Phoenix Arizona Investment Property

The hardest hit of all 20 cities on a year-over-year basis was Phoenix, where home prices plummeted 30.7% during the past 12 months. Las Vegas prices plunged 30.6% and Miami sank 28.1%.

Homes are selling for under 100K through out the Metropolitan Phoenix Market. The only question you need to ask yourself is:

Can this investment property be leased out for at least $600 per month?

That seems to be the going base rate for single-family homes in Phoenix Arizona.

For the most part these are not luxurious Cadillac homes, but overall good rentable condition: 1,400sf and above, stucco and tile, built 1995 or later, with back yards and garages. Phoenix investment properties of such attract good renters — $800 per month and above in most cases — and many of them will be appealing to owner-occupants on resale a short while after the market takes a turn for the better

Phoenix Investment properties make good sense when leveraged to the point where the rental income covers all costs to acquire and maintain.  Most mortgage lenders require 25% down for the best rates available today.  On a $100,000 Phoenix investment property purchase price, that means that an investor will need some $30-35,000 for down payment, closing costs, and repairs to make the investment home tenant-ready.  A $75,000 loan will most likely have a PITI payment of about $600.

"Don't be afraid to be one of the first in line to reap the benefits of this down, but not out Phoenix Investment Property market.

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The latest National Association of Realtors read on the housing sector shows an industry still in shambles, but a bright spot in Phoenix Arizona.

According to the group’s third-quarter report, the largest sales gain among states — 28.3 percent over the second quarter — was in Arizona. Of course, California and Nevada were close behind. 

According to research from Arizona State University Realty Studies, the high rate of foreclosure homes is pushing down home values across Greater Phoenix. For the traditional or as we like to call it straight sale (non-lender owned) sales market, the median price of a subject resale home in Maricopa County was $175,000 in October, while foreclosed properties had a median price of $159,775.  One year ago, the median prices were $250,000 and $218,225, respectively.  RealVision Group has a Market Review Newsletter of the Metropolitan Phoenix area that will keep you current with the investors real estate market.

According to NAR, distressed sales – foreclosures and short sales – accounted for 35 to 40 percent of closed transactions in the third quarter, pulling down the national median price for resale homes to $200,500. That is 9% lower than the third quarter of 2007. Great time to step out of your safety net, and become an active investor in the Arizona Real Estate Market.