Whats the market look like in arizona for multi families?

[Kevin Schulte]

So i'm in green valley (south of tucson) and considering multi family investing (leaning toward mobile home parks but open to options at this point)

Can anyone give me an idea of what our narket is doing? Do small MFH's exist with room for value add? Or is everyone selling stuff they purhased 3 years ago and stabilized and fixed up as turn keys?

Obviously thats rather broad for the whole state but maybe aome insight from northern az vs phoenix vs tucson? How are cap rates? Cash on cash? - are we at the peak and smart money has gone farther east?

[Casey Miles]

Hi Kevin,

There are always exceptions obviously but generally speaking the margins on cash on cash and CAPS are smaller the farther north you go here in AZ. Tucson having better #s than Phoenix, Phoenix having better #s than Prescott, Prescott having better #s than Flagstaff. I've seen property outside the populated areas that have better numbers on paper but you might have a vacancy issue. 

There are lots of MF repositions in Phx right now buy there not even 3 years old. I probably did the quick math on 10 properties yesterday. All but one (if I recall correctly) hadn't been bought/sold in the last two years with over half being bought/sold in the last year. I will admit that I don't look at market data as much as some and I mainly take an individual approach on properties to see if they work for me. With that said we're at a peak for me personally. There are still people buying buy it's not me.

Be patient in your search but be ready to execute when that perfect property comes along.

Good luck in your search,

Casey