Arizona Real Estate Market

[Ravi Singh]

I would Like to get some feedback on AZ RE market . What cities are good for flips in AZ & if the returns/spreads on rehab properties are better than CA.

[Bob Okenwa]

Hey @Ravi Singh

To be honest, there aren't too many cities in Arizona with populations of more than a few thousand. You have Flagstaff, Phoenix Metro, and Tucson and that's really it as far as notable cities with remotely significant populations.

I've been here for about 15 years so I can only speak for Phoenix, but the spreads here can be nice, but only if you find off-market deals. Wholesalers are known to be very generous with their listed spreads and ARVs so you'll want to verify anything you receive from a wholesaler because 95% of what they send usually has embellished numbers. You'd be better off finding your own off-market deals so you can truly get the spread you're looking for.

The area within Phoenix that are worth investigating are the historic districts near downtown Phoenix, Scottsdale, Tempe, Chandler, Gilbert, central Phoenix, and parts of north Phoenix as well. Every house here isn't worth 500k like it is in the coastal CA cities, but you can make a decent profit if you do your homework and have solid, verified numbers before you get started on a project.