Profiting on Phoenix Arizona’s growing rental market
Posted by AZF Contributor on 6/01/11 • Categorized as Buy and Hold Investments,International Home Buyers
Metro Phoenix foreclosure homes are selling at a record pace, and almost half are being turned into rentals by their new owners, most of which are investors. Properties are selling in many areas of the Phoenix Metro Valley at deep discounts of $60,000 to $80,000 on homes that once sold for $200,000 plus. Many of these distressed homes are in desperate need of rehab services before they can be rented but with modest fix-up costs ranging $10,000 to $15,000 our investors are making gross margins of 35% or higher.
Many buy and hold investors are buying homes in multiple at these prices and reaping the rewards from the current rise in rental prices directly related to inflation and the devaluation of the US dollar. Another resource for snatching up profitable rental properties, is through trustee sales. Buying homes at trustee sales before these homes go back to the banks is key to buying positive cash-flow investments.
We provide our clients with multiple market value assessments including a tax records value and 2 MLS comparison values based on a cost & square foot approach. Our proprietary database of foreclosure properties provides easy to read “quick view” profit margins based on the opening bid values and averages of the comparison values so you can make instantaneous decisions about which properties you wish to purchase.
