Duplex demand in Phoenix

[Kyle Gardner]

I've asked before but the market is always changing slightly. For Phoenix, what's in higher demand? 

-New, affordable duplexes that have 2 bedrooms in each unit? 550k roughly

-Or new duplexes with 4 bedroom units and a garage? 850k roughly 

[Mason Weiss]

More of my clients want the 4 unit. Return is better and higher rent potential.

[Noah Corwick]

The 4 unit for sure. The numbers don't work for most Duplexs in the greater PHX area which includes not great cap rates. Plus if you are able to add a garage, that will go a long way for anyone who has lived in PHX for anything longer than a year. 

[Jackson Harris]

Agree with the other guys. 4 units is best, you have more tenants and opportunity to increase rents if one or more tenants turn over. 

Happy to discuss further with you, sent you a PM.

[Kyle Gardner]

Thanks guys, Im more curious about 3-4 beds vs 2beds. 

Understandable to want 4 units. But for a duplex, affordable 2 bed units, or more expensive 4 bed units? 

[Noah Corwick]

Quote from @Kyle Gardner:

Thanks guys, Im more curious about 3-4 beds vs 2beds. 

Understandable to want 4 units. But for a duplex, affordable 2 bed units, or more expensive 4 bed units? 

At the rough numbers you mentioned previously, I would say the 4 bedroom units. 

But it also depends on the area of PHX you are targeting as well. 

[Ryan Ammons]

Quote from @Kyle Gardner:

I've asked before but the market is always changing slightly. For Phoenix, what's in higher demand? 

-New, affordable duplexes that have 2 bedrooms in each unit? 550k roughly

-Or new duplexes with 4 bedroom units and a garage? 850k roughly 

Are you planning to keep them as long term rentals for yourself or are you building to sell?

[Kyle Gardner]

Ill probably keep 3-4 and sell the rest. We've got 10 new ground up projects going right now.

[Ryan Ammons]

Quote from @Kyle Gardner:

Ill probably keep 3-4 and sell the rest. We've got 10 new ground up projects going right now.

 I tend to have an easier/faster time renting my 2 bedroom units than the larger ones.  Usually less time on the market and your renter pool is larger as well.  If you are building to sell and your profit margins are higher for the larger units, that may be a good argument for building bigger.

My rentals are in central and east Phoenix, so we have a lot of young professionals and small families we rent to.  Depending on where you are, you might have a different target renter than I do.

I have a couple properties we are looking to develop on, I'll send you a PM