Thread: For Canadians Investing In Phoenix, AZ

Originally Posted by JackEdwards

Are you concerned at all that your agent is really in the rehab, let's find investors business, instead of the let's make the best deal for Rickson business?

Good question, but I'm not concerned about that, no. It's been useful when I purchased property and needed them fixed up because the sellers were angry when they left.

Over the next couple months if I continue to lose out to bidding wars, I'm going to have to step back and think about what's the best deal for me. The market is transparent and blunt. I will flow with what the market gives me.

Originally Posted by JackEdwards

And/or are you just giving him leads?

It works both ways. I give him ideas and ask what he thinks, he gives me ideas and asks what I think.

Originally Posted by JackEdwards

I don't do anything with real estate. Not my interest, but one of my employees dumped there mom's old house, it was on the market 3 days. I think things are heating up.

I scour the MLS a lot and I noticed listings disappearing faster than normal and property where prices used to be $x, but are now $x + 25%.

Now I'm starting to lose out in bidding wars.

Is Phoenix a "Sellers Market" in the $250K price range then?

Does it look like flipping is the right thing to do at this time in that price range?

Originally Posted by andviv

Is Phoenix a "Sellers Market" in the $250K price range then?

Does it look like flipping is the right thing to do at this time in that price range?

I don't know. I'm going to follow what my agent is doing while doing what I'm doing and make that determination for myself this year. I've looked over the financial spreadsheet on his flip and told him that his return was wrong. It's closer to 10% over 6 months for the flip. That's not compelling for me at the moment.

I want to speak with his investor to see why the guy even bothers. In the meantime I'll keep fishing for rentals in Phoenix.

Originally Posted by andviv

Is Phoenix a "Sellers Market" in the $250K price range then?

Does it look like flipping is the right thing to do at this time in that price range?

Yes, it's absolutely a seller's market in the $250K price range.

Flipping is getting harder to make a profit like 'back in the day' -so many bidders at the auctions are squeezing the profit margins right out the door. It's still do-able, but it all depends on the margins you want to make & if the current margins are worth your time.

Here are a few more tools that I've found useful:

Use Date Range to expand the dates (I think it defaults to 14d) and add "Property crime" and "drugs" (or whatever else you want) to the Incident Layer.
Crimereports.com

A more local version of the same thing. However, no dates as to when the incidents occurred.
My Neighborhood by AZCentral.com

I enter a zip into Search This Forum and read the posts.
City-data.com

If I'm not sure I cross references these sources with my agent and PM.

Just adding some more info.

As a general rule, in the U.S., the red states are pro-landlord and the blue states are pro-tenant. The most well-known of the pro-landlord states are Texas, Arizona, and Florida.* The most well-known of the pro-tenant states are California and New York.*

Red states and blue states - Wikipedia, the free encyclopedia

Eight Landlord-Friendly States

#4. Arizona
Arizona has strict laws regarding noncompliance with rental agreement and nonpayment of rent. For example, if a tenant provides false information on the rental application, Arizona landlords have the right to deliver a written notice to the tenant and terminate the rental agreement within 10 days.

8 Landlord-Friendly States – InvestRent

Arizona is becoming more landlord friendly with the following recent trifecta of rental laws:

1) The first allows landlords to enter a unit without the standard 2-day written notice in the event of a needed repair.

2) The second bill deals with abandoned property. A landlord will be able to enter a unit without giving legal notice if needed to determine if the tenant has moved out. If there is no personal property of “material value” left in the unit and a “reasonable person” could determine that the renter has moved out, then the landlord can take over the unit.* The landlord will not have to store any perishable items.

3) The third measure, which may be the most controversial, rolls back tenants’ legal rights regarding appeals of an eviction order or judgment for unpaid rent. This measure requires the posting of a much higher bond than what is required under current law.

The Arizona Tenants Advocates are warning tenants that making a repair request means giving up the right to notice of entry for the rest of the lease; if a tenant moves out, they could be excluded from renting somewhere else for the next 30 days; and, if a tenant legally terminate a lease early, they still forfeit their security deposit.

Landlord Forms | American Apartment Owners Association

In addition, I have had questions about Phoenix's "primary industry" or "underlying economy".*

Manufacturing. Major industrial products manufactured by companies located in the metropolitan area include aircraft parts, electronic equipment, agricultural chemicals, radios, air-conditioning equipment, and leather goods. Also financial services and banking. Regional headquarters of: American Express, Chase Bank, Bank of America, Discover Card Services, and Wells Fargo Bank. High technology and aerospace firms hold a considerable share of the manufacturing jobs.

Phoenix is currently home to seven Fortune 500 companies: Allied Waste, electronics corporation Avnet, Apollo Group (which operates the University of Phoenix), mining company Freeport-McMoRan, retailer PetSmart and energy supplier Pinnacle West. Honeywell's Aerospace division is headquartered in Phoenix, and the valley hosts many of their avionics and mechanical facilities. Intel has one of their largest sites here, employing about 10,000 employees and 7 chip manufacturing fabs, including the $3 billion state-of-the-art 300 mm and 45 nm Fab 32.

The city is also the 6th most populous city in the U.S. with over 4.2m Americans and growing. Phoenix is located at the center of market areas stretching along interstate highways from southern California to western Texas, Colorado, Utah, and Mexico. More than 50 companies provide motor freight service. Rail service is available from two transcontinental rail lines. The Phoenix metropolitan area economy benefits from air cargo service through Phoenix Sky Harbor International Airport, where American Airlines and American West provide wide-body freight service.

Thanks Rickson.

Have you found more deals recently? How's the market these days, in your opinion?