Torn

[Justin Owens]

I have been looking for my next purchase for months mostly for 2-4 unit properties and some SFR but it seems I have to choose between C/D neighborhoods at $70k per unit, or B neighborhoods at $125k per unit. I have looked mostly in Phoenix and the east valley. Finding a SFR under $200k generally means it needs tons of work or in a terrible neighborhood, or both. The valley has terrible cash flow and good appreciation in general but when it gets to where we are now, how much more can it appreciate given local incomes?

On the latest podcast about the guy who had $10k and grew to 52 units in 3 years - wow that just wouldn't be possible here. 

I have about $50k in savings and a HELOC with about $180k available. With these constraints I have been looking in South Phoenix and Mesa mostly. The Globe/Miami has much lower price points but seems like a dead market. Casa Grande is also cheaper and the strongest in the area (Maricopa, Coolige, Eloy, Florence, etc.) BRRR seems impossible to do finding properties at 70-80% at of market value. I have been tempted to buy out of state but don't have any boots on the ground and not sure I could vet a turnkey operator enough to feel comfortable.

Where to make my play?