Real Estate Agent · Scottsdale, AZ · Member since 2019 · 20 posts · 7 votes
As an investor are you looking to buy or sell in the PHX market? I have heard mixed reviews from some people. I am curious what the community on BiggerPockets thinks!
Half million dollar question. I have one in Queen Creek that has done incredibly well and I intend to take the money and run. My realtor has given me the number of 16k to 20k available listings until it becomes a stable market. So looking today, I believe there were just over 9k available in the greater Phoenix area. Timing is everything so for now holding but watching the number of available properties closely.
So based on your numbers, this particular market would seem to have aways to go. I know a previous reply said he was a buyer. I just find myself questioning about paying $500k+ for a rental in the east valley.
Real Estate Broker · NY · Member since 2021 · 21 posts · 18 votes
4y
Always be a buyer if the numbers line up. Sell when you find an alternative place for your money with better overall returns (deal, cashflow, tax, etc).
Flipper/Rehabber · Phoenix, AZ · Member since 2016 · 254 posts · 100 votes
4y
Both. It all depends on the numbers.
I never like to sell off an asset, unless I know I will be taking the money and investing in something better. We purchased a triplex in Q1 that is close to stabilized and cash flowing great for us. We just hit our 2 year mark in our live in flip and have nearly 200k in equity, so we decided to go buy another fixer upper and plan to use the other proceeds to find another small multifamily.
Caveat - Yes, interest rates are worse. Yes, prices keep rising. Yes, my mortgage is higher lol. But live by your numbers and your criteria and you can make it work.
Wife will be entering the beginning stages of retirement with in the next year. Goal is to have our primary paid off, my current realtor feels that selling a rental to accomplish this is a reasonable chain of thought. Versus letting a sense of panic set in and sell and let the cash sit, which I totally get. So with the housing market changing pretty quickly in the east valley, sell now or when my wife makes the move to retirement in 9-12 months? Would love to here others perspective.
Half million dollar question. I have one in Queen Creek that has done incredibly well and I intend to take the money and run. My realtor has given me the number of 16k to 20k available listings until it becomes a stable market. So looking today, I believe there were just over 9k available in the greater Phoenix area. Timing is everything so for now holding but watching the number of available properties closely.
on the Arizona MLS there's currently 14,828 (active 13,923) and (coming soon 905) residential properties. on 06/26/2022
in April 2022 we had 8,726
in beginning of June we had 11,371
Supply is increasing and I'm seeing more price reductions and some properties come back on the market.
we still have less than 6 months of Supply but it is increasing and there are less people competing and submitting offers
If you’re talking about selling a rental property I wouldn’t sell as retirement is the best time to have that extra income coming in. If you are going to sell a rental you definitely want to wait until after she retires to put you on a lower tax bracket.
This all assume you are living in your dream home. Otherwise you would of course do a 1031 in to your dream home and a couple years from now decide it makes a bad rental and move in to it while selling your primary tax free.
I’d love to be a buyer but with prices and rates rising I have to wait until I can do an exchange myself.
As an investor are you looking to buy or sell in the PHX market? I have heard mixed reviews from some people. I am curious what the community on BiggerPockets thinks!
Specific to Phx area:
Neither. Holding mine for a long time. Phoenix will only get bigger and more expensive over the long run. It's like Los Angeles junior out here.
High prices, bidding wars, seller's market with no concessions with the new challenge of rising rates have been a turn off. This isn't to say a deal can't be found. People are doing it. I'm looking elsewhere.
Overall:
Still trying to buy while being particularly and more cautious considering additional challenges presented for buyers.