Multi family Property Investment in Arizona

[Jose E Ramirez]

Hi All,

I'm looking to invest in Multifamily units in the Arizona, probably in the 1mil to 1.2mil range...location is very important since I don't live in that state.

Any recommendations as to where are the best areas?

[Serge S.]

@Jose E Ramirez $1M doesn't buy you too much today in AZ. Best bang for your buck will be tertiary markets south of PHX but those markets will have PM risk that you won't be able to stomach. That leaves you PHX metro and your probably looking at 8-10 units in a suspect neighborhood. You will end up with a $5k-6k gross rent roll, plenty of capex and a building thats small enough that nobody competent wants to manage it. Your seller will be CA or Canadian that purchased 3 years ago for half of what your buying it for and your seller will have purchased from a local at 50% below that number. Why bother? That is the exact investment class that will lose 80% of its value in the next downturn.