Investing in Phoenix

[Bradley Snyder]

Hello,

I am looking to buy a home in the Phoenix area using my VA loan. My realtor found a home in Sunnyslope that was a 3/1 with an 2/1 in the back, that would of been a nice rental. We did a video tour (I'm out of state) and the house looked nice and numbers sounded promising. The house had been on the market for only a few days and by the time my agent called it had a full cash offer on it. This surprised me, since when I live in Phoenix that was a historically pretty rough part of town and from what my realtor told me the neighborhood is still pretty rough looking. Is this typical for the Phoenix market? Any suggestions for similar areas that might be heading towards a turn around?

Thanks,

Brad

[Ingryd Hernandez]

@Bradley Snyder here is some perspective which is less on what up and coming areas are in AZ but rather a hollistic point of view on the market.

At the lowest inventory point through the bubble before the great recession, we dipped to about 9K to 10K active single family homes - even that was considered a 'tight' market. Now, as one of the hottest population migration states in the USA, we've dipped to below 3,500 active single family homes on average for the last month.

Location could be good, bad or otherwise but the inventory is critically, historically low. If you don't have cash for $350K or less, be ready to go on a rough ride and hope your agent is building relationships to help you get an edge.

I am pulling properties that have been recently purchased by an LLC and seeing if I can get my buyers to see it before it's even complete. If we can get an offer in before it's officially back on mls, than maybe we have a shot while saving the flipper their holding fees and commission fees but still alllow my buyers to utilize their loan.

You want a creative agent because the typical 'wait to see what's on mls' isn't going to cut it for loan buyers.