Phoenix Housing Market 2017

[Grant Smith]

Hello Everyone! My name is Grant Smith and I am looking for my first deal in real estate. All of you have been in my spot at one point in time, and I am eager to get my feet wet. Do you believe that now is a good time to start my first fix/flip or long term hold deal in the Phoenix Area? Thanks, any advice or help is greatly appreciated!

[Kurt Pourbaix]

Originally posted by @Sam Grooms:

Kurt, what do you consider a good cash on cash return? Also, what area of Phoenix are you looking in? 

"Good" is different for everyone. And even the calculation itself can vary as we estimate maintenance, vacancy, capex, etc and those aren't the same from one property to the next for a variety of reasons. Most of my properties return 15-20% COC, and that is my target personally. Good COC is maybe about 10% for most people? The good properties (good condition, good neighborhood) that I have looked at in and around Phoenix were quite a bit lower than that. They are even lower in parts of Colorado where I live. There are plenty of markets where you can get 15% plus, but over the last year in Phoenix, prices have shot up and rents have not changed that much, pushing returns really low.