2020 Arizona Rental Property

[Michael Mai]

Hey All - 

New to Biggerpockets and excited to learn from this great platform! A little back story, originally from NJ then relocated to Mesa AZ for work - purchased my first property in 2014 since it is cheaper to buy than rent. Faster forward to now, my job relocated to San Diego, CA so I turned my AZ home into a rental. 

I do plan to purchase a small owner-occupied home and house hack in San Diego, just waiting for the right property at this point. In the meantime, looking to do a cash-out refinance to purchase another property in AZ sometime this year. 

I realized I like the AZ market better and would prefer to invest in AZ. Feel free to message me directly or drop a message below, I would love to connect with anyone in both San Diego or AZ to discuss more

Cheers and stay safe!  

[Melanie Johnston]

Hi @Michael Mai, welcome to BP! I am partial to the AZ market as there is a diverse economic base, lots of people moving here and good weather (except for the summer months) to enjoy the outdoors. Our most prominent market analyst, Tina Tamboer, who publishes the Cromford Report, spoke to AZREIA last night and broke down the stats for our current market.

We are in a seller's market still, because supply is so low (at 14,400 active listings that's roughly half the 30,000 listings we would have for a balanced market) and, while demand is declining, understandably considering the state of our nation, there are still buyers in the market. The fact that hedge fund buyers have put their cash on ice means that others can compete for those homes (and it also contributes to the higher inventory, which their purchases would have kept from making it to market).

Having said all that, Tamboer does not believe we are headed for a market crash, but she does think there will be a window, perhaps starting in the next 60-90 days, where there will be fewer buyers, people won't be able to reenter the market until the economy picks up steam and sellers selling at that time will be motivated. Maybe that's your chance.

Congratulations on building your portfolio!

Melanie