Rental Market in Prescott/Prescott Valley

[Matthew Lessard]

Hi All,

I am looking for my next investment (currently have a single family home in Phoenix that I rent) and my target is a multi-family unit. I have researched the rental market in Prescott/Prescott Valley and appreciate any insight about investing in that area.

[Serge S.]

@Matthew Lessard Northern AZ is a fantastic market. Scarcity, slow growth in construction and high rents is the name of the game. Price per door is also going to be higher for similar quality than in metro PHX. Most profitable strategy is no HOA SFR or small to mid size multi with a heavy slant on vacation rentals. Also look at Camp Verde, Cottonwood, etc. There is a 30 unit with a great location in Prescott close to Whiskey Row at over $100k/door. Inventory is scarce but I would not hesitate on the Northern part of the state. Also keep in mind the weather is quite harsh on the typically wood construction. The swing from below freezing and snow to 90+ summers will lead to higher maintenance expenses than in metro PHX.