home Inspections and Maintenance:
Pests, weather damage and other maintenance issues are a real concern for a property owner. But fear not, the state of Arizona allows 10 days for a prospective buyer to perform an inspection!
You should considering hiring the services of a home inspector when looking to buy a property. Their expertise can help you ensure that the property is rent-ready or at the very least only requires small, cosmetic changes.
What’s more, depending on the inspector findings, you may be able to use that information to bargain for a more favorable price giving you a good investment.
In a Nutshell: Real Estate Investing Tips in Phoenix
The investing in real estate requires patience and diligence. With adequate research and the right team by your side, you could see big returns on your Phoenix investment property.
When looking to invest, consider hiring a property management company. Taylor Street Property Management has been leader in providing property management services.
Call us today and our team of real estate agents and experts will provide a customized plan that meets your every need!