Vacation Rental Scottsdale Arizona

[Katharine Wright]

I am thinking of purchasing a vacation rental in the Scottsdale, AZ area. I would love to learn pros/cons regarding the vacation rental space in that specific market. Anywhere else in AZ that I should consider? Thanks! 

[Melissa Romano]

It's definitely a great market but also very competitive/expensive as others have noted. I receive a few messages a week from BP users looking for a $400K turnkey 3/2+ vacation rental with a pool, and that deal simply does not exist in Scottsdale. I've been able to find some nice homes $400-500K in Chandler/Tempe that could make good vacation rentals, but the yearly revenue is going to be lower than Scottsdale. If you're looking for a project, single-family homes in Scottsdale can be found in the mid-400s from time to time, but "turnkey" homes are going for 600-700k+ and then you'd need to budget to furnish. Personally, I'm a fan of condos (fewer HOA-friendly options but they are there for $200-250K) as they are more affordable and give more flexibility in case of regulation changes -- renting out a 1-2 bedroom condo for 30/60/90+ days seasonally will likely be easier and generate a better cash-on-cash return than a 4 bedroom home.