Arizona Investment Property

Investing in property in Arizona makes good financial sense. With the market the way it is right now, there are many homes out there that can turn quite a profit. Because the rental market is competitive and rents can be the same as mortgages, you need to be sure what you’re buying will be a good return.
Approximately 20-20% of all purchases nationwide are investment properties. This still goes to prove that investors are turning a profit and that investing in real estate is still a viable option for many. But what if this is your first time and you’re considering jumping into Arizona investment property? There are many factors you should be aware of first and know your options and your resources.

Have Good Credit

Unless you have cash out, buying Arizona investment property will require a larger down payment and possibly higher interest rates. An investment property is a higher risk to lenders and they need to make sure you will not default on the property. It’s very important to have great credit and a larger sum to put down on the home. It’s also important to have money set aside after the purchase for repairs and upkeep. If you spend all your money on getting the home you may not have any left to actually rent the home.

Choose the best location

Buying Arizona investment property is not as simply as picking a good price on any home. Choosing the right neighborhood can really make all the difference in the world. Buying the best house in the neighborhood may not increase your return as the other homes are bringing down the price on yours. Buying the worse home in the best neighborhood can bring up the profit on your home. Check out the communities around Maricopa and then talk to me about which areas would be good investment opportunities. If you’re going to be making the repairs yourself you may want a home that close to your own or your work in case you need to travel frequently.

Are Foreclosures and Short Sales the best option?

While you can find a home far below market value, buying a foreclosure (sometimes called “Bank-owned”, REO or foreclosed) can be more trouble than it’s worth. There are certain laws in place for those who are investing in foreclosures and not for personal occupancy. Many times owner occupancy is allowed first shot at the home before investors. Many homes that are in excellent condition go very fast for investors and owner occupancy alike. Choose your location and your strategy to be ready when the right Arizona investment property becomes available.

Always have an inspection

No matter what the home looks like from the exterior, you will never regret a home inspection after mutual acceptance of the offer. This is a huge investment and not knowing everything you can about it before hand can end up costing you thousands in the end. Hire a professional that is fluent in foreclosures and short sales to be sure all avenues of the home are well checked. It’s then you can decide if you want to go further on your investment.

Your Arizona Investment Property Specialist

Knowing Maricopa Arizona property is my passion and specialty. As your dedicated agent I can help with all your real estate related needs including investing, first time buying, short sales, foreclosures, seller financing, staging, vacant listings, and marketing. There are many great communities and neighborhoods around Maricopa and I would love to help you buy or sell any of these lots or homes. Contact me anytime at: Ron@theoutbackgroup.com (480) 766-8873