If you are thinking about investing in a rental property in Phoenix, this is a great time to take advantage of the growth and opportunities available. Phoenix is a great place for rentals as the area attracts many seniors who want to retire without the hassles of home ownership. They love the climate, the proximity to activities and the natural beauty that Arizona has to offer. The area is also attracting many transplants due to the job growth which is twice that of the nation average. Healthcare, retail and the finance industry are among the fastest growing employment sectors in the Valley of the Sun.
Phoenix experienced the same boom and then bubble burst as the rest of the nation just a few years ago. But the housing market in Phoenix is on the rise. Prices are steadily rising and have been predicted to increase by up to 25% over the next two to three years. That makes this a great time to buy and have your property value increase while you rent the units. With nearly 40% of all Phoenix residents renting, you should have no difficulty in finding tenants.
The current interest rate is as low as it is going to be in the next decade so this is the time to make your investment. Your equity will grow quickly as property values increase and you will also realize a profit in the form of higher rental rates. The rapid growth in the population in the city and suburbs of Phoenix means that rental units are always in demand. Getting in now at a good price will help to ensure the success of your investment.
As with any investment, do your homework and understand all of the costs involved in your purchase as well as the potential rental income. You never want to take a chance on a property that doesn’t forecast at least $100 per month in positive cash flow. And you will also want to be sure that your monthly rent will be at least 1% of your total investment in the property. These numbers are good guidelines to use when you are evaluating the potential for a rent property in any location.
Even knowing that the overall market in Phoenix is on the upswing, be certain to research the specific neighborhood where you are considering making a purchase. Knowing the average time it is taking to rent a property will help you to budget for the carrying costs as well as letting you know how competitively you will need to price your unit. Having this information can greatly reduce your stress level when it comes time to place your rental on the market. Visit www.azrealestatewholesale.com to learn about the great properties in Phoenix and the opportunities for you as the owner of an investment rental property.