Best Cities for STRs in Arizona

[Brian G.]

What cities perform best as vacation markets in AZ? Price point $600k or under. Thanks!

[Logan Williams]

Quote from @Scott E.:

Quote from @Logan Williams:

I tell my investors to be on the look out for Glendale properties, with the next Super Bowl coming to Az.

 That is horrible advice and makes me cringe. You are telling your clients to invest their hard earned money in an area that is hosting a 3 hour football game next year?

Hey Scott, thank you for the feedback. I probably should've given this post more color.
Glendale has been a target for many of my investor clients for a few reasons:

1. The entry price point is significantly lower on the west side (more opportunity for mom & pop investors, as well as the folks who have the capacity to take on between 4-5/monthly). I'm sure you'd agree that there's a lot of value in having greater access to affordable inventory in close proximity to your other projects to keep your crews' hands busy and to make your business easier to manage.

2. According to my AirBnB clients (many of which are much more successful than I): They'd be good properties to hang on to in the short term. You could cover a year's worth of your mortgage in 2 weeks if you position yourself correctly come time for the big game. Many of them expressed to me that they'd like more inventory around Westgate and near Cardinals Stadium. I've found that many of the aforementioned neighborhoods don't have an HOA, which is where they typically run into trouble with their rentals.

3. Some of my more patient, savvy, and creative clients decide to mix the two strategies above, and will hang on to these as rentals/airbnbs for about a year (get about a years worth of appreciation/equity for essentially free), and let the active Flippers in the area drive prices up around them, and then fix/sell in about a years time - forcing a much greater return on their investment.

4. With many end buyers being priced out of the East Valley, I've found that many of them are considering Glendale/West Valley due to the fact that their dollar gets them a lot more house and they can still enjoy being in the mix near Westgate. I can pay $800k for a 1200 sqft house with a pool in saturated South Scottsdale, or I can pay $500k for a 2400 sqft house with a pool on half an acre in Glendale. It seems like a no-brainer for those who value space/size over being in the mix.

Additionally: I'm sure you're aware of the interest rate situation and how that will affect the buying power of those looking for a remodeled SFR.

5. I've found that much of the Glendale inventory is 1980s builds or newer; as an investor I'm sure you understand the value of not having as many surprises in the walls/plumbing compared to central phx 1940s builds in that price point.

If you have any thoughts on this topic, I'd be happy to discuss further. At the end of the day I have no desire to argue or "be right" - the more informed I am, the better I can serve my clients and customers.