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Arizona Real Estate Q&A Discussion Forum
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Updated over 5 years ago on . Most recent reply

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70
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Albert Gutierrez
  • downey, ca
13
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70
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Worth Investing in Arizona?

Albert Gutierrez
  • downey, ca
Posted

How are the CF and Equity build ups in Arizona? worth it as an out of state investor?

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2,782
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Shiloh Lundahl
  • Rental Property Investor
  • Gilbert, AZ
4,363
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2,782
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Shiloh Lundahl
  • Rental Property Investor
  • Gilbert, AZ
Replied

@Albert Gutierrez to be honest, I don't look at cap rates when I invest. I look at cash flow vs. what I have left into the property after I have refinanced the property into a long term loan. With that being my metric, I think Arizona is wonderful. On most of our deals, we are able to acquire with only a few thousand dollars left into the property after we use the BRRRR strategy combined with the lease option strategy. And with most of our properties we are able to cash flow $200 or more per door. But, I should let you know that we have systems in place that help us acquire discounted properties, rehab them inexpensively, and lease option them out for a premium rent and a $3900 option fee. So the average investor in Arizona probably does not get the same returns that am able to create in the same market. I don't say that boastfully, I say that to give a proper perspective so that new investors don't jump in with unrealistic expectations.

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