Quality of life but low cash flow?

Question

Hi BP, I'm thinking about relocating to Phoenix metro area from the suburbs of Philadelphia, PA. Arizona cash flow seems minimal & competition seems flooded but I dont think I want my kids to grow up in the sh*tty east coast weather & essentially grow up inside due to the intense cold in the winter & uncomfortable humidity in the summer. The suburb of Philadelphia that I live in cash flows nicely. Any PHX area buy and hold investors that cash flow 250-300+/ month after ALL expenses? Not sure if I should buy lots in my current town and then in a few years go to enjoy PHX or just go straight to PHX and figure it out? I'd like to hear your opinion. Thanks in advance.

Joseph ODonovan · Answer

@Cory Benhardt Wait, you'd rather have your kids live in a desert than experience a climate that has 4 seasons?

Bob Okenwa · Answer

@Cory Benhardt

Why not do both? Live in Phoenix and continue to invest in Philly. It's getting harder to cash flow without a substantial down payment, but it's not impossible. There are outlying smaller cities near Phoenix that aren't as sexy, but can still cash flow.

If you can stand the 115 degree days, it's pretty cheap to live here. It's a big city without the ultra-large city feel if that is something that would work for you. I'm partial to comfortable living first and figuring everything else out later, but that's just me.

Bob Okenwa · Answer

I don't have any buy and holds, but have heard of those who have cash flow in the surrounding areas like Coolidge, San Tan, Casa Grande, and Apache Junction.

Colleen F. · Answer

@Cory Benhardt  your decision is less about cashflow then family since you don't have to invest where you live. I have lived east coast by you (NJ) and  also AZ.  There are plusses and minuses to both. If you want to try phoenix it is best to uproot kids when they are small, then it easier to come back if it doesn't work out. The desert has its seasons too and there is northern AZ to visit to cool off. However, the reality is that phoenix in the summer is more indoor then out but you don't have to shovel winter snow.  We are back in AZ in the winters now and like it but quality of life is so much more then weather- its proximity to people, to family, and activities you like.  It is about where you spend holidays and with who. It is about support systems and It is about feeling at home in a place.  So consider all of those things with your partner before you pack the moving truck.  Now cash flow in Phoenix someone else can probably give you a better idea.

Cory Benhardt · Answer

@Gary Mac That would be great. I'll message you

Gary Mac · Answer

@Cory Benhardt

Rents in Phoenix here are high and rates are low. We are easily cash flowing 300 and are currently averaging 600+ with 25% down on new SFRs. If you are interested let’s compare some example properties.

Eric Welch · Answer

I’ve lived in Phoenix since 1999 coming from Southern California.  It’s only difficult from mid May to mid September.  To say you can’t go outside is crazy.  Baseball and soccer is played year round.  There are lakes, rivers and plenty to do even with the hot climate; however no other city has better weather from October - April.   Not California, Not Florida!  Nothing compares!

Stone Jin · Answer

@Cory Benhardt as a parent and resident of Chandler (suburb of Phoenix) I can tell you that you will likely be keeping your kids indoors all summer similar to all winter up north.  If you have the means I would encourage you to take a look at being a snowbird.  If it wasn't for the covid and having a baby I'd be up north right now enjoying late summer.  We invest in Phoenix area and Ohio.  Phoenix has been difficult to cashflow as @Bob Okenwa mentioned unless you are buying some cashflow with a downpayment.  We've had very good success in the midwest for cashflow and intend to invest more in the coming year.

Happy to answer any questions you might have.  San tan is far out there, from Chandler its a 30-45 minute drive.  The prices are as high as east mesa or apache junction.  If they ever finish building the freeway, it might be better.

Cory Benhardt · Answer

@Joseph ODonovan Yes absolutely lol PA weather is horrible

Cory Benhardt · Answer

@Bob Okenwa I think I would prefer to invest where I live. Do you have any buy & holds in AZ? I see that san tan valley could potentially be good for cash flow

Quality of life but low cash flow?

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