Do properties in Phoenix (or surrounding areas) cash flow?

[Ike Patel]

I am looking at possible out of state investing. I ran numbers on a couple of properties and the numbers Im getting are pretty low (1-2% ROI after capex/repairs/propertyMgmt). Wanted to hear if there's other experiences.

As a side note, Im also looking to set up a team to look after the rentals if I decide to invest so if you're an agent, contractor or property manager with OOS experience feel free to message me!

[Zach Wain]

In my experience as a lender, Phoenix is one of the better areas in the Southwest to be cash flow positive. We have numerous out of state buyers that come here for that reason to invest. If you are willing to put down 25% and get the best possible terms, you can be cash flow positive. I look at it from a different perspective, but you can get gross monthly rents of $1800-$2200 on properties that cost $325,000-$400,000. Rental mortgage rates are in the 3.125%-3.625% depending on the downpayment and scenario. Property taxes are cheap in most of these suburbs (Mesa, Glendale, Peoria, etc). Most have small HOA's, $30-$70/mo is pretty standard.

The rental we closed was in Peoria, $340k sales price with 25% down.  PITIA payment was $1464.  Rental analysis done by the appraiser was avg rents of $1850, but the client thinks he will get $1900+ a month...

If you start creeping into the $500k sales price range, the rents are pretty attractive as well...

I hope that helps