Scottsdale vs Tempe which is best to make money with VRBO

[MiChelle Murdock]

Hello, I am a new investor that has to do at 1031 Exchange rather soon. We have narrowed it down between Scottsdale and Tempe but I'm also considering Chandler snd/or Gilbert In Arizona. From what I've read these areas should be fantastic for more of a short to long-term investment. I believe Gilbert might be turning into a Old Town Scottsdale if I'm not mistaping? I am wanting to purchase a three bedroom two bath home with a inground pool and air conditioned home. We don't mind somewhat of a fixer we have flipped many homes to get to where we are at. This is my dilemma, I would like to keep the VRBO as busy as I can to make the most that I can. We will also utilize it as Snowbirds as needed. Our end goal will be to live in Scottsdale later down the years. With that being said we are interested in Tempe and Scottsdale because of the party scene, people like that party scene with restaurants and nightclubs, the mini Vegas so to say. I think Chandler is a great up and coming area because of Intel and the professionals that would be renting. I think Gilbert if I'm not mistaken is changing ito the nightclubs ad well?  We would be renting to professionals/adults as a short-term and/or midterm rental market. I like Tempe because of ASU. The party scene people like when they vacation. However, I would never rent to students only to parents and sports players. Golfers,players coming in for spring training. Etc. We've thought of doing midterm in all areas meaning over 30 days we do not want anything renting as a long-term rental. We have been burnt severely, it took us a year to get someone out with $30,000 worth of damage in addition to $30,000 in attorney fees. Where do you think it would be best for us to purchase this home with our 1031 exchange to make the most money we can. We are on fixed incomes with disability so this extra income would be perfect for passive income for us. I would like to utilize some of the space as well so we will lock out the garage for our own personal belongings. Any advice would be so helpful as we are very new to this area and as an investor. Thank you in advance whatever helps will be very helpful to us.

[Mason Weiss]

Hi @MiChelle Murdock, with potential heavy STR regulations coming to Scottsdale, plus over saturation of short term rentals, I would focus on Tempe. Gilbert and Chandler are decent investment areas but still highly suburban and more geared towards mid term and long term renters. If you don't want to wait five years to start generating extra income, I would want to be close to Tempe where renters can easily visit Scottsdale and Phoenix and you would have the largest potential renter pool.

I own a short term rental company and just helped someone find a new short term rental two weeks ago here in Arizona. If you want to talk further let me know!