Of course I rode the wave from 2018 to 2024 with the west coast transplants during COVID and driving up prices in the area.  

Purchase price: $65,000 Cash invested: $11,000 Our first investment has been a long time coming.

Purchase price: $28,500 Cash invested: $121,000 Sale price: $170,000 SINGLE FAMILY RESIDENTIAL fix and flip What made you interested in investing in this type of deal?

(Net sales proceeds after all costs (PS. loan payoffs are considered proceeds.) minus purchase price is your taxable net gain.

Also the opportunity cost of not deploying your capital in an investment vehicle yielding more than 7% is high. 

Phoenix contains a rare combination of elements that have created an outstanding market for distressed property investments, including the following:Cost Savings: Distressed properties are sold below their market value and enable investors to take hold of properties at a trifle compared to traditionally listed properties.Strong Market Fundamentals: Being among the fastest-growing cities in the country, Phoenix ensures a high demand in housing and rentals, hence good potential for resale or income from rentals.Value Creation Opportunities: Most distressed properties need renovations; thus, such situations present opportunities for investors to increase equity by adding value.Population and Economic Growth: Phoenix remains among those cities in the country which are attracting more and more residents and business; therefore, this presents good, long-term appreciation possibilities of property appreciation and income creation.Challenges to ConsiderWhile the rewards can be great, distressed property investment is not without its challenges.

Purchase price: $65,000 Cash invested: $30,000 Sale price: $195,000 Live in flip.

This is down the alley of tax liens.Yes, deduct the lien from a sale price.

Tempe and Scottsdale can be competitive, but Mesa and certain areas of Phoenix might offer better cash flow opportunities.

Your cleaners can make or break your business, and price isn't the only consideration.