Buy and hold in Phoenix, Arizona

[Nico Ryan Iral]

Hi, I'm new to this forum and I'm interested in starting a buy and hold real estate in Phoenix, Arizona. Is it still a good place to buy and hold? Anyone who has a good experience with an inspector, investor's agent, and contractor and is willing to share some information please let me know. I'm currently doing my homework in some areas but any help would be very much valued and appreciated. Thank you and hope to hear from you soon! 

[Ben Leybovich]

Well, my wife is going to yell at me now, but Phoenix SFR and small multi market is done. I'll give you some examples:

You can buy a 2x1.5 townhouse in Chandler right now for about $180,000 - $190,000 which will rent for $1,200 tops. If you spend $220,000 you can get $1,500 - $1,600.

The thing is, I just syndicated another community. This one is 117 units that are a mix of 1x1 and 2x2 units, but at $11M this only cost me about $91,000 per door. My rents on the 2x2 are going to be $1,125 - $1,150. Half the price of that townhouse, but only marginally lower rent.

As bullish as I am on large multifamily, the small stuff is pure speculation on appreciation. You are likely to get some, in my opinion, but I see that as dangerous.