If you are thinking of expanding your investment portfolio, consider investing in the Phoenix real estate market! Investing in rental properties can give you the opportunity to generate stable monthly income and build long-term wealth.
Phoenix, Arizona is a fantastic area to purchase in real estate. However, if you are new to investing, you’ll want to do your own research so that you can make the most out of your investment.
In this article, we will outline some of our essential tips to follow when buying investment homes in Phoenix.
What Is the Phoenix Real Estate Market Like?
Due to Phoenix's rent growth and high price-to-rent ratio, more real estate investors are buying properties here than in any of the other top 30 markets in the US.
Phoenix is renowned for its great potential for real estate investing. With a lower cost of living, 300 days of sunlight annually, and skyrocketing job market growth, it's no wonder that Phoenix is in such high demand.
Phoenix is also topping the country in home price increases. This can be attributed to both buyers migrating from urban apartments to suburban homes as well as the high demand from investors for rental properties.
Top Tips for Real Estate Investments in Phoenix
Locate Your Margins
To make informed investing decisions, you must calculate your margins. Every purchase comes with future costs that must be considered. The goal here is to determine what these costs are and how much you'll need for an emergency fund.
Generally, these costs include maintenance, taxes, insurance, pest control, repairs, and landscaping.
You should also keep in mind that managing your property entails much more than simply collecting rent; you must maintain the home's habitability, which necessitates routine upkeep and repair costs.
Choose the Right Location
What kind of tenants you draw in and how much you rent or sell your home heavily depend on the location. You will want to find a property that is close to public parks, dining establishments, retail establishments, great schools, fitness centers, and more.
You should also think about your ideal tenant. For instance, if you want to rent to young families, choose a neighborhood in a strong school district with low crime rates and lots of family-friendly community events.
Consider the Type of Property
You must also take the type of property into consideration if you plan to invest in this city. Phoenix offers a wide range of possible rental types, from
With the ASU Downtown Campus, there is a constant need for student housing, so you may choose to cater to college students.
You could also select a plan that targets professionals or families with children at the same time. The Scottsdale region, which includes Old Town Scottsdale, is a wonderful location to start.
Gaining Knowledge of the Housing Market
Do you want to buy in a seller's, buyer's, or balanced market? Avoid making low offers on a property if the market favors the seller. The seller will have received market education from their realtor, and they will be aware of the value of their home.
You might be able to submit an offer that is less than the listed price and have it accepted in a buyer's market. Obtaining a Comparative Market Analysis (CMA) for the property you wish to purchase from is essential in any market.
In some cases, the first asking price for a home is competitive and already represents the fair market worth of the property.
Think About Hiring a Professional Property Manager
Always keep in mind that managing your home entails much more than just collecting rent. The daily responsibilities of managing your own rental property can be overwhelming, especially if you have multiple rental units.
Self-managing your Phoenix property involves tasks such as rent collection, marketing your property, tenant screening, accounting, and ensuring that you are always compliant with federal and Arizona landlord-tenant law.
As mentioned above, you will also be responsible for ensuring that your rental unit is in great living condition, and any repairs or maintenance are promptly taken care of.
Responding to emergency requests and concerns from your tenants is also crucial. You will need to be available to take calls whenever they come in.
This might all seem daunting, but should you choose to partner with an established property management company like Service Star Realty, we can relieve you of all your managerial responsibilities.
You can trust that our team of experienced and reliable property managers will take the greatest care of your property and your tenants.
Why Hire Service Star Realty
Here at Service Star Realty, we specialize in full-service property management services for both landlords and homeowners. We cater our services to you so that you can find the best possible support for your property.
Our committed team members will help you locate the right property for your needs, whether you are searching for a single-family home, townhouse, or condo.
Service Star Realty
2929 East Camelback Road #119, Phoenix, AZ 85016