First time buyer as rental investment

[Sohel Mahmood]

Hi,

This is Sohel. I live in California but increasing house price here is making me think to purchase a rental property first instead of buying first primary residence. I am interested in Phoenix area apartments, condos, townhomes where I can have positive cash flow with minimum hassle. I am new to real estate and trying to understand the pros and cons of out of state investment. Any suggestion is appreciated.

Thanks so much 

[Andrew McGuire]

@Sohel Mahmood

Phoenix used to be a very inexpensive market but since Covid has appreciated more than any other market. For appreciation Phoenix has diminishing returns, I believe investors still have reason to be optimistic when looking at population growth at an all time high vs. New SFH Starts is at an all time low, supply and demand are on our side but I still believe with how prices are now less people will move here over next decade. Major benefit that my out of state clients point out is that AZ is known as "non judicial" or Landlord friendly state compared to many states on the West Coast. I've had several clients to 1031's form their home state to AZ because of politics.