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Investing in Phoenix real estate can be a lucrative and rewarding way to earn some long term appreciation and even some cash flow if you structure your acquisition the right way.
Zen Rent manages single-family homes, condos, and townhouses in and around the Phoenix area, including in Mesa, Scottsdale, Chandler, and Gilbert. We’re using our expertise in this local market to share some thoughts about what you need to know before you invest in Phoenix property.
Growing Population and Economy
The Phoenix metropolis is an excellent market for investment because of its size and the pace with which it is growing. Over the last year or two, it’s been one of the fastest growing cities in the U.S., and that’s excellent news for real estate investors. The economy is doing well, and new jobs and industries are arriving in the area all the time. While it still serves as a popular tourist destination and vacation rentals are a great idea for making money in real estate, it’s also easy to find long term tenants who want to reside in the Phoenix area for at least a few years.
There’s no reason to believe the economic growth will stop. Population numbers continue to climb as residents look for places to live with a high quality of life but a lower cost of living. It’s far less expensive to live in Phoenix than in San Diego or Los Angeles. Investors can count on growing and more diverse economic trends for a few more years.
Diversity in Available Investment Opportunities
There’s a lot of diversity in what you can buy as a real estate investor in Phoenix and the surrounding areas. The suburban markets are growing, and it’s easy to find a new home with all the features and modern amenities that tenants are seeking. There are also a lot of multi-family properties on the market; if cash flow is your main investment priority, check out some of the fourplex properties or small apartment buildings that can help you earn income quickly while your returns gain strength.
Scottsdale is a particularly strong market for investors right now, and units in downtown Phoenix are popular for millennial renters who want to be in a walkable area. When you’re looking for a Phoenix investment property, make sure you’re studying the demographics and the local tenant pool.
Increasing Rents and Values
The rental market in Phoenix is strong, and it’s rare that a vacant property is on the market for more than a week or two. Investors have a strong pool of potential tenants, and they can be highly selective when it comes to marketing and tenant screening.
Rental values are also on the rise, and even if they stabilize over the next year or two, they will provide owners with some reliable rental income that leads to a successful portfolio. Most properties in and around Phoenix are also appreciating in value, leading to higher sales prices which also creates a strong tenant pool.
If you have any questions about investing in Phoenix or you’d like some help establishing what your likely rental value would be for a particular investment, contact us at Zen Rent. We’d look forward to telling you more.
